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Tag: brexit

Exporters report ongoing post-Brexit challenges

Posted on by David Priestman

Research from DHL Express following a 2021 study reveals mixed perspectives among small and medium sized British exporters for the remainder of the year, with one-third of those who export or plan to (33%) feeling the outlook for their business is more positive for 2022, with the remaining disagreeing (30%) or undecided (37%).

Reflecting on the time since the UK’s exit from the EU, businesses we surveyed report ongoing challenges and concerns since the departure, including volume of paperwork (45%) and complexity of regulations (50%). Despite the challenges, 60% of those who already export from the UK or plan to in the future agree that exporting goods outside the UK will continue to be a priority for their business in the future. This represents an increase from 51% of businesses surveyed one year ago.

More than a third (34%) of exporters or businesses planning to export state that the US is the market of most interest or likely to be most beneficial for their business if the government was to secure a new or enhanced trade deal.

The research is a follow-up to a study conducted one year ago and looks to explore the challenges facing small businesses across the UK. Nearly three-quarters of SMEs who export or plan to export in the future (72%) agree that Brexit has increased their costs of doing business, with over a third (38%) who already export or plan to, remaining concerned about a lack of awareness among consumers and customers about the additional import costs payable. Despite this, only a quarter of the SMEs surveyed (28%) have proactively alerted customers to the potential customs, VAT charges and shipping costs.

Ian Wilson, Chief Executive at DHL Express UK, said: “It’s been just over 18 months since the UK’s exit from the European Union, and this latest piece of research makes clear that businesses are still facing a number of challenges and are in need of support to help them navigate the changes.

Nonetheless, it’s encouraging that small and medium businesses are still continuing to prioritise exporting outside the UK, which shows a great deal of resilience through what has been a difficult time. As we look ahead to the rest of 2022 and the years to come, we hope to see more trade deals that smooth the path for global growth, and we’ll continue to support the small business community to help them thrive in a post-Brexit world.”

£9bn per year: the “real cost of Brexit”

Posted on by David Priestman

ParcelHero has weighed up the cost of EU membership versus lost EU exports since Brexit. Forget extra money for the NHS. It says Brexit has cost the UK 9bn a year.

Remember the Brexit bus promise: ‘We send the EU £350 million a week. Let’s fund our NHS instead. Vote leave’? The truth is that quitting the EU means there is £173m a week less to spend on the NHS, says the international delivery expert ParcelHero.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: “Far from saving money, the UK is poorer by £9bn a year, or £173 million a week, after leaving the European Union. Comparing the cost of membership to lost EU export trade, Britain is considerably worse off post-Brexit.

“ParcelHero has studied the latest Office for National Statistics (ONS) data and compared the UK Government’s annual contributions to the EU versus lost EU exports. Examining data for 2018, the last year before pre-Brexit preparations skewed data, and comparing it with 2021 figures, far from bringing in £350m a week to lavish on the NHS, the UK as a whole is £9bn out of pocket.

“The UK Government was scheduled to pay £20bn for its membership contribution to the EU in 2018. However, the UK’s negotiated annual rebate (officially known as the ‘Fontainbleau abatement’) of £4.5bn reduced the cost to £15.5bn.

“Additionally, £4.5bn came back to the UK in credits for programmes such as the EU Agricultural Guarantee Fund (£2.2bn) and the EU European Regional Development Fund (£0.7bn).  Given these figures, the ONS says that the UK Government’s net contribution to the EU – that is, the difference between the money it paid to the EU and the money it received – was £11bn in 2018.

“Compare this to the loss in exports to the EU. The ONS reported that UK exports of goods to the EU fell by £20bn in 2021, compared with 2018, the last period of stable trade.

“Even if we subtract the true (£11bn) cost of EU membership for 2018, from the £20bn drop in EU export earnings, UK plc is still £9bn poorer than it was in 2018.

“In January 2021 alone (the first month of Brexit), the value of goods exported to the European Union fell from £14.3bn in the previous month to £7.8bn.

“The Brexit Opportunities Minister, Jacob Rees-Mogg, said in February that Brexit is ‘already a success’ and ‘the evidence that Brexit has caused trade drops is few and far between’. If the Brexit Opportunities Minister wishes to retain credibility with the business leaders he is supposed to serve, he could do worse than read ParcelHero’s in-depth analysis of the ongoing UK-EU trade problems and, in particular, the Northern Ireland Protocol agreement, which he can read by CLICKING HERE.

 

 

 

Descartes helps Dover Hamilton with Brexit challenges

Posted on by Keith McKinley

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, is helping customs clearance agent Dover Hamilton Ltd’s customers navigate post-Brexit EU customs complexities and grow their business with Descartes’ e-Customs.

