It was clear Brexit was always going to have an impact on logistics company. This is due to the amount of cross-border travel involved. So, how has the sector been impacted?
- Delays at ports
- Mandatory border checks
- Additional paperwork processing
- Transport fees
- New limitations and restrictions on goods
To keep these impacts to a minimal, logistics companies have had the challenge of adapting quickly to the changing legislation.
It will still however, be some time before the full effect is realised.
Supply Chain Disruption
There has been huge disruption to British ports, due to additional custom checks. This has resulted in a backlog of demand to major supply chains including grocery and manufacturing. It’s suggested this is likely to ease after the initial adjustment period.
The UK government has recommended that logistics companies familiarise themselves with the required documents and complete all the necessary paperwork for the shipments. All of which should be prepared in advance, including making a duty payment.
Many suppliers made the decision to cut off sales to the EU due to associating logistics costs. This hinders business’s ability to scale on an international level, resulting in a decreased bottom line. Again, we should see this ease once logistics providers have moved through the transition period.
Additional Permits
On the road, UK registered vehicles will be required to apply for international driving permits. It will be negotiated between the UK and the EU on whether or not a ECMT permit will be required for every journey.
Because these permits are issued on a limited basis this will severely impact UK hauliers and the frequency in which they can cross the border.
Reduction in Air Travel
The UK will have their cargo services between EU and third countries capped at the 2018 flight frequency level.
This will restrict the number of companies able to opt for air travel to avoid delays and ship ports.
The UK will also be prevented from transporting goods between two third countries and stop in an EU country.
Impacts on Sea
Where UK companies are dependent on shipping routes between the UK and the EU, they are likely to face issues with cabotage if no deal is struck between the two unions.
If there is no deal, an individual agreement will need to be made with each EU member state. This would cause significant delays and restrictions for UK sea freight.
There will be additional security information required of any shipping containers carrying passengers. This will need to be submitted prior to travel and will likely require additional training for clients of the logistics companies of what information is now being requested.
You can ready more insights here.
Gloucester Freight are still operating and are adapting well to the changes brought on by Brexit. We are confident that we can still meet the requests and requirements of our clients.