Are you Brexit Ready?

general 05 February 2018

Worried about Brexit? Fear not! Our international freight experts have the lowdown on what Brexit might mean for your business, and what you can do to prepareā€¦

Brexit will mean the re-negotiation of hundreds of trade agreements between the countries that the UK wants to trade with in future. This could trigger cost increases when purchasing from the remaining EU nations, and the EU must consider the impact of import taxes and duties when buying goods from the UK. If Sterling stays weak, UK exports will remain attractive and Brexit could catalyse home grown manufacturing to become prevalent.

Just-in-time manufacturing processes could become exposed if no consideration is given to additional transit times. Whilst distance remains unchanged, formalities required at Customs Borders could impact delivery times. Although some fast-tracking technology is hypothesised, we would recommend stock holding reviews or additional overflow warehousing. IT system reconfiguration may also be required to allow the recording & transmission of the additional information needed for EXPORT such as Commodity Codes, Values, Inco Terms.

If your business has historically relied on EU migrant workers, possible future restrictions on freedom of movement and threats to migration status’ should be considered. We could be facing labour shortages, particularly for low skilled roles, and contingency plans should be prepared.

Following decades of free EU trade, many Logistics companies may not have the appropriate knowledge, skills and IT Systems in place to ensure your goods are handled appropriately. Poor advice could have major effect on Duty amounts, VAT payments and re-claims. If formalities are not handled well, delays, fines and in some cases customs seizure could be the result.

If you are paying in Euros, considerations should be made about your currency-hedging strategy. There are many different hedging products on the market, and re-negotiating deals in pound sterling would likely be advantageous.

Our International Freight Manager Angela Kennedy adds ‘as Brexit progresses we will be constantly looking at ways we can adapt our services to remain competitive. Although it’s inevitable the volume of trade will change between certain countries, we’re confident a redirection of international trade will offset any European decreases, and remain positive that our capabilities and experience are more than sufficient to handle whatever eventualities lie ahead’.

PLANNING AHEAD will certainly give you an advantage over your competitors, and whilst the final outcomes of the BREXIT negotiations are some way ahead, being prepared will give you an edge!

If you’re an existing or potential customer that’s concerned about the potential impact of Brexit on your International trade, please contact us at [email protected] where we can discuss your bespoke requirements in the interest of preparedness.

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