Chamber of Shipping: UK shipping needs a stable and ‘safe’ tax regime

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Thursday, 18, Sep 2008 12:00

New Department for Transport (DfT) statistics show sustained shipping growth, but the Chamber warns London is under serious threat unless tax regime supports the industry.

The UK registered fleet is almost five times its size since the introduction of tonnage tax in 2000, but the Chamber of Shipping has warned that its continued strength is dependent upon the UK’s ability to offer shipping businesses a stable and ‘safe’ tax regime that encourages long-term investment.

The DfT has today published the Transport Statistics, including the merchant fleet at end 2007.

The key statistics show:

o The UK registered trading fleet increased by 17 to 646 ships during 2007. Overall deadweight tonnage totalled 13.0 million tonnes (5 per cent up on 2006, and 439 per cent up on 1997)

o The UK registered trading fleet included 134 tankers, 133 ro-ro vessels, 165 container vessels and 38 passenger vessels

o The trading fleet owned by UK companies increased by 10 per cent to 19.6 million deadweight tonnes during 2007, 85 per cent higher than in 1997

o Of the 738 trading vessels owned by UK companies, 168 were tankers accounting for one third of deadweight tonnage. There were also 138 ro-ro, 101 container and 52 passenger vessels

o World tonnage of trading vessels totalled 1,092 million deadweight tonnes

This continued growth – founded on the fiscal and regulatory reforms of the late 1990s – has enabled the UK to take advantage of the long shipping boom.

What is clear is that the next few years will see more difficult trading conditions and uncertainty, as the markets digest the effects of the turndown in British and other economies, the expectation of continued high prices for fuel, the worldwide shortage of skilled seafarers and the uncertainties of the eventual application of climate-change policies to shipping.

At the same time other global shipping centres – notably Dubai and Singapore – are aggressively marketing themselves as shipping business centres, determined to usurp London’s pre-eminence.

Uncertainties over the taxation status of non-domiciles and tonnage tax has already had an impact on the industry, with some shipping business already migrating away from the UK.

The challenges and opportunities are great – but a constant eye on the ball is required, both in Westminster and Brussels, to ensure British shipping stays strong and London maintains its status as the centre of the maritime world.

ENDS

For further information please contact:

John Stevenson, Chamber of Shipping

020 7417 2833

Notes to Editor

DfT Maritime Statistics 2007: http://www.dft.gov.uk/pgr/statistics/datatablespublications/maritime/compendium/maritimestatistics2007

· The Chamber of Shipping is the trade association for the UK shipping industry, working to promote and protect the interests of its members both nationally and internationally. With 140 members and associate members, the Chamber represents over 860 ships of about 23 million gross tonnes and is recognised as the voice of the UK shipping industry.

· For more information on British Shipping, please go to: http://www.british-shipping.org