Established immediately after Brexit in January 2020, Dover Hamilton has put together a team with expert knowledge of new Brexit regulations, customs clearance processes, procedures and compliance – many of whom closely monitored the changes as they were drafted and published by Government lawmakers. In the last 18 months, the company has grown into an international organisation with three branches across the UK and Europe.

Following the UK’s decision to leave the EU, Dover Hamilton identified an opportunity to work closely with its customers – predominantly small- and medium-sized businesses – to help them optimise their road freight import and export operations within the UK, whilst ensuring regulatory compliance at both origin and destination.

Descartes’ e-Customs allows Dover Hamilton to offer exceptional customer service and a high level of responsiveness for its clients.  Descartes is supporting Dover Hamilton further by providing the Pentant CSP Badge for imports and exports at non-inventory ports and Dover.

“We recognised that Brexit offered a business opportunity, specifically for road freight imports and exports with the EU,” said Monica Stefan, EU-GB General Customs Manager, Dover Hamilton Ltd. “Descartes’ e-Customs is a comprehensive, efficient and user-friendly platform for customs declarations.  It is highly flexible and is incredibly easy to train our customs agents on. One of the most valuable aspects for us is the ability to access it from a secure system when connected to the internet locally or through an encrypted laptop, as this enables us to optimise our customer responsiveness. The level of Brexit expertise at Descartes has been exemplary and has supported us in driving our business growth.”

“We’re proud to be supporting Dover Hamilton’s customs brokerage business as it continues to grow,” said Pól Sweeney, VP Sales UK and Ireland for Descartes. “Dover Hamilton spotted an opportunity in the market and has developed its expertise and knowledge to offer its customers an exemplary service in response to the market changes caused by Brexit – and is consequently thriving.”

UK/France row could sink British Christmas

Posted on by David Priestman

The spat over French fishing boat licences is set to create long delays on Christmas goods to and from the EU. Expect November customs chaos, warns ParcelHero.

The international delivery expert ParcelHero says France is preparing to step up checks on goods being transported to and from the UK through French ports. It warns the move will create long tailbacks and delay UK imports and exports in the vital pre-Christmas period.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T, says: “France and the UK are beating their chests at each other over the issue of fishing boat licences. The consequence of all this posturing could be the final straw for Brit’s Christmas this year.

“The French Government believes the UK has not honoured the terms of the Brexit deal over fishing boat licences. It is set to take unilateral action that will not only impact on Britain’s fishermen, but also dramatically slow customs clearance for Christmas goods at ports such as Calais.

“This is bad news for the UK’s hard-pressed retailers, manufacturers, logistics operators, and ultimately, shoppers.

“France’s Europe Minister, Clement Beaune, claims the only language Prime Minister Boris Johnson understands is ‘the language of force’. From 2nd November, the French Government says it will adopt ‘targeted measures’ including ‘the reinforcement of controls on lorries to and from the United Kingdom’.

“That means increased, more thorough, checks on goods bound to and from the UK. The French call the tactic ‘grieve de zele’ – effectively they will make their checks ‘overzealous’ in what amounts as a work-to-rule.

“Britain’s Environment Secretary, George Eustice, has responded by saying ‘two can play at that game’. He told the BBC this week that ‘we’ll reserve our right to do more things if France continue to press ahead with these threats’.

“ParcelHero is concerned any game of cross Channel tit-for-tat will further disrupt supplies of gifts and foods from Europe in the run-up to Christmas, as well as delay British exports during this vital period. Fishing boat licences are an important factor in the Brexit deal, but, proportionately, does the Government really want to threaten Christmas supplies still further and slow vital exports over the issue?”

ParcelHero’s in-depth analysis of the ongoing UK-EU trade problems and, in particular, the Northern Ireland Protocol agreement – currently the focus of new talks – can be seen HERE.

First shipment expected on ‘Brexit-busting’ route

Posted on by Keith McKinley

The Port of Poole, in Dorset, is anticipating its first delivery via a new direct shipping route from Tangier in Morocco. The route has been established by maritime and transport specialist, United Seaways.

A shipment of 100 freights of organic seasonal fruit and vegetables is shortly scheduled northbound. The route will now run once per week and largely comprise the transportation of dry and refrigerated freight.

The link cuts overall journey times on goods to and from the UK to fewer than three days, compared to more than six days via road. It will be used to encourage British importers to source fresh produce and other products directly from Africa, and export companies looking to enhance their southbound trade to Morocco and the surrounding region. Trade relations between the UK and Morocco have a long-standing history of over 800 years, and it is anticipated the link will further strengthen ties between the countries.

