To the Brexit Challenges, You Can Add One More

In the middle of a sanitary crisis, things that need urgent attention keep coming up. Right now, priorities for logistics industries are focused on distributing food and medical supplies. In the UK, this has not been different. Logistics companies have found themselves trying to cover up supplies demand while battling with the Brexit tenders. This has led companies to ask the government for a delay in implementing post-Brexit measures.

A report made by Deliotte mentions that Brexit impacts significantly the logistics sector as this involves delays at ports, mandatory border checks, availability of drivers and their ability to operate and ability to process the required paperwork. While many businesses were already structuring plans to reduce the impact, the COVID-19 pandemic rearranged this to the point of forcing them to seek for help on delaying the departure plan of the UK from the EU.

Representatives from the road, rail, sea and air industries are holding talks with the government to ensure the proper distributing of basics and the survival of logistics companies that were going to be affected by the Brexit transition period. Elizabeth de Jong, Policy Director of the FTA has stated that “logistics is facing unprecedented challenges, both in terms of keeping the UK economy supplied with all the goods it needs to function, as well as coping with the increased disruption to staffing levels caused by sickness and self-isolation and concerns about the viability of businesses.”

Business Wire enlisted the challenges for the logistic industry during the Brexit transition process, which include reduced trade as the UK exports half of its production to the EU countries. This could lead to a decline in demand for road haulage even if the rate of export remains unchanged. Stricter border control could also generate barriers mostly for the administration of trade in both sides, meaning a slower flow for logistics. Migration control could mean less EU citizens working for UK-based companies, which could generate a major impact on road haulage as it relies heavily on drivers belonging to other EU countries.

Logistics companies already had to worry about keeping up with daily regulator announcements, ensuring strict systems and procedures to manage different volumes, applying for licenses and exploring markets to have better understanding of deals, preparing for disruptions and identifying key client commitments. Now, they can add the urgent need to restock supermarkets and other stores in case Europe boarders close due to COVID-19.