'We've seen a stampede': Irish companies rush to stockpile goods in US
ICL Container ship Independent Vision arrives in Cork Harbour to collect cargo bound for the United States. Picture; David Creedon / Anzenberger
With the threat of tariffs clouding Irish businesses in uncertainty, those reliant on the US as a key market have been scrambling to stockpile products.
Irish-based companies across pharma, food, medtech, machinery and beyond have been exporting goods to the US at a rapid rate as part of efforts to reduce their exposure to a series of punitive tariff measures on goods entering the country.
"We have seen a stampede," says Derek Nelson, sales executive at Irish Liner Agency Johnson Steven, which operates Independent Container Liner (ICL), the only direct shipping route out of Ireland connecting to the US.
"There's definitely been a lot of stockpiling in the last few weeks. It's been a very busy time and remains so still as companies continue to increase production."
Launched in 2020, the ICL service takes 10 days to reach Chester, Pennsylvania, and 13 days to Wilmington, North Carolina, from Ringaskiddy in Cork, providing exporters with unprecedented opportunities to develop business in the US.
The service has seen steady growth year-on-year since its launch, with Mr Nelson telling the "The service has been very successful. We are full almost every week."
Now, with export-dependent businesses across Ireland bracing for a tit-for-tat trade war between Europe and the US, business has been booming for the one-of-a-kind service, with pharmaceutical companies, food and drink businesses, building material manufacturers, medtech giants and machinery providers all rushing to fast track shipping.
Mr Trump's tariffs on all European exports into the US are 20%.
In response, global trading partners' potential counter-tariffs targeting US agricultural, energy and machinery exports could escalate into a worldwide trade war, creating uncertainty and added costs for businesses and investors.
Speaking on the US President's incoming tariff plans, Mr Nelson said the company was "watching cautiously," but encouraged those involved to remain calm.
"When it comes to pharma, people need their medication. There are not two ways about it," Mr Nelson said.
"Production facilities which have established themselves in Ireland cannot just up and leave. There's no fear for now that demand will fall."
"We are cautiously watching food and drink. Obviously, if its becomes too expensive to buy Irish food and alcohol products, there could be a potential drop-off in demand. Sectors like beef are already under pressure from Brazil and Australia, and many US customers may not necessarily care where they are buying meat from."
Despite this, Johnson Stevens remains optimistic, Mr Nelson said, telling the : "Trump has already implemented tariffs on aluminium and steel. We haven't seen a fall off in these commodities, they're still moving now."
"There would be a quiet concern, but despite the uncertainty, we remain optimistic that sense will prevail."
