Brexit has impacted every stage of the logistics process, and research has found that half of British business decisionmakers say that Brexit has negatively affected their supply chains. However, businesses are changing to meet the challenges presented by Brexit.
Customs checks at UK ports have caused delays, with more paperwork required to satisfy customs authorities. This is expected to ease as logistics companies adjust to the new regulations.
Lorry delays at ports have added to transportation costs. Some businesses are using air freight to make deliveries quicker, but air freight costs considerably more than road transport. There is also a worldwide shortage of container capacity, and this has caused sea transport costs to rise. Faced with rising transport costs and increased paperwork, some businesses have stopped sending or receiving goods from and to Europe.
Prior to Brexit, many companies anticipated supply chain problems and stockpiled goods. During the COVID-19 lockdown, there has been a shift to online shopping. Stockpiling goods and the growth of eCommerce has put pressure on warehouse capacity. According to the United Kingdom Warehousing Association (UKUA), there is a scarcity of prime locations for logistics warehouses, and it has asked the government to recognise the importance of the logistics industry.
There are optimistic forecasts for the future, however. Businesses are streamlining their operations in response to the Brexit changes. Many businesses are finding new warehouse space, and the UK warehouse equipment manufacturer sector is meeting the demand for shelving, packing tables, trolleys and other equipment required to run an efficient warehouse operation.
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