There is rising concern among major exporters about shipping to the UK after one of the most important connections was suspended.
Freeport sources said that around 30 containers a week used to be picked up in Malta by the Epic II, a vessel run by a consortium made up of CMA-CGM, Hapag Lloyd and Hamburg Sud. The vessel used to come from the Far East and went to Felixstowe, a Sussex port, but some weeks ago decided it would no longer stop in Malta.
Another vessel run by the same consortium, the Epic I, still calls in Malta, once a week eastbound and once a week westbound, to and from Tilbury.
However, one exporter, who asked not to be named, said that Tilbury, in the Thames estuary, was not his port of choice.
"Our client has warehouses in Felixstowe so it used to be ideal. Now we have to send the containers from Tilbury by road, which adds considerably to the cost.
"We ship as many as 16 containers a week. The problems started last June when the ship started to turn up with less empty space and left some of our cargo behind. "You have to bear in mind that large vessels always give much better prices than feeder vessels because of the economy of scale and their efficiency. What is happening might not seem very alarming to outsiders but even minor changes in price can make our products less competitive.
"We are talking about a number of the major companies in Malta who between them employ thousands of employees," he said.
The situation has been steadily worsening - prompting the Federation of Industry to raise the matter prior to its recent conference.
CMA CGM dropped two other UK services some months ago. This leaves the Iranian line service to Felixstowe but this was criticised as having an unreliable schedule by several people contacted by The Times Business. Rather than two calls a week, the ships often turn up once in a week and three times in the next, one person said.
Shipping sources said that the bottom line is that ships call in at the Freeport to offload cargo for transhipment to other Mediterranean ports - which in turn creates space for local cargo.
"But this is incidental. No ship comes to Malta specifically to pick up local cargo," the sources said.
"It is quite possible that there is less cargo bound for the Med so the stop is no longer justified."
It is not clear whether the Epic II service will resume - there are certainly rumours that it will be, although it seems likely that it would go to Tilbury rather than Felixstowe, so the problem would still not be solved to everyone's satisfaction.
This leaves the Epic I as the only lifeline but while Freeport sources say this is one of the most reliable services, exporters say it occasionally bypasses Malta or turns up late - held up in the Far East by monsoon weather.
The exporters said local ship agents were also suffering as they earned a lot less commission from transhipment than they did from local cargo.
"But this goes beyond them. There is nothing they can do about it," one exporter noted.
No one is disputing that exporters to the UK are facing a problem. The quandary is what to do about it - and whose responsibility it is.
The Freeport sources said that exporters had connections to over 100 ports and if the UK route was not available, they would have to go for another. However, this would clearly cost more and could mean last minute shuffling from one form of transport to another.
"You cannot load a container and then transfer everything to a trailer with a click of your fingers," one exporter said.
"What can we do? We only find out at the last minute that our containers are not going to be uploaded. We are on time from our end - but then they get stranded at the Freeport."
He said he had already had written warnings from clients about missed delivery deadlines.
The situation is better - albeit not perfect - for companies that use Ro-Ro services and trailers or airfreight. One company complained that his shipments were sometimes left behind - or at least part of them - because priority was given to perishables.
"Supply chain logistics is very complex. If our delivery holds up the production line, there is a €1 million a day fine. Companies in other countries can guarantee their delivery to the clients' door down to the hour. We must be able to compete with that.
"Industry is really complaining and we have to remember that Malta cannot attract FDI unless there is a guaranteed infrastructure to support it. My company is already considering moving some lines back to the UK because the logistics are not working out. They were only brought to Malta recently."
Freeport sources said that around 30 containers a week used to be picked up in Malta by the Epic II, a vessel run by a consortium made up of CMA-CGM, Hapag Lloyd and Hamburg Sud. The vessel used to come from the Far East and went to Felixstowe, a Sussex port, but some weeks ago decided it would no longer stop in Malta.
Another vessel run by the same consortium, the Epic I, still calls in Malta, once a week eastbound and once a week westbound, to and from Tilbury.
However, one exporter, who asked not to be named, said that Tilbury, in the Thames estuary, was not his port of choice.
"Our client has warehouses in Felixstowe so it used to be ideal. Now we have to send the containers from Tilbury by road, which adds considerably to the cost.
"We ship as many as 16 containers a week. The problems started last June when the ship started to turn up with less empty space and left some of our cargo behind. "You have to bear in mind that large vessels always give much better prices than feeder vessels because of the economy of scale and their efficiency. What is happening might not seem very alarming to outsiders but even minor changes in price can make our products less competitive.
"We are talking about a number of the major companies in Malta who between them employ thousands of employees," he said.
The situation has been steadily worsening - prompting the Federation of Industry to raise the matter prior to its recent conference.
CMA CGM dropped two other UK services some months ago. This leaves the Iranian line service to Felixstowe but this was criticised as having an unreliable schedule by several people contacted by The Times Business. Rather than two calls a week, the ships often turn up once in a week and three times in the next, one person said.
Shipping sources said that the bottom line is that ships call in at the Freeport to offload cargo for transhipment to other Mediterranean ports - which in turn creates space for local cargo.
"But this is incidental. No ship comes to Malta specifically to pick up local cargo," the sources said.
"It is quite possible that there is less cargo bound for the Med so the stop is no longer justified."
It is not clear whether the Epic II service will resume - there are certainly rumours that it will be, although it seems likely that it would go to Tilbury rather than Felixstowe, so the problem would still not be solved to everyone's satisfaction.
This leaves the Epic I as the only lifeline but while Freeport sources say this is one of the most reliable services, exporters say it occasionally bypasses Malta or turns up late - held up in the Far East by monsoon weather.
The exporters said local ship agents were also suffering as they earned a lot less commission from transhipment than they did from local cargo.
"But this goes beyond them. There is nothing they can do about it," one exporter noted.
No one is disputing that exporters to the UK are facing a problem. The quandary is what to do about it - and whose responsibility it is.
The Freeport sources said that exporters had connections to over 100 ports and if the UK route was not available, they would have to go for another. However, this would clearly cost more and could mean last minute shuffling from one form of transport to another.
"You cannot load a container and then transfer everything to a trailer with a click of your fingers," one exporter said.
"What can we do? We only find out at the last minute that our containers are not going to be uploaded. We are on time from our end - but then they get stranded at the Freeport."
He said he had already had written warnings from clients about missed delivery deadlines.
The situation is better - albeit not perfect - for companies that use Ro-Ro services and trailers or airfreight. One company complained that his shipments were sometimes left behind - or at least part of them - because priority was given to perishables.
"Supply chain logistics is very complex. If our delivery holds up the production line, there is a €1 million a day fine. Companies in other countries can guarantee their delivery to the clients' door down to the hour. We must be able to compete with that.
"Industry is really complaining and we have to remember that Malta cannot attract FDI unless there is a guaranteed infrastructure to support it. My company is already considering moving some lines back to the UK because the logistics are not working out. They were only brought to Malta recently."