Brexit and logistics

Brexit is already a reality. In addition to the consequent restructuring of trade relations between the United Kingdom and the European Union, which will particularly affect the international freight transport sector.

Since the recent 30 March, negotiations between the two sides have been in a transitional period, scheduled until the UK’s effective exit established on 31 December 2020, when single market rules will remain in force.

Brexit and logistics: Although the markets between the United Kingdom and Europe will remain connected, transport and logistics companies are waiting for negotiations, waiting to take the necessary adaptation measures.

Whatever the situation, there is no doubt that the United Kingdom’s exit from the European Union will affect the continuity of trade and transit relations between the two sides.

Read on to learn more about the consequences this phenomenon will have on the logistics and transport sector.

How will Brexit affect freight transport?

The consequences of the departure of the United Kingdom from the common European space will inevitably lead to trade changes in economic, administrative and customs terms.

As for the economic aspect, after the referendum result, the pound suffered immediate fluctuations, experiencing a devaluation of the currency in relation to the European currency. This fall in the value of the pound could mean that the United Kingdom would be less able to purchase products from the European Union.

Since the new transactions will be regarded as extra-Community, additional duties and charges will have to be applied, which will lead to an increase in the price of the goods to be introduced into the British market.

On the other hand, at an administrative level, the transport of European goods on English soil, now outside the EU, will most likely involve more bureaucratic formalities, such as permits, licences and traffic and export declarations that allow logistics and transport companies to operate properly.

Customs requirements will therefore be increased, with new controls being imposed on lorries, partly also due to the UK’s concern about terrorism and the increase in irregular immigration to its country.

All this will be reflected in a slowdown of the land transport fleet as it passes through customs. This loss of time will reduce the effectiveness of transport operations and will increase costs. It is even feared that kilometre-long queues will occur in the English Channel, the passage between the mainland and the island.

We can only hope that the agreements between the United Kingdom and the European Union will be concluded, and transport and logistics companies will be able to face the new rules with as little risk as possible, being able to adopt the necessary adaptation measures, as well as guaranteeing competitiveness under conditions of fairness and equal opportunities.

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