Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made with Cabinet colleagues of the potential impact of rising shipping costs on the Scotch whisky industry.

Whilst no specific assessment has been made on the impact of rising shipping costs on the Scotch Whisky industry, according to the Scotch Whisky Association nearly 40% of businesses reported shipping costs doubling in the last 12 months.

Industries have reported that shipping costs have risen to a high level in international freight markets during 2021 and 2022. This is as a result of unprecedented levels of demand driven by changed consumer behaviour during the pandemic, and global operational factors that impacted capacity. This has been a worldwide impact and all types of goods using container shipping will have been affected. The operational issues have significantly improved, and market analysis by industry suggests that current demand is softening and that pricing levels have also started to decline in line with this.

The UK Government is in regular dialogue with the industry and aims to provide the framework for a forwarding-thinking, competitive alcoholic drinks sector which can grow, export and innovate in line with the Government’s ambitions.