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Summary
- A study has found trade delays at the UK borders are getting worse.
- Around two-third of the 350 respondents faced delays for up to three days on UK-bound goods.
- Delays are being caused due to new custom mandates post Brexit.
Getting goods into the UK from the European Union (EU) has become more chaotic and bothersome for traders post-Brexit, a study has found. Importing and exporting goods from and to the EU have been marked by rampant delays and might end up costing consumers dear resulting from shortage of stocks.
UK’s business leaders had already warned the Boris Johnson government about the difficulties being faced by them at the ports and had said that companies would end up with huge financial losses.
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Also read: What does EU proposal to delay application of post-Brexit trade deal means for Britain?
A survey conducted with 350 supply chain managers revealed that every two out of three of businesses faced delays of up to three days on UK-bound shipments. In a similar survey in January, 38 per cent respondents had said they were facing delays. In the recent survey, one-third of the respondents said they were facing considerably longer delays than in January. Around 28 per cent respondents said the delays were slightly longer and 18 per cent said they faced no delays.
Also read: UK exporters facing Brexit-related hurdles, says study
Businesses and Brexit
It has been widely reported how perishables have been rotting at UK’s ports because of the administrative delays. Brexit mandates that businesses transporting goods to the EU would now have to file custom declarations. It is necessary for truckers to have permits from the government for cross-border trade.
Truckers believe that the situation would worsen once documentation work for animal and plant products become operational in April and full customs declaration from July becomes mandatory.
Country’s largest chemical producer BASF has said that it was unable to successfully export from the UK in January. The company also said new trade barriers caused significant friction to its business interests. At the UK-Irish borders, its drivers were forced to sleep inside the trucks for days and trucks had to return from the EU borders as port officials could not handle the burden of additional paperwork requirements.
BASF had said in a submission to the Association of the British Pharmaceutical Industry (ABPI) that these issues were being faced because of the absence of any transition period. It also said that the deal was closed in a hurry without giving negotiators enough time to address specific issues. The ABPI has warned that unless an agreement is reached, there could be potential delays up to six weeks in medicines reaching patients.
Other businesses like fish transporters have also complained of being returned from borders even after carrying tonnes of paperwork with them.
Experts have pointed out that even in the second month of the new arrangement, the delays at the borders have not reduced, despite the return of normal freight volumes and the customs procedures given ample gestation time. Government spokesperson has confirmed latest data suggested that normal freight volumes were back between the UK and the EU due to the hard work of hauliers and traders.
Also read: Why Bank of England Is Planning Tougher Capital Rules Than The EU
Freight companies like DB Schenker and DPD had in January suspended operations to the UK. The companies had said that huge errors in paperwork for custom clearance forced them to pause operations.
Experts and government estimates have said that half of the trucks going to the EU from the UK are empty while the normal average was 30 per cent, resulting in increased pressure on transport prices.
