The trade and security deal the UK Government struck with the EU is a bare-bones deal for tariff-free trade in goods. For many other business sectors that are not covered by the trade deal it means a no-deal outcome creating significant frictions and less EU market access from 1 January. Below we explore what it means for the Transport & Storage industry.
Snapshot:
Customs agents and storage providers are rare, and a significantly larger market will have to develop in the UK. It will be interesting to see if and how the Government will step in and support the huge demand for more customs agents and border storage facilities.
Overview:
Both exporters and importers will be faced with increased logistic costs as transport and storage now comes at a premium. Stockpiling for Covid, Christmas and Brexit have severely strained the UK’s storage capacity and may goods will remain in containers at the quayside.
Fears over full customs formalities in the EU channel mean that some EU-based haulers have been reluctant to deliver to the UK after the transition period ended as they cannot guarantee that their vehicles will be held up on the UK side on the return leg. Increased documentary and regulatory requirements for haulers mean that logistics costs will rise as haulers have to ensure that they obtain all the necessary digital and physical paperwork before embarking.
Would you like to know more?
If you would like to learn more about how Brexit may impact you, please visit our Practical Guidance: Brexit hub here.
And if you have any questions or would like to discuss your specific circumstances, please get in touch with your usual Blick Rothenberg contact or one of the partners on this page.