The route has been in planning for over two years and will help bypass post-Brexit traffic congestion and import procedures on goods arriving via Europe. It will also significantly reduce emissions compared to current logistic chains by road.

In addition, the fallout from the current pandemic has caused global supply chain bottlenecks, shortages and disruption to the shipping industry, with sharp increases to ocean-going freight rates.

Alongside its strategic logistics partners, United Seaways will be able to offer the new direct line with the most competitive rates, significant emissions reduction, full logistics services including road haulage, door to door services, custom clearance services and warehousing services as demanded by exporters and importers.

To offer this service and to overcome the present global supply chain disruption, current and future HGV driver shortages with the most competitive rates, United Seaways will shift from a RoRo service (unaccompanied cargo only) to RoPax service (accompanied cargo).

Captain Brian Murphy, Marine and Port Director at Poole Harbour Commissioners, said: “The Port of Poole has been working closely with United Seaways to get this ‘Brexit Buster’ service up and running. The service will provide a greener and more time efficient option for importers and exporters from both kingdoms and we look forward to receiving the first shipment from Tangiers shortly.”

United Seaways has also announced the appointment of Amine Laghidi as Board Member in charge of strategy, public affairs, maritime and foreign trade.  Laghidi’s career has led him to four continents where he held leading positions in the maritime, international logistics, finance, industry, infrastructures and energy private and public sectors.

These include senior roles at AP Moller Maersk Group and Colas/Bouygues Group, and agent representation of key multinationals in Morocco and Africa such as Jacobs Engineering’ JV with OCP Group/JESA and key global players in the agriculture and food sector.

He is currently a representative of the African and the Moroccan Business Associations including being President of the ASMEX-Rabat (Moroccan Exporters Association).

Drivers shortage fix “will please no one”

Posted on by David Priestman

Delivery expert ParcelHero is warning that the Government’s decision to allow just 5,000 foreign drivers into the UK is a compromise that has infuriated Brexiteers while doing nothing to plug the shortfall of 100,000 drivers.

The Government’s faint-hearted decision to grant just 5,000 temporary UK visas to foreign lorry drivers will do more harm than good, warns ParcelHero.

The delivery company’s Head of Consumer Research, David Jinks M.I.L.T., says: “The decision to take the plunge and beg for EU-based drivers to return to Britain, but then cap their number at 5,000, will please absolutely no one. 5,000 drivers are less than the paltry number of poultry workers (5,500) the Government has also invited back because it couldn’t see a Christmas turkey shortage coming. Brexiteer ministers are foaming at the mouth at the news any EU drivers will be returning, while retailers and logistics bosses are howling that the move is far too little, far too late.

“Other panic measures revealed over the weekend, such as using Ministry of Defence examiners to increase HGV testing capacity, will also do little to fix the immediate problem. And the plan to send a million letters to former drivers who hold an HGV licence, begging them to get back in the cab, is frankly astonishing.

“The driver shortage has now led to a fuel crisis. The Government’s suspension of the competition law, to allow fuel companies to target specific petrol stations, is another sticking plaster that won’t stop the bleeding. Tanker drivers are the elite airline pilots of road haulage; these skilled drivers are trained and tested continually. You cannot let a newly-qualified lorry driver take over the wheel of a petrol tanker, especially after the Government recently dumbed down the HGV driver’s test.

“After most ‘non-skilled’ EU citizens returned to their home countries in the wake of the Brexit vote, we warned the Government of a shortfall of up to 100,000 drivers. Those warnings fell on deaf ears. The UK’s entire logistics network is consequently on the verge of a major crisis. The Government may think it has stuck its finger in the dyke in the nick of time and stopped the flood of shortages. In fact, the UK’s supply-chain is now riddled with holes, and unless the Government makes the package to EU drivers vastly more attractive, Christmas shortages are now a certainty.

“We agree the driver crisis is not entirely a problem created by Brexit. There is a shortage across Europe, but Brexit has doubled the impact of the problem for the UK. Furthermore, the driver shortage is just the tip of the iceberg in terms of the impact of Brexit on the UK’s freight infrastructure.”

ParcelHero’s in-depth analysis of the ongoing UK-EU trade problems and, in particular, the powder keg Northern Ireland Protocol agreement, can be seen by clicking here.

UK businesses believe Brexit created data challenges

Posted on by Keith McKinley

More than half of UK businesses (54%) say Brexit has presented them with data access and management challenges, according to research from MuleSoft, an integration and API platform provider. This finding highlights that the challenges of siloed data and skills shortages are being amplified as businesses adapt their operations in response to Brexit.

