As Brexit draws closer the possibility of the UK leaving the EU without an agreement on the country’s future trading arrangements is now a very likely outcome. As we are told ‘it is better to have a no deal Brexit than a bad deal Brexit’, but how does this agreement affect the UK as well as the logistics and transport industry? Not having an agreement in place will slow the process of free flowing goods in and out of the UK resulting in delays in receiving goods for UK businesses which could become quickly apparent in the grocery sector where an estimated 30% of all foods consumed in the UK are imported from the EU. “The UK would be obliged under the World Trade Organization rules to impose average food import tariffs of 22% and conduct product inspections, leading to delays and shortening the shelf-life of products” (source: The Guardian), this will see an increase in food prices and shortages in basic food overall.
A no deal Brexit will require new permits for those who already trade with EU using trucks, trains and planes. There is still a lot we don’t know about how this will impact us indefinitely but one thing we do know is that company’s that trade across the border are very concerned with very good reasons. We are now seeing companies stock pile a huge amount of goods in the case of a slow down between borders as well to fight the inevitable price increases until there is a deal made between the two trade unions. The companies we have spoken to are holding off from making any serious investments into their business until the dust settles and there is a clear outcome from all of this. Do you or your business trade with the EU? If so how are you and your business preparing for Brexit? We would love to hear your thoughts and strategies, comment below and let us know.