With the ever-lasting talks of Brexit, it is still unclear as to exactly what it will mean for UK logistics. However, there are a few things that are likely to change that you might want to watch out for.
Reduced Trade
Around half of the UK?s exports go to countries within the EU and the vast majority of these are transported by road haulage. Once Brexit is finalised, it is likely that the amount of trade we do with other EU countries is going to see a decrease, which in turn means a decrease in demand for road haulage going from the UK.
All businesses in the UK who work in the logistics industry, specifically those working with road haulage, should prepare to see a decrease in exports. If your business currently does a lot of exporting, this could have a serious impact unless you are able to plan ahead and make suitable adjustments.
Stricter Border Controls
Brexit is very likely to bring about stricter border controls, and with that, longer waiting times. It is expected that it will take on average, 2 minutes longer per vehicle for checks to be carried out. This doesn’t sound too drastic, but a report carried out by DHL suggests that this could lead five-hour queues on roads leading to the port and channel tunnel.
If your business?s delivery line has any need to pass the channel post-Brexit, it’s essential to be aware of the extra time it will take and to let everyone know beforehand that deliveries may slow.
Increased Migration Control
A post-Brexit UK is likely to see limited migration, translating to fewer EU citizens being able to work in the UK. Currently, just over 10% of commercial drivers in the UK come EU countries. If this number decreases due to Brexit in the future, then it could lead to a shortage in drivers.
If so, businesses will need to make sure they’re able to rehire from the UK in order to cover a lack of EU workers ? otherwise, the logistics industry could face a huge problem.
Although Brexit is likely to take a toll on UK logistics, there are ways to reduce those impacts ? we?ll cover that in a future newsletter, so stay tuned ? especially for businesses who operate mostly just within the UK. It will mean that logistics companies need to get innovative and look to plan effectively for the future.
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The logistics industry has been around for a long time, and it’s certainly not going anywhere any time soon. From figures about employment and industry size, to Brexit affects, in this article we are going to explore some interesting facts about the logistics industry and how it impacts our world.
It is one of the largest industries in the world
Although it may not be a shock that the logistics industry is huge, the actual size and value may well surprise you. Worth over $12 trillion per year globally, it’s safe to say that this industry is crucial in the world?s economy and in generating revenue for countries all over the globe. The logistics industry is spilt into many sub-categories, however trucking alone accounts for 43% of the industry, meaning that it generates around $5.16 trillion per year! That?s an unimaginable amount of money generated by one sub-section of one industry in the world!
That doesn’t mean it’s stopped growing yet
Despite the huge size of this industry, it is predicted that it is going to get even bigger over the next ten years. It?s hard to imagine that an industry generating over $12 trillion yearly is expected to grow by another 21% over the next decade. Due to increasing demand for products and the need for more and more food to feed an ever-growing population, the logistics industry will need to expand in order to keep up.
Transport and Logistics doesn’t produce as much CO2 as you?d think
Due to the amount of vans and trucks you see, and the fact that nearly everything you ever buy is transported on a truck at some point, you?d think that the logistics industry would produce a good majority of CO2 emissions from transport. You?d be wrong. In fact, trucks produce 23% of the total emissions coming from transportation, whereas cars and motorcycles contribute 57% – more than double!
Due to Brexit, trucking emissions may even reduce in the near future
As a result of Brexit, fuel prices in the UK are likely to increase. This means that the cost for transporting goods and running trucks over long distances is also likely to increase. In turn, the UK will look to switch to renewable fuel sources that are cheaper in the long run and that will help the UK to become more environmentally friendly. With the government likely to introduce incentives to switch to things such as electric powered trucks, it is likely to boost the amount of green transport, and rapidly reduce the level of emissions produced by the trucking industry.
There?s still a lot of job demand in the industry
Currently, there are over 2.3 million people employed in the logistics industry in the UK, equating to over 8% of the total UK workforce. Surprisingly, there are still a huge number of vacancies within the industry that need filling. According to Youth Employment, there are over 735,000 job roles that are available within the logistics industry. If they were filled, that would lead to a 33% increase in employees, in an industry that is already so big. It?s therefore very important that this industry is promoted in order to get more workers to support the intense demand, not to forget the predicted 21% increase on top of the current industry size.
In order to cope with current levels, as well as future increases, the UK needs to ensure that many more people opt for careers in the logistics industry in order to avoid a drastic shortage in workers, which could prove badly for UK logistics as a whole.
Although we?ve only touched on a few aspects of the logistics industry, you can already begin to see the incredible size and importance that it has in our world. Without the transportation of goods, not only would no products be moved, but the global economy would lose out on trillions of pounds. We are excited to watch the industry develop, continue to grow and to help keep the transportation of goods safe.
Beginning on the 19th of October, it’s Sustainability Week, aimed to raise awareness for the environment and get people to ask themselves: are we being as sustainable as we could be? So, we thought we?d point out a few ways that the logistics industry could focus on being as sustainable as it can!
What things can be done to increase sustainability in logistics?
Reduce Idling Time of Trucks
One of the simplest things that truck drivers themselves can do is to concentrate on reducing the idle time of their truck engines running. If there are any long stops, or waits for checks, then the engine should be shut off. This will save fuel that would otherwise be unnecessarily burnt, and in turn reduce carbon emissions. In addition to this, truck drivers should use their electrification systems to heat their trucks at truck stops, rather than switching their engines on.
Trucking companies can also work on educating drivers about this so that they are aware of this and can work on doing it more often.
Optimise Routes
Companies who are transporting goods over longer distances can optimise the routes that they’re travelling, in order to reduce the fuel that is burnt. By ensuring that drivers are taking the shortest and easiest routes, with the least inclines, less fuel would be burnt. Over a large number of journeys, this saved fuel can not only lead to huge savings for logistics companies, but also huge carbon emissions savings too.
Collaborative Distribution
Transportation companies can consider collaborative distribution, which would ensure that deliveries going to the same or a similar destination are transported on the same vehicle. This would help to reduce the number of journeys that are made, as well as the amount of empty space in trailers. In turn, this too would help the logistics industry become more sustainable as less overall journeys would be made, and less CO2 would be emitted.
Keeping Trucks Up To Date
Another relatively easy way for logistics companies to become more sustainable overtime is to simply keep their truck fleets updated and modern. With constant advancements in engine technology, and even the introduction of electric trucks, all new versions will be more fuel efficient and environmentally friendly. Although it adds a larger initial expense for companies when purchasing newer vehicles, over time it will be a cost-effective method to operate as it will lead to huge fuel savings, lower road taxes and fewer break down costs.
By planning effectively and carrying out environmentally friendly practices like those mentioned above, logistics companies can ensure that they’re continually becoming more sustainable. Given that the logistics sector is one of the largest in the UK, it would lead to huge overall benefits for climate protection and a sustainable economy that can continue long into the future.