However, these pains are not just being felt by UK businesses: 40% of German and 39% of French businesses also report that Brexit has made it more difficult for them to access and manage data.

These difficulties have helped fuel the supply chain issues that have prompted recent headlines around product shortages and availability. The findings also suggest that businesses may have a hard time navigating future regulatory changes. While there may currently be close regulatory alignment between the UK and EU, businesses’ inability to unlock and act on data quickly may limit their ability to respond to changes in the future.

“Brexit has laid bare just how underprepared many businesses are for the challenges around data access and management in an increasingly digital economy,” said Justin Wilson, head of UK&I at MuleSoft. “At a time when businesses need to be more agile than ever, the UK’s departure from the EU has made it harder for them to harness the data they need to do just that. There’s also the issue of skills shortages. While digital transformation is at the top of their agenda, the exodus of skilled IT professionals has left many businesses without the resources they need to deliver those projects.”

As businesses continue to adjust to the post-Brexit landscape, they urgently need a more agile approach to integrating data and delivering digital transformation. API-led connectivity will be key to this, enabling businesses to break down data silos and overcome borders, so they can quickly create actionable insights. For instance, APIs can be used to connect supply chain data between multiple stakeholders, so UK and EU businesses can achieve the visibility needed to ensure their products are available where they’re needed and mitigate disruption.

Better still, an API-led approach reimagines digital assets as a network of reusable capabilities that anyone can draw from. This enables a wider range of business users to compose their own innovations without IT’s involvement, improving autonomy, business agility and accelerating digital transformation.

“APIs help businesses to overcome many of the most pressing problems they face in the aftermath of Brexit, because they make the process of drawing disparate data sources together far easier,” continued Wilson. “This more flexible approach to integration also enables businesses to package their digital capabilities as a series of reusable building blocks. Not only does this make businesses more agile for change by removing the need to start digital initiatives from scratch, but it also helps ease the skills burden. Now, anyone within the business – not just the IT team – can draw on these pre-existing IT capabilities to drive digital innovation.”

Expert Customs overcomes Brexit challenges with e-Customs solution

Posted on by Keith McKinley

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that Expert Customs, a recently established customs agency based in Dartford (UK), is using Descartes’ e-Customs solution to enhance business operations with its UK-EU trade offering and provide customs compliance for customers.

“Following Brexit, we saw the demand for a smooth and efficient customs declaration process grow,” said Kasia Gancarz, Customs Clerk, Expert Customs Ltd. “We realised a great opportunity to provide assistance to other companies looking to import to the UK from the EU. After implementing Descartes’ e-Customs to help our Expert Joinery operations, we saw how straightforward the e-Customs solution made imports to the UK.

“With the continued and unparalleled support from the team at Descartes, we were quickly set up and able to implement customs clearances within weeks and offer a solution to other businesses struggling with navigating Brexit complexities.

“The solution is very user-friendly, the online training videos and step-by-step guides are detailed and easy to follow. We are looking forward to growing our customs business and continuing to work with Descartes as we offer both import and export solutions to our customers.”

Expert Customs is affiliated with Expert Joinery Ltd, an importer of windows and doors from the European Union. Expert Joinery first sought the help of Descartes for a particular shipment it was importing from Poland in February 2021. With many businesses struggling to navigate Brexit, often made more difficult with language barriers and the customs declarations required by HMRC, Expert Joinery quickly identified an opportunity in the market to support other small businesses importing to the UK.

Establishing itself as a professional customs agency with the help and support from Descartes’ e-Customs solution, Expert Customs now provides an essential service to other businesses seeking to overcome the challenges faced with importing goods to the UK following Brexit. Initially, Expert Customs was completing 250 declarations per month, rapidly increasing four-fold on projected volumes to 1,000 a month, as a result of the success of its newly established customs agency.

Pol Sweeney, VP Sales and Business Manager UK for Descartes, adds: “It’s very exciting and rewarding to support exemplary businesses such as Expert Customs to grow and prosper through using our e-Customs solution by providing effective and efficient technology to enable straightforward customs processes. It has been a pleasure working with Expert Customs to support its operations and help develop its offering for customers and we look forward to our continued partnership.”

 

‘Pingdemic’ exemption can save Christmas

Posted on by Keith McKinley

A toxic combination of the current HGV driver shortage crisis, post-Brexit immigration rules, an unprecedented increase in demand for transport due to a change in shopping habits, and the recent ‘pingdemic’, is steering the industry towards a potential ‘Perfect Storm’ this Christmas, says Emma Verkaik, Membership & Marketing Director of the BCMPA, the Association for Contract Manufacturing, Packing, Fulfilment & Logistics.

