LONDON

UK scraps Brexit ferry deal with firm that has no ships

The British government has canceled a contract to ship goods to the country after it leaves the European Union with a company that turned out to have no boats and no experience running a ferry service.

Authorities had been criticized for the $18 million deal with Seaborne Freight, part of plans to keep trade flowing if Britain leaves the EU without a divorce deal.

Britain is due to leave the EU on March 29, but British lawmakers have not yet agreed upon a divorce deal outlining departure rules and future trade terms. British businesses fear a no-deal Brexit will cause gridlock at ports by ripping up the trade rulebook and imposing tariffs, customs checks and other barriers between the U.K. and the EU, its biggest trading partner.