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brexit logistics

5 Ways Brexit Affected The Logistics Industry

As the UK departed from the European Union, many industries were concerned for what impact this would have on their operations. Undoubtedly, all working within the logistics industry had and still have big concerns about the effects Brexit has had on logistics operations in and out of the UK. Although we are still very much navigating the process of Brexit, here are 5 ways Brexit has affected the logistics industry so far… 

Administrative Burdens 

There was no question that when we left the EU, exporters and importers within the UK would have to deal with a number of additional hurdles when dealing with countries within the EU. This includes a range of new administrative burdens and expenses such as: 

  • Documentation for transport to carry goods in and out of the EU. Drivers will now be expected to carry much more documentation in relation to the vehicle they are driving, including their insurance documents and confirmation that their vehicle has been approved to cross borders. 
  • Since leaving the EU, goods may now need to be certified to enter an EU country. This means individual companies must be aware of what their goods require in order to be moved from the UK to the EU. 
  • Goods from the UK must now be labelled correctly, indicating that they are arriving in the EU from the UK. 
  • An EORI number is also now required to move goods between the UK and EU.

Regulations and Requirements from Individual EU States

Even within the main structure of the EU, we now face dealing with inconsistent rules and regulations from individual EU states. Thus making the process of moving goods in and out of the EU even more complicated, as companies have to contend with terms and conditions from individual countries. 

VAT Increases 

Of course one of the key impacts Brexit has had on the industry is the costs. Price of shipping increased as import VAT is now being charged on items over a value of £135. This in turn has led to many businesses either having to raise the price of goods or charge their customers on arrival of their items. 

Difficulties Hiring Staff

Since so many EU nationals have returned home, both as a result of Brexit and the Covid-19 Pandemic, many companies within the industry have experienced difficulties filing vacancies. The industry is already experiencing a loss as the population of drivers ages quite significantly, with little interest from younger generations. The lack of staff is only going to have greater impacts on the industry, as demand from consumers continues to grow. 

Backlog Within Supply Chains

The backlog many experienced in the first stages of our exit from the EU, created huge issues for major supply chains. Many of which had and still are experiencing backlogs. This has resulted in a number of delays and lack of goods for the likes of supermarkets and pharmaceutical companies. 

How Can DeliveryApp Help?

Whilst the effects of Brexit on logistics are still being felt, there does appear to be some light at the end of the tunnel where new innovations have led to a much-needed shift in the industry. Sometimes the ignition of a revolution needs to be sparked by a deficit, and this is what seems to be the case here. Technological applications, such as DeliveryApp, provide a mechanism to minimise the supply chain shortfall with an agile solution and a widespread driver network.

The future of logistics looks to continue in this vein, as mentioned in Helen Wong MBE’s recent book, ‘Doing Business After Brexit: A Practical Guide to the Legal Changes’, regarding what to watch out for and what’s next in a post-Brexit and pandemic world where the “Availability of new and enhanced delivery options for products, items and courier services will accelerate with the rise of platforms such as the exponentially growing DeliveryApp.”

Despite the gloom and doom experienced over recent years, it seems the future does indeed look very bright for the future of the logistics industry.

Written by Tom Glover

Tom

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