The post-Brexit scenario has dragged everything to a standstill, the logistics sector in particular. Now as per reports, delivery drivers have to put up with much longer waiting time while crossing the UK borders. This invariably affects the industry and evidently those dealing with the supply of perishable products.
Heavy Paper Work and Complex New Tariffs
Infact, over half of the UK businesses involved in export and import of merchandises through the EU border have undergone severe delays due to the post-Brexit paper work. Since January 1st, 2021, companies are required to fill in new forms including many declarations, coupled with complicated new tariff rules. It has created an unprecedented delay in transit at the border and hence time-critical supplies bear the brunt.
Logistics providers who can track the transit status through GPS-based TMS in real time reveals that lion’s share of time is lost and their tracking system shows the trucks getting queued while navigating borders. Many companies have shared their concern that this delay in transit at the borders would certainly become worse as the vehicle moving rate is abysmally low.
Delay Takes a Toll on Trucking Capacity
When truckers have to wait for about half an hour to one hour for every time they set out, it poses real issue as it can eventually affect the business’ bottom line. The hours lost at the borders are enough to create an appalling reduction in the trucking capacities as well. Also, owing to this excruciating delay, many companies have refused to travel to the UK which in turn paved way for increased prices in the spot market for the UK-bound trucks. The high rejection rates have caused noticeably high spot rates than ever. To avoid such losses in both time and trucking capacity, many logistics providers have chosen to operate domestically within mainland Europe.
Recently during last month, German logistics giant DB Schenker has temporarily stopped its services from the EU to the UK on account of issues emanated from the post-Brexit red tape. As per news reports, the worst affected are just-in-time supply chain, which can at the same time cause a disruption in other related sectors as well.