Freight Forwarder Implications of Brexit

  • Freight Forwarder Implications of Brexit
July 21, 2016 | More from Blog, Cargocare News

The Freight Transport Association (FTA) in the UK is one of the main representative bodies of logistics companies in that market and it has recently documented what it considers to be the top ten issues facing the industry in the light of Brexit. The organisation has put the list together with a view to using it as a basis to influence government policy in the coming months, in order to protect the interests of the industry. As a freight forwarder, Cargocare has a keen interest in these considerations.

The Guide lists the issues as follows

Access to the EU market is a major issue, especially in the light of the fact that British trade with the EU is worth £360 Billion. A number of countries outside the EU have an array of different arrangements to facilitate trade but at present what the arrangements for the UK will be are completely unknown. And uncertainty is unwelcome so this is a critical point of negotiation.

Border Controls is another pressing concern. At present Calais is a main focus of migrant controls and security issues – will this responsibility land on the doorstep of the UK? Will France allow migrants to leave the country with no controls as the UK will be responsible to manage and control its own borders with the EU?

Customs is another significant consideration; what now? What will be the requirements for importers and exporters in terms of paperwork, charges, controls? The freight forwarder and other companies like Cargocare will need to know what these new practices will be.

Domestic legislation will need to be developed to replace the significant amount of pertaining EU Directives and other legislation that applies to logistics at present. Will the new legislation largely reflect existing EU rules or will there be radical changes?

Enforcement and the impact of possible delays while border checks are being done and paperwork assessed have the potential to cause long delays and traffic queues; which could be very costly to the logistics sector, and ultimately the end-consumer.  It’s essential to avoid these types of delays so clarity on the documentation needed is critical.

Fuel taxes have a significant impact for logistics companies and the Chancellor has suggested an increase may be forthcoming in Autumn. The FTA has done research that demonstrates that reducing fuel tariffs would stimulate activity and this stimulus will be needed given the tougher  competitive environment we are now facing.

Global Markets will need to be a focus of economic activity going forward, as the UK seeks do more trade beyond the EU. However this will require more capital investment in infrastructure. The larger container ships don’t come very frequently into UK ports and more expenditure is required on the ports as well as rail and road links, to encourage this trade.

Heathrow needs to be expanded urgently. Currently operating at full capacity, this air cargo hub needs to be able to facilitate more activity into the future, as connectivity is going to be more important than ever. Heathrow needs to be developed into a world-class facility that keeps the UK as a centre for logistics activity.

  • Ireland obviously shares a land border with Britain, in Northern Ireland, and this means that there
  • is a risk that the burden of paperwork for Irish exports and imports traveling through the UK and
  • onto the EU could be excessive. The FTA is suggesting that as this is a unique situation that some
  • allowances are made in this context and a special agreement is drawn up to simplify logistics
  • documentation in this regard.

Join the FTA is a natural call for action on behalf of the trade association and it points out that all businesses operating in logistics will be affected considerably by Brexit.

Cargocare – Freight Forwarder Services - UK & Ireland

In business for more than 30 years, Cargocare operates in both the UK and Irish markets and we have logistics facilities in both regions. We operate daily collection and express freight delivery services throughout Ireland and the UK, with departures from London, Kettering and Bristol to Dublin and from Dublin to the UK. As a family business we value and are committed to delivering a user friendly, efficient and hands-on service. If you want to discuss your freight forwarder requirements, we’d love to talk with you, do contact us now.