We are already aware that the post-Brexit trade deal has made big changes in the UK’s and EU’s trading sector. The new policy requires compliance with many rules- additional paper work, export health and safety declarations making it a long-winded process. This endless paperwork is impacting haulage businesses the most. There may not be new taxes to pay, but there is new paperwork, which subsequently result in delay at the UK-EU border. The trade association for UK retailers have condemned the excessive adherence to rules and formalities associated with the post-Brexit trade deal. Further, the Road Haulage Association has already expressed their concern in the wake of new rules that, once the movement of goods starts to escalate, the impact of red tape on the industry gets manifested.
Attempts from Government to avoid delay
To avoid the excessive delay in ports for example, like Dover, the UK Government has administered diversion of trade to other ports within the country and made lorry parking facilities in Kent, to prevent traffic congestions due to the compliance procedures for the goods onboard. The UK said it delay the checks for six months to help people accustom with the new system, however EU follows checking paperwork from the start. In such instance, odds are that businesses will be taken aback if they are not prepared with properly filling in the paperwork causing delay in the ports.
With more lorry drivers getting stuck in the gridlock with the paper work, it is hard to foretell the disruption levels. The haulers are now avoiding freight transit to the UK; the rejection rates are going high during the past week, as the data shows. The freight firms have witnessed 15 hours of waiting time in queue at Ashford, in Southeast England.
Freight Firms Decides to Fight Back
To add to the woes, the cost of moving freight between EU and the UK remains very high. The shipping cargo from the UK to France was 42% above the third-quarter average last week. To fight the delay, some of the firms rely on air freight and many aviation companies have witnessed a surge in business from its freight division for moving goods that are usually intended to be transported via sea. Mostly, automotive, aerospace, marine and energy industries preferred to rely on air freight, but prominent UK retailers who want to experience least disruptions in their supply chains are also seen flocking after these industries who have chosen airfreight over sea freight to contain the precarious situation at the border.