Moving goods to the United Kingdom will become more complicated and more expensive once Britain exits the European Union, according to analysts and logistics operators.
Global media company and business analyst Forbes pointed out that once Brexit was in effect, the typical small-to-medium international shipper exporting to Britain could pay up to 30% more in added costs, taxes, red tape, duties and delays. An airfreight company from southern Africa – which sends several shipments to Britain – told FTW off the record that it seemed “inevitable” that global logistics companies and their clients would need to adjust their budgets for dealing with Britain in the future.
“Brexit will most likely lead to a rise in demand for specialised logistics companies and international logistics consultants who would be able to manage complicated and unfamiliar customs procedures as British businesses get to grips with life outside the convenient, EU-negotiated trade deals they’ve become so accustomed to,” he said. European representative of the GoGlobal Group, Tim Cotton, told FTW that Brexit would be a very important factor in the next 12 months, and while there were “many thoughts on this” the group would discuss further once the agreement had been ironed out.
“Personally, I have agreed to work with a group of companies within the supply chain sector to assist with any transitional change, but again we can only implement change when there is certainty about the changes,” said Cotton. This lack of clarity remains a bone of contention with transport operators as well as the UK logistics body, Freight Transport Association (FTA).
Deputy CEO, James Hookham, pointed out that the industry’s frustration with the lack of progress was building daily as logistics companies were unable to price for the period after March 2019 or answer basic questions from customers.
“The lack of progress on the industry’s key demands of government for a trade agreement means that those in the industry charged with maintaining the country’s supply chain after Brexit are left with no means by which to operate effectively,” he said, Hookham said that postBrexit changes in the container shipping market could mean that the biggest and most efficient container ships would call less frequently at UK ports, meaning goods would have to be transhipped from mainland Europe.
But Drewry Maritime Research said in a recent Container Insight report that container lines would continue to stop at Britain’s ports, despite a Brexit deal, though there might be an initial lull in global trade. UK prime minister Theresa May, along with UK minister of state for trade policy, Greg Hands, have both made it clear however that their strong relationship with South Africa would continue as Britain readies to leave the EU.
“I’m pleased to report that we’re making excellent progress in our discussions to ensure continuity of the regional Economic Partnership Agreement with SA, the other members of the Southern African Customs Union, and Mozambique,” said Hands.