The requirement for fulfilment services continues to grow across a wide array of sectors, including clothing, electrical, personal care, healthcare, and entertainment, and whilst BCMPA members are coping well with it, it is proving to be much more difficult to guarantee delivery on time, or sometimes even at all. As one member commented, “90% of my problems today are based not on the operational side of getting the orders and boxes out of the door, but on deliveries; we work hard to provide efficient, reliable, quick turnaround of stock, only to find it misses the delivery window due to transport challenges”.

It is estimated by the Road Haulage Association that Britain is already short of around 60,000 lorry drivers. This deficit is being further increased by the effects of the recent pingdemic, with remaining driving staff being forced to self-isolate. In the week to 21st July alone, the number of self-isolation alerts sent by the NHS Covid-19 app in England and Wales rose by 70,000 to a new record of 689,313.

A recent demand to the government from the UK Warehousing Association for logistics staff to be exempted from the need for self-isolation if ‘pinged’ is an indication of how far reaching and disruptive the current pingdemic is becoming.

It is clear that something needs to be done and the BCMPA is calling for the industry and government to help effect immediate change, extending the exemption from self-isolation to workers in the contract packing and fulfilment industry.

The impact of these driver shortages is already apparent and is set be felt in very real terms across the wider economy. BCMPA members fear that if a rapid, effective solution is not found, the expected further spike in demand for delivery services during retail events such as Black Friday and a post Covid Christmas could prove to be a tipping point, with empty shelves in store and patchy D2C delivery.

An undoubted further consequence of this shortage is that, in addition to the difficulties and delays experienced, costs will rise too, as large supermarket chains seek to secure their own deliveries by increasing drivers’ salaries. As an example, during July, Tesco began offering a £1,000 joining bonus for HGV lorry drivers, putting further pressure on hauliers’ costs as they attempt to retain or recruit drivers. This will inevitably lead to wage rises, costs which the industry will be unlikely to continue to be able to absorb, leading to higher on-shelf prices.

The deep-seated nature of the problem is making it difficult to see an easy – or quick – fix. Yet in many instances, a quick fix is imperative, due to the perishable, or time-dependent nature of some commodities and the enormous hole in supply.

A real sense exists amongst BCMPA members that, without fast, decisive, and wide-ranging action Christmas is in trouble, and government, industry and all interested parties need to act now to make sure it is not effectively cancelled.

70% of businesses experience Brexit delays

Posted on by David Priestman

EU import and export delays are slowing the flow of goods between France and the UK according to a new tool from the French Chamber of Great Britain, in partnership with global data science consultancy, Ekimetrics. 70% of British businesses are still experiencing increased delays importing goods from Europe six months after Brexit.

Of those businesses experiencing import delays, 75% are seeing them last over a week, with over 18% reporting delays exceeding 3 weeks. With increased regulations and checks coming into force from 1st July, this impact may increase further, with over a quarter (27%) of businesses already reporting a reduction in the volume of their imports.

The French Chamber of Great Britain, which supports Franco-British business, commissioned the new tool to track the impact of Brexit on cross-channel business in the medium to long term.

The data shows that exports to the EU have also been impacted, with nearly half (47%) of firms experiencing delays in Q1 2021, with 22% of those delays lasting longer than two weeks.

Despite the delays, only 17% of firms said the volume of goods being exported to the EU had decreased, with the majority (71%) reporting it had stayed the same. For imports, 67% of firms have reported increased logistics costs, whilst this number was lower for exports, at 48%.

Meanwhile, the UK continues to have strong appeal, with 67% of firms stating that they have kept their UK headcount the same with just over one fifth (21%) of businesses reducing their UK workforce and extending into the EU.

Marilise Saghbini, Managing Director at the French Chamber commented: – “This dashboard will help track the state of Franco-British business, particularly as the pandemic impact subsides, and provide data to help inform decision-makers as they shape the post-Brexit chapter. We can see there are challenges and potentially more to come, but businesses will continue to bring pragmatism to the table, underpinned by the depth and breadth of the Franco-British relationship, to build beyond Brexit and drive jobs and growth so desperately needed in the wake of Covid.”

Matt Andrew, UK Managing Director, Ekimetrics, adds: “Our data analysis reveals a unique window into the true picture of trade between France and the UK, equipping the French Chamber with vital real-time information, enabling it to make dynamic and informed decisions about the support it provides its members.”

The data forms part of a live dashboard created by Ekimetrics for the French Chamber of Great Britain, which monitors the impact of Brexit on businesses operating between France and the UK.

CLICK HERE to view the live dashboard.

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