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SUPPLY CHAIN SOLUTIONS


BREXIT’S IMPACT ON THE UK’S LOGISTICS INDUSTRY


Since the historic referendum on 23 June 2016, Brexit has been a seismic event, reshaping the landscape of the United Kingdom's logistics and transport sector. With the official departure from the European Union on 31 January 2020, followed by subsequent negotiations and agreements, the impacts continue to reverberate throughout the industry, raising questions about its future trajectory. There is no denying that the aftermath of Brexit has seen logistics businesses grappling with a host of operational adjustments, from managing delays in transportation to navigating intricate import and export regulations. Meanwhile, compliance with new import and export procedures and health regulations have posed formidable challenges for businesses of all sizes. Nick Ghia, chief revenue officer of Transporeon, a Trimble company, explores how Britain’s split from the EU has affected the logistics Industry as a whole.


and logistics businesses having to meet new product standards which are stricter, particularly when trading restricted goods and livestock, to name a few. These new customs regulations have made it more difficult and time-consuming to ship goods between the UK and the EU. Ultimately this means that businesses reliant on international trade have had to adapt to the new regulations, which has added costs and delays. Brexit's impact on UK borders is starkly


D


evident in the realm of food exports, with significant financial burdens placed on


ue to customs changes being introduced as a result of Brexit and the end of free trade between Britain and the EU, the knock on effect has seen the introduction of more paperwork


businesses sending products to the EU. In fact, in recent reports, lorry drivers from continental Europe are set to reject jobs taking them to the UK unless delays are reduced and driver conditions improved at post-Brexit border posts. The delays are due to the border checks for plant and animal products brought in on 30 April. Not only this, but the requirement for exporters of foods of animal origin to obtain veterinary sign-offs and export health certificates (EHCs) has led to a significant rise in costs. And with data from the Office for National Statistics showing the amount of meat products exported to the EU from the UK in 2023 totalled £1.26bn, a 17 per cent drop from the £1.53bn exported in 2019, this notable decline in exports, combined with the rising costs associated with Brexit, will affect smaller producers. Consequently, some companies


22 SEPTEMBER 2024 | FACTORY&HANDLINGSOLUTIONS


have faced reduced profits or even had to cease exporting activities altogether. The introduction of reciprocal measures by the UK in response to EU requirements further exacerbates the situation, potentially putting EU exporters off from engaging with the UK market due to increased bureaucracy and costs. While larger companies may absorb these new expenses, the ramifications, again, for smaller enterprises are profound, prompting concerns about the sustainability of their operations.


DELAYS AT THE BORDER The delays at the border caused by Brexit have been well documented over the past few years and in turn have helped cause numerous issues for all industries, however, the food industry has potentially suffered the most due to lack of warehousing facilities and a short shelf life making the process seemingly impossible. The medical sector has also been hit hard by delays at the border, with some suppliers in the UK being forced to stockpile medication and other emergency items. The delays have also seen an increase in crime at the border. In fact, there were 5,373 reports of HGV and cargo crime in the UK in 2023, according to NaVCIS, with an estimated cost of the loss in value from the thefts alone


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