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Tag: brexit

Call for EU nationals to alleviate driver shortage

Posted on by Keith McKinley

If Ministers don’t act now, the UK HGV driver shortage could lead to food waste and inflation; Kate Lester, CEO and founder of Diamond Logistics, reflects on this urgent issue and issues a bold message for Government.

“According to the RHA, prior to the pandemic, there was a HGV driver shortage in excess of 60,000. That figure has now reached 100,000.

“Two years ago, as CEO of Diamond Logistics, I was invited to participate in an All-Party Parliamentary Group (APPG) alongside other representatives from logistics and transport to discuss the driver shortage, set to worsen as Brexit loomed. The RHA and I presented a petition to Ministers, asking them to address the problem urgently.

“Earlier this month I attended another APPG event – a roundtable discussion on the driver shortage led by Ministers Baroness Vere and Mims Davies – and I’m sorry to report, that despite the recommendations from the sector two years ago, very little progress has been made.

“It is critical now. We cannot recruit drivers, let alone fulfilment and ancillary staff. The South East [of England] has been hit particularly badly.

“Brexit and the COVID-19 pandemic has created the perfect storm. The magnitude of the crisis is now driving the discussion as a matter of urgency. The pandemic has also highlighted the vital importance of our logistics infrastructure and how essential we are. And you know what? We demand to be listened to.

“At the roundtable event, hosted on Microsoft Teams and attended by the Department for Transport (DFT), Department for Education (DFE), Department for Work and Pensions (DFWP), The Road Haulage Association (RHA), The Federation of Wholesale Distributors (FWD), Logistics UK, the DVSA and yours truly, we debated the topic and put forward our suggestions. I hope this time more action will follow.”

Catching-up on driver training

“Like everything else, vocational training of drivers stopped during the pandemic. The DVSA is pedalling hard to catch-up and has increased capacity to an average of 3,000 practical tests each week.

“Great effort, but there is too much of a lag for this to be cured within a reasonable time scale.

“Industry colleagues and I expressed support for utilising foreign labour in the short term to address immediate issues. However, it was highlighted that this would mean significant change to existing policy.

“Logistics UK suggested a short-term broadening of the seasonal worker visa for this summer for drivers (as an alternative to including drivers on the shortage occupation list).

“If we rely on British nationals alone, it will have a huge inflationary impact. Higher wages equates to higher logistics costs which will raise food prices. With inflation above 2% already, this is a big problem.

“The concept of simply extending driver hours is also not a long-term answer. Most drivers have been maxing out their hours in the last year. Many are exhausted. We need more people. We can’t simply expect less drivers to do more. It’s dangerous and unsafe.

“And let’s think about the driver as a person for a minute shall we? The facilities they have access to are abysmal. Where do we expect lorry drivers to eat, drink and sleep?

“DWP representatives referred to a survey of 1,300 drivers in which 68% said they would rather have a better work/life balance than a 5% pay rise. So longer hours probably won’t tickle anyone’s fancy and is likely to drive drivers away.

“The impact of the driver shortage is happening now. Seeds are expiring, waiting and missing planting times. Food isn’t arriving on time so shelves are increasingly empty. Celery for example will be in very short supply next year. This will get much worse.

“So what’s the next step in addressing the driver crisis?

“Earlier this week, and following the APPG meeting which didn’t fill anyone with confidence quite frankly, leaders in logistics and transport signed an open letter from the RHA to Prime Minister Boris Johnson.

“And here is our list of demands:

Access to EU and EEA labour. The introduction of a temporary worker visa for HGV drivers and for this occupation to be added to the Home Office Shortage Occupation List. DEFRA already have arrangements in place that support our harvest periods when foreign labour restrictions are eased for specific demand. The same principles should be applied.

Government needs to work with the industry to help address the broader issues around the skills shortage. We must work collectively to achieve a sustainable way of recruiting and training a homegrown workforce so that our reliance on foreign labour dissipates over time. We ask that a taskforce is immediately established to include representation from all of the relevant areas of Government and industry to help drive this change at the pace that is so desperately needed.

The DEFRA Food Resilience Industry Forum, chaired by Chris Tyas, helped to ensure the nation’s supply integrity throughout the pandemic. This was recently disbanded. However, in view of the growing crisis, it must be re-established at the earliest opportunity.

