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A global shipping services firm has told Sky News it could be another “18 months” before the industry weathers the sea of challenges causing massive disruption to the supply chain.

James Gundy, the chief executive of Braemar Shipping Services, warned that container bottlenecks around the world were only part of the problem and only going to get worse in the run-up to Christmas.

He said its Cory Brothers freight agency operation at Felixstowe was working “flat out” to ease congestion and keep goods flowing as the UK’s largest port encounters renewed difficulties in managing the situation.

However, Mr Gundy said the issue was particularly acute outside the UK with some “13% of all container vessels sitting outside various ports – predominantly China and LA”, he told Ian King Live, despite LA being allowed to operate 24/7 as of last week.

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President Biden has announced that two of the country’s busiest ports can operate around the clock, to ease a backlog in the supply chain.

“They [Cory Brothers] don’t see any kind of ease up until Chinese New Year in February, that won’t filter in ’til March, so we’ve got another good six months to go before we start seeing any easement on the container side… Other markets as well… are in a real congestion situation.

“What the average person is not hearing is the fact there are crew problems with ships, there are COVID cases, docks get quarantined.

“It all just gets knocked on all the way through so I can’t see a real let up for another 18 months probably.”

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The crisis is a consequence of demand outstripping supply as economies continue to reopen and restock after more than a year-and-a-half of coronavirus pandemic disruption.

The HGV driver shortage – particularly acute in the UK in the wake of Brexit – has been blamed for adding to the distribution woes as containers have stacked up with recent delays of up to 10 days in completing deliveries from Felixstowe.

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Container backlog at Felixstowe port


Mr Gundy said a shortage of vessels to carry containers had also contributed to record shipping prices – costs that are set to be passed on through the supply chain.

Global cost pressures, especially in energy prices, are already feeding into surging inflation.

The governor of the Bank of England Andrew Bailey has given his strongest hint yet that UK interest rates will rise by the end of the year despite seeing the bulk of the price problems as “transitory” – short-term and a consequence of the reopening of the global economy.

He told a panel discussion on Sunday the Bank would “have to act” on the risk of medium term inflation.

The Bank has already forecast that the main consumer prices measure of inflation will exceed 4% by the year’s end with rising energy costs tipped to only force that measure up.

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Ex-Post Office head of IT says Paula Vennells ‘hoped to avoid’ inquiry – and reveals she blocked her number

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Ex-Post Office head of IT says Paula Vennells 'hoped to avoid' inquiry - and reveals she blocked her number

A former Post Office executive has said she was forced to block ex-boss Paula Vennells’ phone number after the ex-CEO called multiple times asking for help to avoid an independent inquiry into the Horizon IT scandal.

Lesley Sewell, previously the company’s head of IT, told the Post Office inquiry on Thursday that former CEO Ms Vennells had reached out to her four times between 2020 and 2021.

Ms Sewell said that she blocked Ms Vennells’ number due to discomfort with the contact.

In her witness statement to the probe, Ms Sewell said that one of Ms Vennells’ emails referenced the need to fill in memory gaps regarding Horizon and “Project Sparrow”, a committee addressing issues with forensic accountants who identified flaws in the accounting system.

“Paula contacted me on four occasions in total. I recall blocking her number after the last call as I did not feel comfortable with her contacting me,” Ms Sewell said.

“I had not spoken to Paula since I had left POL [Post Office Limited] in 2015.”

Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA
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Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA

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According to Ms Sewell’s testimony, former chief executive Ms Vennells said that she had “been asked at short notice” to appear before a parliamentary select committee on “all things Horizon/Sparrow and need to plug some memory gaps”.

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Ms Sewell says Ms Vennells added: “My hope is this might help avoid an independent inquiry but to do so, I need to be well prepared.”

Ms Sewell, who struggled to contain her emotions and broke down in tears while giving her oath at the start of her inquiry evidence, was offered support and breaks as needed by chairman Sir Wyn Williams.

Sir Wyn told the former executive: “Ms Sewell, I appreciate this may be upsetting for you, Ms Price will ask you a number of questions in a proper and sensible manner, but if at any time you feel you need a break, just let me know, all right?”

Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA
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Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA

The Post Office has faced significant scrutiny following the ITV drama Mr Bates Vs The Post Office which highlighted the Horizon IT scandal.

The faulty system led to the prosecution of more than 700 sub-postmasters between 1999 and 2015, with many still awaiting full compensation despite government announcements regarding payouts for those with quashed convictions.

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London City Airport lands FitzGerald as first female boss

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London City Airport lands FitzGerald as first female boss

London City Airport will on Thursday name its first permanent female chief executive as it targets approval of an expansion plan that would create nearly 1,500 jobs.

Sky News understands that the Docklands airport has told staff that Alison FitzGerald, who has been co-CEO since January alongside finance chief Wilma Allan, has landed the role.

Ms FitzGerald has worked at City Airport – the capital’s fourth-busiest – for more than a decade, becoming chief information officer and then chief operating officer.

London City Airport 3
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A woman wearing a face mask walks by London City Airport, which suspended its operations during the pandemic

She replaces Robert Sinclair, who left in January after six years to become boss of the High Speed 1 rail link.

The airport is owned by a consortium of Canadian pension funds and Kuwait’s sovereign wealth fund, which have backed a plan to increase its annual passenger traffic from about 6.5m to 9m.

It is appealing against Newham Council’s rejection of a planning application that would see it extend operating hours at the site, which is popular with City commuters.

The airport’s proposals include no increase in the annual number of flights and, in what it claims is a first for a UK airport, a commitment that only cleaner, quieter, new generation aircraft will be allowed to fly in any extended periods.

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The runway at London City Airport

The appeal is being reviewed by the Independent Planning Inspector.

Its change of leadership makes London City the second of the capital’s airports to name a new CEO in quick succession, following the arrival at Heathrow of Thomas Woldbye last year.

“London City delivers one of the best passenger experiences in the UK and I’m committed to building on this success even further,” Ms FitzGerald said.

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Thames Water investors to quit boards amid spectre of bailout

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Thames Water investors to quit boards amid spectre of bailout

Representatives of Thames Water’s multinational syndicate of shareholders are poised to quit as directors of its corporate entities after refusing to inject the billions of pounds of funding required to bail it out.

Sky News has learnt that a number of board members at companies connected to Kemble Water Finance, Thames’s parent, are expected to resign in the coming days.

City sources described the move as “the logical next step” after the owners of Britain’s biggest water utility said they would not commit more than £3bn to help upgrade its ageing infrastructure and shore up its debt-laden balance sheet.

A default on part of Thames Water‘s holding company debts last month has raised the prospect that the company is heading towards special administration, a form of insolvency that would effectively leave the government liable for managing a utility firm which serves nearly a quarter of Britain’s population.

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Thames Water under threat

Thames Water is owned by a group of sovereign wealth funds and pension funds from countries including Abu Dhabi, Australia, Britain, Canada and China.

A number of the investors are represented on boards which sit at various points in the group’s labyrinthine capital structure.

It was unclear on Wednesday whether Michael McNicholas, a representative of the giant Canadian pension fund Omers and who sits on the board of Thames Water Utilities Limited, was among those in the process of stepping down.

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Even bigger surge in bills proposed under new plans

Along with the rest of the privately owned water industry, Thames Water faces a crucial moment next month when Ofwat, the industry regulator, publishes its draft determination on companies’ five-year business plans.

The draft rulings will be subject to negotiation before final versions are published in December.

Thames Water and a spokesman for Kemble declined to comment.

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