Lay-off fears growing as exporters lose £3m a day

IRISH exporters are losing sales of more than £3 million a day as the blockade of French ports and motorways continues

IRISH exporters are losing sales of more than £3 million a day as the blockade of French ports and motorways continues. In addition Irish haulage firms have lost about £1.5 million so far, as the dispute enters its 10th day.

And, as the French dispute escalates and a new dispute involving Danish truckers closes borders between Denmark and Germany, there are fears that lost and cancelled orders could lead to lay-offs at Irish companies.

The Irish Business and Employers Confederation has warned that Ireland's competitiveness as a trading nation could be severely damaged because of the inability to deliver products to customers.

The companies worst hit by the dispute are those selling live, fresh or perishable produce into markets in France and Spain. These include dairy and cheese companies, producers of fresh and prepared fish and other foods and exporters of meat and live animals.

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But exporters of drink, chemicals and computers have also been affected, with their products failing to reach intended markets.

France accounts for about 10 per cent of all Irish exports, with sales of about £3 billion expected this year. Some 98 per cent of Irish exports by volume and 75 per cent by value leave the State through seaports. About 40 per cent of exports to France are perishable or temperature-controlled products, according to the Irish Road Haulage Association.

France is one of the top five markets for a wide range of Irish produce, mainly food, meat and fish. Because a large proportion of Irish exports to France are perishable or have a short shelf life, the time taken to deliver to export markets is crucial.

As well as the immediate impact on fresh food exporters, there is concern that exporters of chemicals and other raw materials may suffer cancelled orders as French processors fail to get their own goods to markets because of blocked motorways.

The main Irish ports serving continental European markets are Greenore, Dublin, Cork, Waterford and Rosslare. Cargo out of Dublin and some other ports goes to Europe via Britain. For some exporters this presents an opportunity to evade the blockade, using the British ports of Harwich, Dover and lmmingham to send loads into the Hook of Holland, the Benelux countries, Sweden and Denmark.

But these routes do not provide a viable alternative to Irish exporters supplying perishable goods to the French and Spanish markets, because the road distance is too great to get the goods to markets in time.

Some 1,000 Irish trucks travel to Europe every week, according to the Irish Road Haulage Association. Some 400 of these are now stuck at the French ports of Calais, Cherbourg and Le Havre or at some of the 86 motorway exits blocked by the striking French truckers.

The trucks are owned by 300 firms, mainly one-man driver-owned operations or small firms. Being off the road costs about £500 a truck each day, according to the IRHA president, Mr Jimmy Quinn.

As well as its impact on Irish exporters the dispute will affect supplies of goods from France and Spain to the Irish market.

Some exporters may be able to claim compensation from their insurers to cover losses incurred because of the dispute. But losing orders to competitors in other parts of Europe who can use rail networks to access markets in France is a hidden cost in the current dispute which could put Irish jobs at risk in the longer term.

Irish hauliers were hopeful yesterday that the dispute would be resolved soon. But they remain nervous.

"The cost to the French exchequer is so huge that the government must be under immense pressure to get it settled. If it is not sorted this week the losses will start to snowball," Mr Quinn predicted.