“Logisticians are problem solvers and practical thinkers. It’s what we do. I just hope our request for urgent sensible action on behalf of the profession are heard.”

 

Strengths and flaws in the EU’s new IOSS

Posted on by David Priestman

Beleaguered British retailers are braced for yet more changes to how they sell goods to the EU. From 1st July 2021, a new EU Import One-Stop Shop (IOSS) scheme means British-based e-commerce companies only need to register and pay VAT in one EU country to sell goods not exceeding £135/€150 across the entire EU. The new IOSS regulations certainly make retailers’ lives easier, but they aren’t entirely good news, says the international delivery expert ParcelHero.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: “On the face of it, the new IOSS scheme helps return things to their pre-Brexit norm. However, in the case of the IOSS, the devil really is in the detail. We’re revealing five reasons GB traders should welcome the new scheme and five reasons the IOSS might make selling to EU customers even more complicated and expensive.”

Five reasons to welcome the new IOSS

1 IOSS greatly simplifies VAT procedures by allowing non-EU online sellers (remember that includes sellers based in Great Britain post-Brexit) to register for VAT in one EU member state, collect VAT from all their EU sales and report on a single monthly IOSS VAT return. No more multiple VAT filings in multiple countries.

2 Life is greatly simplified for sellers using online marketplaces. These become the ‘supplier’ when cross border B2C sales are made on them by third-party sellers. VAT liability (collecting and reporting) for sales in EU countries will fall on the marketplace rather than the merchant, providing the consignment is valued at less than £135 (€150). Our top tip is that businesses using only online marketplaces may now be able to end any existing EU VAT registrations, as they will no longer be responsible for collecting and reporting VAT.

3 Retailers’ EU-based customers won’t be facing any more unexpected VAT payments on purchases of goods sold in Britain, which will build back trust in buying from GB sellers.

4 Northern Ireland-based companies may enjoy an exemption threshold. NI firms can join the alternative intra-EU OSS scheme. Providing their sales to the EU don’t exceed £8,818/€10,000 per annum, NI-based organisations will only need to follow domestic VAT rules.

5 The IOSS scheme is voluntary and will speed up sellers’ EU shipments by creating a fast-track Customs clearance ‘green channel’ for consignments not exceeding £135/€150.

Five flaws in the new IOSS

1 The changes remove the previous VAT exemptions for SMEs on EU shipments worth £19/€22 or under. That means about 26,000 UK e-commerce sellers will have to register for VAT for the first time or stop selling to the EU.

2 The EU estimates it will cost around £6,900 per company each year for British sellers (that excludes Northern Ireland companies) to register and comply with IOSS regulations as a ‘non-Union’ user.

3 Unlike EU-based OSS users, IOSS users based in Great Britain don’t qualify for the new £8,818/€10,000 threshold before they have to pay EU VAT, rather than follow domestic rules. Only Northern Ireland sellers (under the terms of the Northern Ireland Protocol) have this option.

4 The new IOSS only applies to deliveries of items valued under the £135/€150 threshold. For all goods over that amount, GB businesses will have three choices: ensure their customer pays the import VAT at Customs; offer the option of delivering with all duties paid (DDP) or hold stock somewhere in the EU and register for VAT there.

5 Confusion still exists around registration. The gov.uk website states: ‘…it is not expected that the UK IOSS registration portal will be available for use for the 1 July 2021 launch’. There is also uncertainty about whether GB companies signing up for IOSS in an EU country must appoint an intermediary agent to register and file returns. Together with the French and German governments, ParcelHero believes this requirement does not apply to British sellers, as the UK-EU trade deal includes a tax and VAT mutual assistance agreement. The Republic of Ireland is a favourite option for GB companies because it uses English in business but, just to complicate matters, it recently stated it doesn’t yet recognise the agreement. Consequently, it will require the use of an intermediary agent.

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 at: https://www.parcelhero.com/research/brexit-study

BIFA issues advice on Delayed Declaration Scheme

Posted on by David Priestman

The British International Freight Association (BIFA) is advising its members to be very careful with any business that they are offered from traders that have taken advantage of HMRC’s Delayed Declaration Scheme, but which have not taken out a CFSP authorisation in their own right and are now trying to find a Customs Agent to undertake the work required to complete the process.

