The exit of Britain from European union-being referred as Brexit has its mixed effects on the Indian logistics industry. While many of the investors are planning to increase their investments in UK as it will be free from the regulations of EU, shipping business may see it otherwise.
The strait of Gibraltar is the entry point to the Atlantic from the Mediterranean Sea. Through it approximately 71000 ships carrying 240 million tons of cargo pass every year. The strait of Gibraltar is a part of Britain but located at the tip of the Spanish peninsula. People of this area have voted to ‘remain’ in EU, creating further confusion.
Another concern is that now EU will give a tough competition to London which houses the headquarters of most insurance and banking firms making London a shipping hub. This might also create a tension as EU will now try to create a new shipping hub of its own.