Three quarters of UK hauliers face being shut of the EU if there is no Brexit trade deal, sparking fresh fears about shortages of food and other goods.

Permits would be made available for only 2,088 businesses from January, a trade group is warning a massive drop on the 8,348 that were registered for journeys last year.

The Freight Transport Association (FTA), said companies, already under financial strain because of coronavirus, needed a solution to be found within weeks, as it prepares for its Christmas peak.

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But the Brexit talks remain deadlocked, with little chance of an agreement by the end of October deadline without a breakthrough when they resume this week.

The UK would then be forced to rely on a fixed number of permits through the European Conference of Ministers of Transport (ECMT) scheme and would receive only 2,088.

Sarah Laouadi, the FTAs European policy manager, said the situation emphasised the vital task of securing a free trade agreement with the EU.

If you learn whether you have the right to continue operating as a company on Dec 28 and the only fallback plan is the ECMT system, which requires applications and allocations for permits, it will be too late, she warned.

The Department for Transport (DfT) said it was optimistic that an agreement can be reached, but referred to protecting only the substantial flow of international haulage.

Lorry companies will lose the right to provide transport services when the UK leaves the single market and customs union at the end of 2020, when the transition period concludes.

A referendum is held on Britain's membership of the European Union. Fifty-two per cent of the country votes in favour of leaving

AFP via Getty

David Cameron resigns on the morning of the result after leading the campaign for Britain to remain in the EU

Getty

Theresa May becomes leader of the Conservative party and prime minister, winning the leadership contest unopposed after Andrea Leadsom drops out

Getty

The High Court rules that parliament must vote on triggering Article 50, which would begin the Brexit process

The prime minister triggers Article 50 after parliament endorses the result of the referendum

Getty

Seeking a mandate for her Brexit plan, May goes to the country

Getty

After a disastrous campaign, Theresa May loses her majority in the commons and turns to the DUP for support. Jeremy Corbyn's Labour party makes gains after being predicted to lose heavily

AFP/Getty

David Davis and Michel Barnier, chief negotiators for the UK and EU respectively, hold a press conference on the first day of Brexit negotiations. Soon after the beginning of negotiations, it becomes clear that the issue of the border between Northern Ireland and the Republic will prove a major sticking point

AFP/Getty

The government suffers a defeat in parliament over the EU withdrawal agreement, guaranteeing that MPs are given a 'meaningful vote' on the deal

Following a summit at Chequers where the prime minister claimed to have gained cabinet support for her deal, Boris Johnson resigns as foreign secretary along with David Davis, the Brexit secretary

Reuters

The draft withdrawal agreement settles Britain's divorce bill, secures the rights of EU citizens living in the UK and vice versa and includes a political declaration commiting both parties to frictionless trade in goods and cooperation on security matters. The deal also includes the backstop, which is anathema to many brexiteers and Dominic Raab and Esther McVey resign from the cabinet in protest

Getty

After several failed attempts to pass her withdrawal agreement through the commons, Theresa May resigns

Reuters

Boris Johnson is elected leader of the Conservative party in a landslide victory. He later heads to Buckingham Palace where the Queen invites him to form a government

Getty

Boris Johnson prorogues parliament for five weeks in the lead up to the UK's agreed departure date of 31 October.

Stephen Morgan MP

The High Court rules that Johnson's prorogation of parliament is 'unlawful' after a legal challenge brought by businesswoman Gina Miller

Getty

Following a summit in Merseyside, Johnson agrees a compromise to the backstop with Irish prime minister Leo Varadkar - making the withdrawal agreement more palatable to Brexiteers

Getty

As parliament passes the Letwin amendment requiring the prime minister to request a further delay to Brexit, protesters take to the streets in the final show of force for a Final Say referendum

Getty

The Conservatives win the December election in a landslide, granting Boris Johnson a large majority to pass through his brexit deal and pursue his domestic agenda

Getty

The withdrawal agreement passes through the commons with a majority of 124

Getty

Members of the European parliament overwhelmingly back the ratification of Britain's departure, clearing the way for Brexit two days later on 31 January. Following the vote, members join hands and sing Auld Lang Syne