BIFA Director General, Robert Keen, says that UK importers that took advantage of the scheme at the beginning of this year now have until 25th June to complete customs formalities for declarations delayed from early January, and many are looking for help from a BIFA member that has a CFSP authorisation to make a supplementary declaration under the scheme.

“We are reminding members that if they take on this work, it is their CFSP authorisation being used and they may have to pay any duties and VAT on behalf of the importer. So, it is essential that they ensure that their customers’ paperwork is in order and completely accurate, and if it is not, our advice is to not accept the responsibility.”

The UK Government introduced the Delayed Declarations scheme following the end of the Brexit transition period, giving businesses importing into the UK up to 175 days to complete their customs declarations.

Any business that took advantage of this opportunity at the start of January this year, now has a deadline of 25th June (or 175 days from the original import) to make the declaration.

Keen adds: “Whilst the Government has extended the scheme to defer declarations to 31st December 2021 on a rolling basis, it is important that any BIFA members undertaking this work on an importer’s behalf remains vigilant and ensures that they have all the information required to make an accurate supplementary declaration and that they don’t miss the first and subsequent deadlines.

“Any mistakes could be costly as, despite the ability to use direct representation, the authorised agent is still considered to be the owner of the procedure and responsible for a timely submission of correct declarations.

“Finally as payment will need to be made against the Deferment Account of the CFSP authorisation, we are reminding our members to consider the impact of potentially large sums that become due and the ability of the client to meet their obligations.”

Brexit: non-EU imports outstrip EU imports for first time

Posted on by David Priestman

Brexiteers may be celebrating the fact that EU imports to the UK were overtaken by non-EU imports for the first time, but international delivery specialist ParcelHero says that doesn’t mean Brexit is working. It just means non-EU imports to the UK have declined less alarmingly than EU imports.

As recently announced Government trade figures show that UK imports from outside the EU outstripped EU imports for the first time on record, Chancellor Rishi Sunak claimed a victory. He told the BBC that the Government had invested “hundreds of millions of pounds to help businesses adjust to those new trading arrangements and support them in the process”.

However, ParcelHero says these figures do not prove that UK importers are now discovering new products and trading partners in markets beyond the EU. Instead, they simply reveal that non-EU imports into the UK declined less alarmingly than EU imports.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: “New Government trade figures show that imports from the EU fell by £14bn to £50.6bn in the first quarter (January-March 2021) compared to the final quarter of last year (October-December 2020), before Brexit trading rules were imposed. Imports from non-EU countries also declined, but ‘only’ by £0.5bn, to £53.2bn.

“This means that – for the first time since Government records began in January 1997 – imports from beyond Europe were worth more than those from the EU. Brexiteers may try to claim this as a success, showing Britain is finding new trading partners and products from a wider range of countries; but this fails to see the full picture.

“EU sellers have simply turned their backs on the UK market. Just because non-EU imports declined less significantly than those from the EU does not mean consumers and businesses are benefiting from Brexit. Two negatives do not make a positive.

“As if the latest import figures were not dispiriting enough, British exports also declined significantly in the first quarter. The value of Britain’s exports to the EU fell a whopping £7.1bn to £32.2bn, compared to the last quarter of 2020.

“Why are these numbers so woeful? Last week, ParcelHero revealed that Brexit regulations are having a significant impact on British businesses. Over 39% of UK importers are struggling with new customs duties and 38.6% are battling increased transport costs. Exporters report similar challenges.

“It’s all because the hastily cobbled-together UK-EU free trade agreement is simply not fit for purpose. Under the deal, goods flowing between the UK and the EU that are sourced and manufactured in the UK or Europe don’t have to pay tariffs. However, how many products are entirely sourced and made in a single area in today’s world of global supply chains? The answer is very few. Electronics, for example, incorporate components from across the globe, while clothing can include materials from many continents.

“Any products unable to prove all their sourcing meets the new regulations are likely to be slapped with new duties. This has resulted in higher fees for UK importers as well as EU-based customers of UK exporters. In addition, transport costs are rising due to mounting delays and returns.

“However, there were some small, green shoots in the latest trade figures. Exports and imports both crept up by £2.3bn between February and March this year. Businesses and consumers alike will be hoping this could signal the beginning of a welcome increase in profits for exporters and more choice for shoppers.”

For more details on the increasing problems facing UK importers, CLICK HERE to see ParcelHero’s new EU-UK e-commerce report.

Green light for remote Border Control Post

Posted on by David Priestman

Following a delay of over three months caused by the pandemic, PML’s venture with FreshLinc to operate a remote HMRC / DEFRA approved Border Control Post (BCP) and ERT (bonded warehouse) facility has finally been given the green light and is now up and running.

Completed ahead of Brexit, the global perishable cargo specialist partnered with transport and logistics company FreshLinc to run the operation at Fresh Linc’s Spalding HQ, to enable a speedier movement of product from the ports and therefore delivering an extending shelf life of up to 48 hours.

The BCP which sits on a 70,000 sq ft site, should have been effective from 1st January 2021 and represents a £400,000 investment. The impressive facility includes a purpose-built 10,000 sq ft warehouse with the capacity to store 330 pallets and dedicated inspection areas for customs and DEFRA. Since this is a 24-hour operation, four new staff have been trained to ensure a seamless round-the-clock service.

The Spalding location is ideally placed for freight traffic coming out of Dover and Southampton docks and the move to set up a BCP away from the ports represents a solution to the delays and excessive queues which impede the onward movement of freight. For a company that stakes its reputation on the time efficient transfer of perishable cargo, PML was unwilling to risk the further disruptions anticipated post Brexit and therefore joined forces with Fresh Linc – with whom it shares a long-standing and trusted working relationship – to provide a viable alternative.

PML Sales Director, Nick Finbow, says: “It is unfortunate that the official opening of the facility at Spalding was delayed but of course, we are accepting that we are all working under exceptional circumstances. We are delighted that we can now offer our customers the benefit of a safe and speedy transfer out of the ports which should ultimately deliver a minimum of 24-48 hours additional shelf life on perishable goods with no break in the cold chain.

“As a business PML has always demonstrated forward thinking and is proactive in identifying innovative solutions to any challenge which threatens to impede its ability to deliver the effective, seamless service for which it is renowned.”

 

How retailers can beat Brexit difficulties

Posted on by Keith McKinley

Brexit may have been years in the making, but the uncertainty surrounding trade is still casting a long shadow for businesses in 2021, writes David Grimes, CEO of Sorted.

According to a recent survey, almost half (49%) of all UK businesses have found it more difficult to export to the EU since Brexit regulations came into effect. An increase in border checks and paperwork has only added friction to the process, making it more time consuming and costly for companies to send goods over to the continent.

Retailers in particular are facing a number of logistical challenges, including the delay of goods due to incorrect paperwork, or technical errors relating to tax declarations or item restrictions. These are disruptions that even the most prepared retailers could not have planned for, and many lacked the systems and technology to adequately deal with them.

In the weeks shortly after Brexit, some retailers such as John Lewis even suspended delivery into the EU altogether, citing new “complex processes” that were difficult to grapple with. Some couriers themselves also decided to pause road delivery services into the EU over concerns around paperwork and tariffs, adding to retailers’ problems.

Despite the impact Brexit turbulence is having on businesses, it’s important to remember that at the end of each delivery is a customer waiting patiently for an item they’ve paid for. With 1 in 3 customers saying they will leave a brand they love after just one bad experience, retailers need to up their game. To that end, the speed, condition and manner in which a purchase arrives, and the updates they receive during its journey, could have huge consequences on a customer’s decision to buy again with a brand.

Retailers, therefore, need to think very carefully about their supply chain model. With the post-Brexit delivery landscape still shrouded in relative uncertainty, pinning all hopes and expectations onto a single carrier service is bound to have unwelcomed consequences such as service failures, increased WISMO queries and a reduction in CSAT scores – all of which can severely damage a retailer’s brand.

The rise of multi-carrier shipping and distribution

In an effort to mitigate disruption, a growing number of retailers in the UK are already leveraging technology to manage and expedite multi-carrier delivery – enabling retailers to ‘spread the risk’ rather than have their entire operation depend on one single carrier service.

Instead of items being lost or returned because of one setback, a multi-carrier approach offers retailers the ability to adapt quickly to disruption and choose to re-route parcels via an alternative provider. At the very least, it gives retailers the opportunity to salvage the delivery journey to meet customer promise.

Brands such as Party Delights are using a multi-carrier approach to put the customer front and centre above all else, and to dramatically reduce the risk. If a carrier is unable to fulfil a delivery due to poor weather or problems with their fleet – or due to catastrophic disruption like we recently saw in the Suez Canal – an alternative carrier can pick up the pieces, ensuring CX is maintained. This is going to be a vital tool in an uncertain post-Brexit delivery landscape.

Preserving consumer trust and loyalty

This multi-carrier approach to order fulfilment might give retailers an edge when it comes to risk mitigation, but the challenges don’t stop there. UK ecommerce has always maintained a great dependence on the European market. Whether you’re selling a product to a buyer in Germany or importing merchandise all the way from Spain, the market in the pre-Brexit era was expanded for British retailers all over the European Union.

Now, Brexit has completely rewritten the rules and retailers all over the UK are experiencing the steady slowdown in terms of sales and revenue. As such, the online customer experience is in a state of near-constant evolution, with retailers and service providers are constantly ‘one-upping’ each other in their efforts to win and retain customers.

Over 43% of consumers are expected to shop more online than before the events of 2020, and if retailers are to take advantage of this influx of online shoppers they’ll need to offer a flawless customer experience. That includes paying close attention to each and every customer touchpoint, ensuring they have the infrastructure to cope with increased orders, and the capacity to adequately deal with any increase in customer queries.

An uptick in online purchases now means that the delivery journey is more crucial to the overall customer experience than ever before. Native online retailers – such as Amazon and Boohoo – have already had practice at getting this right and customer expectations are high, so retailers planning to move or increase their online presence will need to ensure their delivery journey is a 5* experience.

Customers expect real-time updates, messages, emails, delivery information, estimated times of arrival and more, including the ability to check on items, track packages and self-serve their queries. If retailers can leverage the automation technology needed to get this aspect of the customer journey right, they’ll see a marked improvement in CSAT scores and a massive reduction in call centre volume, easing the pressure on teams.

The importance of data integrity

An efficient multi-carrier operation with well-informed customers is only possible with clean, useful data. If a non-compliant parcel that lacks critical information is sent from a retailer to a carrier, it can throw up all kinds of unnecessary roadblocks at customs, particularly if the items are subject to strict regulation.

The seamless exchange of correct data in real-time is therefore essential in ensuring a smooth delivery process, even more so with exports thanks to the increased regulation around Brexit. Again, data integrity can be preserved with the use of technology, utilising everything, from validation codes, to mandatory fields, so the carriers get the correct information and border checks are as frictionless as possible.

Retailers of all shapes and sizes face a common challenge in the form of Brexit, but with the right technology in place and the adoption of a multi-carrier strategy, inevitable Brexit difficulties can at least be kept to a minimum.

Logistics firm gains early Brexit edge

Posted on by Keith McKinley

CPG Logistics Ltd, a long-established logistics services provider in the UK, is using Descartes Systems Group’s e-Customs solution to help its customers comply with post-Brexit customs requirements, including preparation for further Brexit changes that are coming on 1st July.

Established in 1991, CPG Logistics operates from the UK supporting a broad range of companies, many of which operate within highly regulated industries. In order to support its clients in successfully navigating post-Brexit customs complexities, CPG Logistics started its preparation in 2018, gaining its Authorised Economic Operator (AEO) status for its custom bonded warehouse and then deploying Descartes’ e-Customs to cope with the increase in demand for customs declarations.

CPG Logistics is benefitting as an early adopter of technology for Brexit. Results of recent research – Beyond Brexit – The Realities of Brexit for UK-EU Cross Border Trade – by Descartes shows that companies like CPG that prepared early have successfully made it through the transition. However, the study also revealed that 33% of British traders still do not have a solution. The recent delay in security filing and rolling deferment of customs declarations for imports gives unprepared traders more time, but the lesson learned is that they need to act now.

“It was absolutely crucial for us to start preparing for Brexit ahead of 31st January 2021 to minimise business disruption,” said Richard Lord, CEO, CPG Logistics. “Despite so much uncertainty caused by Brexit, the support we have received from the Descartes team and the ease in which the e-Customs solution has been able to integrate with our current SAP system has been world-class.”

Descartes’ e-Customs is a solution for submitting customs declarations to HMRC’s Customs Handling of Import and Export Freight (CHIEF) service and the new Customs Declaration Service (CDS) required for trade with Northern Ireland. As a cloud-based solution, vital customs and shipping data is secure and continuously accessible. E-Customs is part of Descartes’ extensive portfolio for Customs and Regulatory Compliance for global trade which includes customs and security filing for many countries across the globe, product classification and duty determination and restricted party screening.

“We’re proud to be supporting CPG Logistics as it continues to strengthen its capabilities post-Brexit,” said Pol Sweeney, VP Sales UK and Ireland for Descartes. “However, the lesson for those who, unlike CPG Logistics, have not prepared is that they need to implement a customs filing solution now to minimize the impact of enforcement at year end.”

Webinar on France: The Post-Brexit Logistics Hub

Posted on by Keith McKinley

The United Kingdom’s exit from the EU is forcing companies on both sides of the Channel to rethink value and supply chains. For British and Irish companies willing to keep taking advantage of the European market, France offers an array of solutions and resources: from smart borders to multimodal solutions, world class infrastructure, available real estate & turnkey sites and more.

Join Logistics Business and Business France as well as our panel of expert speakers for a virtual round table discussion and learn more:

  • What does France offer to support logistics solutions managers’ strategies?
  • What has been the experience so far of companies already using logistics solutions in the country?
  • How can businesses successfully set up operations in France?

Our moderator, Paul Hamblin, Editor-In-Chief of Logistics Business, will be joined by:

  • VIP Guest Speaker: Frank Riester, French Minister Delegate for Foreign Trade & Economic Attractiveness
  • Anne-Marie Idrac – Chairwoman of France Logistique, Former Secretary of State for Transport and Foreign Trade
  • Olivier Thouard, President of the International Commission of TLF Overseas (French Transport & Logistics Association), Chair of TLF/TLF OVS Brexit Working Group and Customs & Fiscal representation Director at GEFCO
  • Richard Catt – Director, PSL Freight
  • Rob Burrows, Managing Director, UPS France
  • Christopher Devernay, Senior Director, Procter & Gamble Amiens Plant Manager

WHEN IS THE WEBINAR ON FRANCE AS A LOGISTICS HUB?

Wednesday 21st April 2021
17:00 PM – 18:00 PM CEST (16:00 – 17:00 BST)

You will have the opportunity to ask your questions. Please feel free to send any questions you wish to ask the panel to: invest.ukireland@businessfrance.fr

Click here to register to attend for free now.

Brexit packaging regulations ‘here to stay’

Posted on by Keith McKinley

New regulations governing the movements of wooden pallets and packaging (WPM) since Brexit will remain indefinitely, according to the UK government.

Speaking at TIMCON’s general meeting at the end of March, Defra’s head of programme, Will Surman, told delegates he believed ISPM15 measures stipulating that all WPM travelling between the UK and the EU must be heat-treated are ‘here to stay’. It was also noted that, with average temperatures forecast to rise globally, ISPM15 compliance may also soon become the norm for WPM moving between countries within the EU to eradicate any risk to plant health.

Surman thanked TIMCON and the WPM industry for its work preparing for Brexit, which he said had been critical to a smooth transition and achieving a low level of compliance issues after the 31st December, 2020 deadline.

TIMCON president John Dye (pictured) echoed the comments and said establishing an open dialogue with Defra early in the process had been central to planning successfully for the change.

“The message is clear that the work we have coordinated with Defra to prepare our businesses for Brexit has stood us in good stead for a future where ISPM15 could become the norm,” he said. “The industry’s investment in extending heat treatment capacity means we were ready at the start of this year and well prepared should compliance requirements be extended to apply at the borders of further destinations.”

Surman said enforcement of ISPM15 regulations in the UK is continuing with a risk-based approach, where limited resources are targeted on WPM arriving in the country from high-risk origins.

The general meeting also heard from Brent J. McClendon, President and CEO of NWPCA, who gave an update on the US pallet and packaging business as the international market has recovered. He also spoke about his organisation’s work to promote the Environmental Product Declaration (EPD) awarded to pallets, as an important endorsement of the industry’s sustainability credentials.

Gareth Stace, director general of MakeUK/UK Steel, spoke to delegates about the availability and price issues affecting his sector, which he said mirrored those currently affecting the wood business. He added that even after supply and demand returned to a better balance, he expected the ongoing global situation to keep prices high.

Meanwhile, Alun Watkins, executive director of PEFC UK Ltd, gave a presentation on sustainability and certification, which includes the launch of a chain of custody logo that businesses can use to demonstrate the percentage of certified timber they use.

During the meeting, TIMCON updated its membership on its ongoing work to represent the pallet and packaging industry, which included coordinating with other industry associations, such as the Wood Panel Industries Association (WPIF) and the Wood Recyclers Association (WRC). It also advised that the Extended Producer Responsibility for Packaging consultation document had been released and the date for final comments is 4th June.

TIMCON, having welcomed the reduction of targets for wood from 48% to 35% for 2021/22, said it will continue to work hard in this area to promote reuse before recycling.

There were also updates on the European market and activities of the European Federation of Wooden Pallet & Packaging Manufacturers (FEFPEB) from TIMCON past president and FEFPEB honorary treasurer, Gil Covey; and TIMCON’s work on ISPM15, communications, and the TIMCON/NAPD pallet stacking height guide.

Report highlights impact of Brexit and COVID-19 on supply chains

Posted on by Keith McKinley

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced the findings of its latest Brexit research report: Beyond Brexit: The Realities of Brexit for UK-EU Cross Border Trade.

Following its 2020 research on Brexit preparedness of UK companies, this latest report analyses how business has been affected by both Brexit and the COVID-19 pandemic and the level of uncertainty around the future. Undertaken by SAPIO Research during March 2021, the interviews with supply chain managers assessed the specific elements of EU trade that have been affected, the resulting disruption and the expected performance of supply chains in 2021.

Key findings include:

  • Mixed performance: 43% of businesses have been impacted negatively by Brexit in 2021 – but 19% of businesses are thriving in a post-Brexit world
  • Disruption reality: 90% of businesses have faced disruption since the end of the Brexit transition period
  • Economic impact of Brexit: 53% expect their 2021 turnover to be lower than if the UK had remained in the EU – and the average reduction is 29%
  • Pandemic impact: 76% had their Brexit response disrupted by COVID-19
  • Early preparation has proven key to success, with those businesses that started their customs filing preparations in 2019 (24%) and early 2020 (33%) thriving most

As predicted in Descartes’ 2020 research, Brexit has had a negative impact on both business and the economy. Of the companies surveyed, 90% have experienced disruption in their ability to trade in and out of the EU in 2021 – with 20% experiencing significant disruption since the transition period ended. Despite the high level of concern revealed in the 2020 survey, 40% of companies have actually experienced worse-than-expected EU supply chain performance, according to Descartes’ latest report.

Additional key findings include:  

  • 80% of businesses reported disruption to their cross-border trade with the EU or Northern Ireland (NI), rising to 93% for medium and large enterprises
  • 40% have experienced delays in their supply chains
  • 37% have experienced increased cost of imports
  • 36% have had to manage customs declarations

The combination of COVID-19 on top of Brexit created unprecedented challenges for businesses of every size, in every market. Confidence has been affected. Three quarters (76%) of companies confirm that COVID-19 disrupted their Brexit response.

However, a significant finding is that almost one fifth (19%) are actually thriving in a post-Brexit economy, with 35% of electronics, computer and telecommunications companies enjoying a positive outcome. Preparing early proved essential, allowing these companies to take a holistic approach by working closely with experts who understand the complexities of global trade and by putting solutions in place for customs declarations.

The research findings underline that with the next phase of Brexit changes – an end to deferred import declarations from July 2021, and safety and security filings required from 1st January 2022 – there are lessons to learn about the value of preparation and acting ahead of deadlines. When it comes to successful global trade, planning is not just essential for compliance – it makes a tangible difference to successful business operations.

“Brexit has thrown many businesses into a spin, but the companies that prioritised Brexit preparation are thriving and provide a best practice blueprint that the rest of the market can now follow,” said Pol Sweeney, VP Sales and Business Manager UK, Descartes. “Our research highlights that with the changes due from July through to January 2022, early preparation is, once again, crucial to avoiding expensive disruption.”

For the full research findings, see Descartes’ Brexit Realities Report and for additional Brexit resources visit Descartes’ Brexit Resource Centre.

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