Baltic Exchange: Contribution Of UK’s Maritime Services Sector Underestimated

The booming $30 billion freight derivatives market and high ocean freight rates mean that the financial contribution of maritime services to the UK economy vastly exceeds researchers’ estimates of £1 billion a year in foreign earnings, according to Baltic Exchange Chairman Peter Kerr-Dineen.

Speaking at a lunch today (Monday) for the newly appointed Lord Mayor Alderman Michael Savory, Mr Kerr-Dineen said:

“In financial terms, the contribution this makes to this nation’s economy is growing by the day, but clearly greatly exceed the oft quoted figure of £1 billion a year in foreign earnings. It is also contributing increasingly to inward investment, and to more general tax revenues.”

The Baltic Chairman also underlined the importance that Greek and other foreign shipowners based in the UK bring to the country and applauded the Lord Mayor for highlighting to the Prime Minister the importance of maintaining the status quo as far as non-domiciled taxation policy was concerned.

Peter Kerr-Dineen called on the British government to work with the shipping sector to capitalise on the explosive growth in world trade which is being matched by massive fleet expansion.

“It should be possible to promote a range of initiatives, wholly compatible with the broad thrust of Government policy, which would greatly expand the shipowning, managing and service industries here in Britain,” said Peter Kerr-Dineen.

The Lord Mayor agreed commenting:

“Tonnage tax, the non-dom rules and lease financing over the past few years has reversed the decline of the British fleet and resulted in substantial inward investment. We already have the recipe for success. We just need to keep on adding new ideas to the mix. And it is also vital that Government realise just how important this mix is to our long-term success.”

The Baltic Chairman also presented the Lord Mayor with a cheque for £10,000 for the Lord Mayor’s Appeal 2005