Irish exporters yesterday welcomed the Irish Ferries decision to remove security personnel from the company's two ships stranded in Welsh ports, but reiterated their warning that a prolonged dispute could lead to manufacturing job losses here.
The security staff were sent on board the Isle of Inishmore in Pembroke and the Ulysses in Holyhead last Thursday. This led to standoffs between crew members on board the ships and the company which have prevented both ships from sailing since then. Sailings by Irish Ferries' other two ships, the Jonathan Swift and the MV Normandy, have since been suspended.
John Whelan, chief executive of the Irish Exporters' Association, said removing the security personnel was a "positive move" which had given rise to hopes of a resolution.
But he warned that capacity on shipping routes in the State had been reduced by up to 30 per cent as a result of the dispute.
While ports in Northern Ireland could compensate for some lost capacity, the dispute still had the potential to cost the economy millions of euro a day.
"We've lost 25-30 per cent of the capacity of our shipping routes out of the Republic with the Irish Ferries dispute," he said. "Irish Ferries are a major player, the Ulysses is one of the biggest car-carriers in the world."
Mr Whelan said many larger exporters would have chartered planes to take cargo which they ordinarily would have transported by sea.
But smaller exporters in particular were likely "to feel the pinch" as they would be unable to guarantee the necessary capacity on a plane.
Pharmaceuticals and computers were among the major exports affected, he said. The former were frequently required to be kept under tight temperature controls.
"If these are going to leave the factory, exporters have to make sure they get to the ship within a specified time-frame," he said.
"Exporters will be doing everything they can to hold on to their markets, but if the reduction in capacity strings out over the next two weeks, their options will be limited."