UK Treasury report details Brexit impacts on shipping
New analysis by the UK Treasury has claimed that Britain’s shipping industry would be "heavily exposed" should the country vote to leave the EU on 23 June .
The report details the impact that a 'leave' outcome would have on the aviation and maritime sectors, which support 125,000 and 113,000 jobs, respectively.
Access to the EU’s Single Market, and the competition and regulations that accompany EU membership, is said to have “reduced costs” for businesses in the UK. A vote to leave could create confusion around trading terms and render businesses unsure of their access to the Single Market.
The Treasury report said: “Leaving the EU would create uncertainty over the extent to which EU rules would apply to UK shipping.”
EU membership has also allowed UK-based airlines to fly any route within the European Union, bringing passengers a greater choice in destinations and lower flight prices.
According to the Treasury, the “cross-border” nature of both shipping and aviation means that differences between UK and EU regulations would directly raise costs for businesses.
Ultimately, the report cautions that UK companies with strong business-ties to the EU may see fit to relocate operations and jobs to the continent in the event of a Brexit.
The UK political establishment remains deeply divided as to the foreseeable consequences of a leave vote — with former Mayor of London Boris Johnson recently dismissing job loss predictions by the Treasury as a “hoax”.
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Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany