Monday, January 24, 2022

Import controls after Brexit Great Britain fears "rude awakening"

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Great Britain made its final break with the EU over a year ago. Now the problems are getting bigger with imports and new controls, and the logistics industry is sounding the alarm.

After the introduction of new Brexit import controls in Great Britain for products from the EU, the logistics industry expects a further departure from freight forwarders from the British market. “Especially for medium-sized companies, this will be a rude awakening,” suspected the head of the Federal Association of Road Haulage, Logistics and Disposal (BGL), Dirk Engelhardt, in an interview with the German Press Agency. The British would have to reckon with rising prices and less availability for products from Europe.

All in all, a round trip for German freight forwarders takes about a day longer than before Brexit because of the customs formalities. Many drivers from the EU have therefore stopped driving to the United Kingdom – also because there is enough choice of jobs in other European countries, because there is a shortage of truck drivers in many places. Engelhardt expects that the move away from Great Britain will be intensified by the import controls for goods from the EU that have been in force since the beginning of the year.

In the medium term, the expert expects that a market will form with significantly fewer logistics companies and drivers who specialize in trips to Great Britain and supply large companies such as car manufacturers or supermarkets. However, this will probably not cover demand, so Great Britain will have to think about further seasonal measures.

A good year ago, Great Britain made its final break with the European Union. Although a trade agreement negotiated at the last minute ensures largely duty-free trade, new formalities and controls have nevertheless created many new hurdles in foreign trade.

Goods from the EU have also been subject to stricter controls since the beginning of the year. However, British logistics companies have not reported any major disruptions or delays from the first few days. Although some drivers were rejected during the controls, this only caused an average delay of 30 to 60 minutes, the Road Haulage Association said on request. In addition, the volume of goods in the first days of January is still rather low.

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