French liner giant CMA CGM has moved its UK-flagged fleet due to Brexit uncertainty.
Prior to the UK referendum on leaving the European Union in 2016, it had 49 ships entered with the British register — the largest owner of boxships under the flag.
“In light of Brexit and to avoid any uncertainty in the period with our fleet status and regulations ... CMA CGM has decided to transfer its fleet under [the] UK flag to other European countries,” the company said in a statement to Reuters.
“This decision was taken after it appeared to us that the UK flag was excluded from the draft agreement envisaged between the UK and the European Union.”
Transfers have taken place to France and Malta.
Flag still 'high quality'
A spokesperson for the UK's Maritime and Coastguard Agency (MCA) said: “We regret that CMA CGM has chosen to reflag its vessels due to its obligations under EU regulation.
“It is however, no reflection on the UK Ship Register itself, which the company came into originally because of the high quality it represents.”
This year, P&O moved its last UK vessels to Cyprus to maintain European tax status, and P&I clubs have been opening overseas offices due to Brexit uncertainty.
The news is another blow to the UK register, which had 1,229 ships as of the end of May. This is down from 1,315 a year ago.
Wallenius Wilhelmsen told Reuters that it had completed the sale of eight UK-flagged ships to a Maltese subsidiary last year.
“Due to the need for simplification of group structure and uncertainty of Brexit consequences, we concluded to exit UK,” a company spokeswoman said.
Tanker owner Stolt-Nielsen is also reviewing the position of its UK-flagged vessels.
