There was never any doubt that the UK’s departure from the European Union would have a huge impact on the logistics industry. As we adjust to new rules and regulations surrounding the import and export of goods from the EU into the UK and vice versa, what has the impact already been on the logistics industry? Courier service, DeliveryApp have offered some insight.
Challenges in Administration Processes
Facing administrative challenges was always going to be a concern for the logistics industry when the Brexit transition period began. Having to deal with a number of additional rules and regulations has meant adjustments have already been made within the industry. These include:
- Understanding which documentation a driver is required to carry with them when completing their journey between the UK and an EU state
- Labelling goods correctly according to new laws
- Checking whether certain goods are now authorised to enter certain countries within the EU from the UK. This may have now changed
Increased Costs
On top of administrative nightmares, another challenge Brexit has thrown in the way of the logistics industry is the increase in costs to import and export. These costs include increases in VAT for shipping rates and companies incurring freight costs. The introduction of these additional charges has meant many companies within the logistics industry have seen an increase in costs.
Staff Shortages
On the other side of the Brexit process, many companies have found themselves struggling to hire. This has particularly affected the haulage companies who have lost many of their reliable drivers to Brexit, as they return home to their native EU countries. Because of this, they are struggling with staff shortages and a lack of interest from the younger generation for a career in the logistics industry.
This lack of staff has already led to a number of issues for the industry, including a backlog of work and delays in supplying their clients with goods. You may have even noticed gaps in stock and empty shelves in your local supermarket.
Increase in Transit Lead Times
Unfortunately for everyone, the logistics industry has seen great increases in transit lead times. This means the time it takes to complete deliveries between the EU and the UK has increased. This is mostly due to the amount of paperwork now required to move goods between these countries and border delays.
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