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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