AFP/Getty

A referendum is held on Britain's membership of the European Union. Fifty-two per cent of the country votes in favour of leaving

AFP via Getty

David Cameron resigns on the morning of the result after leading the campaign for Britain to remain in the EU

Getty

Theresa May becomes leader of the Conservative party and prime minister, winning the leadership contest unopposed after Andrea Leadsom drops out

Getty

The High Court rules that parliament must vote on triggering Article 50, which would begin the Brexit process

The prime minister triggers Article 50 after parliament endorses the result of the referendum

Getty

Seeking a mandate for her Brexit plan, May goes to the country

Getty

After a disastrous campaign, Theresa May loses her majority in the commons and turns to the DUP for support. Jeremy Corbyn's Labour party makes gains after being predicted to lose heavily

AFP/Getty

David Davis and Michel Barnier, chief negotiators for the UK and EU respectively, hold a press conference on the first day of Brexit negotiations. Soon after the beginning of negotiations, it becomes clear that the issue of the border between Northern Ireland and the Republic will prove a major sticking point

AFP/Getty

The government suffers a defeat in parliament over the EU withdrawal agreement, guaranteeing that MPs are given a 'meaningful vote' on the deal

Following a summit at Chequers where the prime minister claimed to have gained cabinet support for her deal, Boris Johnson resigns as foreign secretary along with David Davis, the Brexit secretary

Reuters

The draft withdrawal agreement settles Britain's divorce bill, secures the rights of EU citizens living in the UK and vice versa and includes a political declaration commiting both parties to frictionless trade in goods and cooperation on security matters. The deal also includes the backstop, which is anathema to many brexiteers and Dominic Raab and Esther McVey resign from the cabinet in protest

Getty

After several failed attempts to pass her withdrawal agreement through the commons, Theresa May resigns

Reuters

Boris Johnson is elected leader of the Conservative party in a landslide victory. He later heads to Buckingham Palace where the Queen invites him to form a government

Getty

Boris Johnson prorogues parliament for five weeks in the lead up to the UK's agreed departure date of 31 October.

Stephen Morgan MP

The High Court rules that Johnson's prorogation of parliament is 'unlawful' after a legal challenge brought by businesswoman Gina Miller

Getty

Following a summit in Merseyside, Johnson agrees a compromise to the backstop with Irish prime minister Leo Varadkar - making the withdrawal agreement more palatable to Brexiteers

Getty

As parliament passes the Letwin amendment requiring the prime minister to request a further delay to Brexit, protesters take to the streets in the final show of force for a Final Say referendum

Getty

The Conservatives win the December election in a landslide, granting Boris Johnson a large majority to pass through his brexit deal and pursue his domestic agenda

Getty

The withdrawal agreement passes through the commons with a majority of 124

Getty

Members of the European parliament overwhelmingly back the ratification of Britain's departure, clearing the way for Brexit two days later on 31 January. Following the vote, members join hands and sing Auld Lang Syne

AFP/Getty

Ministers have announced 705m for carrying out post-Brexit trade checks, including building 12 lorry parks five in Kent alone to hold vehicles delayed at Dover and other ports.

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But they have been accused of downplaying previously-acknowledged dangers from a no-deal Brexit, including food, fuel and medicine shortages.

Now the ECMT scheme is poised to add to those headaches, with the DfT charged with allocating the permits after a total is decided at EU level.

When a no-deal Brexit loomed last year, the hauliers who made the most cross-Channel journeys were prioritised, which downgraded trade between Britain and the Republic of Ireland.

If the same model is used, businesses crossing the Irish Sea might need to reroute, disrupting supply chains, the FTA warned.

Without a trade deal, bilateral agreements might have to be struck with individual member states, but Ms Laouadi warned this would be slow and that a patchwork of rules would be a nightmare to navigate.

It would be especially cumbersome for UK businesses operating in more than one EU state after crossing the Channel, she added.

Alternatively, the EU could grant temporary market access to UK hauliers for nine months, but this was not a sustainable, long-term solution, Ms Laouadi said.

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Brexit: Food shortage fears as three quarters of UK hauliers face being locked out of EU - The Independent