Is Your Freight Prepared for Brexit?

Aren’t you getting frustrated listening to different scenarios about Brexit every day? Brexit is around the corner and we still do not have a clear picture on what is going to happen to UK and the world after the 29th of March 2019. Logistics is an industry that has adapted to economic and political changes throughout the years.

So, why do we worry about Brexit?

Is the fact that United Kingdom will leave the EU, with or without a deal, so important that will change the landscape of the global supply chain services forever?

It is true that 40% of freight being lifted and moved within the UK, has a non-UK origin or destination. That means, that the UK is quite a determinant for the global logistics industry.

Currently there are two scenarios on the table of the European Union. The first one is the deal scenario according to which UK leaves EU while maintaining its access to the single market, but with some limitations mostly on the free movement of labour. If this deal between the two parties occurs then UK will remain in a single custom market with the EU, meaning that there will be no tariff exchange for the import and export of goods.

The second scenario is the one where the UK leaves EU without a deal. In this case, a policy of charged customs will apply to the UK and EU. In other words, in each border, custom tariffs will be charged according to World Trade Organization (WTO) agreements.

Both scenarios could be beneficial or harmful for both sides. So, the question is how you overcome all the challenges and create advantages for you and your business.

Aren’t you getting frustrated listening to different scenarios about Brexit every day? Brexit is around the corner and we still do not have a clear picture on what is going to happen to UK and the world after the 29th of March 2019. Logistics is an industry that has adapted to economic and political changes throughout the years.

So, why do we worry about Brexit?

Is the fact that United Kingdom will leave the EU, with or without a deal, so important that will change the landscape of the global supply chain services forever?

It is true that 40% of freight being lifted and moved within the UK, has a non-UK origin or destination. That means, that the UK is quite a determinant for the global logistics industry.

Currently there are two scenarios on the table of the European Union. The first one is the deal scenario according to which UK leaves EU while maintaining its access to the single market, but with some limitations mostly on the free movement of labour. If this deal between the two parties occurs then UK will remain in a single custom market with the EU, meaning that there will be no tariff exchange for the import and export of goods.

The second scenario is the one where the UK leaves EU without a deal. In this case, a policy of charged customs will apply to the UK and EU. In other words, in each border, custom tariffs will be charged according to World Trade Organization (WTO) agreements.

Both scenarios could be beneficial or harmful for both sides. So, the question is how you overcome all the challenges and create advantages for you and your business.

At Haulystic Innovations, each time we assess the situation and create a plan with different alternatives so we can make sure that your products will arrive at the final destination without any delay. For instance, if there is a congestion at ports or roads, we will research on the best option and recommend an alternative that is in alignment with your requirements.

Last but not least, the one certain impact of Brexit on the logistics industry will be in the area of employment. Currently, at the freight and logistics industry, there are at least 2.9 million people employed, including only the distribution and warehouse staff. Moreover, there are at least 400,000 available workers from EU while it has been stated that the UK has a shortage of 50,000 HGV drivers.

In a “no deal” scenario, the Government has guaranteed the protection of the rights of EU citizens living in the UK. However, you have to research on initiatives that protect the rights of your workforce. We work closely with organizations such as Migration Advisory Committee, in order to have a better understanding on how post-Brexit will affect our workforce, and we try to consult and offer support to all our employees so we can handle your delivery faster and more effectively.

The impact of Brexit for freight forwarders and logistics companies will be determined by the specific arrangements for border management. The degree of access to the single market will resolve all questions and determine the custom tariffs, procedures and documentation for importing and exporting products at the EU border.

The one thing that we can do right now is to prepare our business and prepare our clients for a smooth transaction to a post-Brexit period with or without a deal.

We can do it together!

Work with Haulystic Innovations, so you can get up to date information about Brexit and customized logistics services for your products.

Start by booking your shipments online.