Positive Logistic Solutions In An Uncertain Climate
Affordable solutions for companies who need to keep their distribution ties to Europe long after the UK has exited the EU.
At 11pm on Friday, 29th March 2019, the UK will be leaving the EU. Whilst this decision and the subsequent process of Brexit has been the subject of headlines for over two years now, its impact is felt significantly in the logistics industry. The sector relies heavily on cross-border operations with countries within Europe, so the decision to quit the EU has created much uncertainty for businesses who rely on logistics for the smooth transportation of their goods. What exactly does Brexit mean for those who require deliveries to Europe and what are the solutions?
Loss Of European Workers
An estimated 10% of the UK’s commercial haulage vehicles are driven by EU workers. One of the bonuses of being part of the EU was the Freedom of Movement policy, which allows EU citizens to live and work in any other EU nation. However, once we have officially left Europe, then a large number of UK truck drivers will be forced to leave the UK. As the logistics industry already has a shortage of drivers, this further loss will be quite a hit. It’s likely that wages will go up in a bid to attract more British drivers to plug the gap. However, the extra money to pay for these drivers will need to come from somewhere and will likely be passed down to customers across the sector.
The Cost Of Customs And Border Control
Similarly, another aspect of Brexit that may cost the logistics industry is related to border crossings. Currently, the Schengen agreement largely allows vehicles to pass between borders without checks or being stopped. But when we leave the EU, there will be much tighter controls between the UK and our European neighbours. A fantastic example of this can be seen in the border between Northern Ireland, and the Republic of Ireland which is an EU state. When we exit, this crossing alone is expected to cost businesses billions every year.
Positive Solutions For Customers
But of course, where there are perceived problems in the logistics sector, there’s also the potential for solutions. And some logistics companies are working hard to put their customers first, considering how they can bring down the cost of goods transportation within the uncertain economic and political climate. A great option for smaller businesses who need to distribute across Europe is to use part load transport services. These are ideal in a situation where a company doesn’t yet have the requirement to fill an entire vehicle with their order. If you only need to send a few products, then you can take advantage of groupage transport which means that your goods will be sent alongside those from other companies, and you’ll pay only for the space you use within the loaded vehicle.
You’ll still be able to offer next day deliveries, or other specific requirements, as well as utilising integrated warehouse and fulfilment services, which ensure that the goods can be dispatched shortly after an order has been placed.
While the future of the UK after Brexit is uncertain, as much in the logistics industry as in other areas, small businesses still stand to do well out of the European market, so long as they stick with haulage companies that are forward-thinking and make the best out of the new market.