Brexit and Its Impact on Logistics

After four years of negotiations, the Brexit agreement was finally signed and came into effect on January 1, 2021.

The industrial world — particularly the logistics sector — immediately began conducting studies and research to assess the impact of this major shift in European dynamics over the short, medium, and long term.

The uncertainty caused by the United Kingdom’s exit from the European Union led to the immediate introduction of new customs regulations, which have already affected trade flows between countries.

Although transitional periods were introduced to allow companies time to adjust their import and export operations with the UK, additional border checks and the reintroduction of customs procedures — previously eliminated within the EU’s free movement area — have already resulted in longer waiting times for goods transit.

The introduction of an agreement aimed at preventing tariffs and restrictions on goods traded between the UK and the EU appears to be the only viable solution to ease these difficulties. However, the slow progress in finalizing such an agreement may delay a swift resolution of the issue.

The First Consequences of Brexit

The implementation of the agreement just two days after its signing immediately caused delivery delays and returns, forcing many logistics providers to temporarily suspend their services to adapt to the new regulations.

Furthermore, congestion in several UK ports due to both Brexit and Covid-19 had direct implications on roll-on/roll-off transport, with containers stranded in Belgian ports and forced to move by road from Dover.

Delays in road transport are far from trivial: even a 15-minute delay in delivering components to just-in-time automotive manufacturers can cause millions of dollars in losses annually. Similarly, 75% of the UK’s fruit and vegetable imports travel by road, particularly through the Port of Dover. The risk of empty supermarket shelves and spoiled perishable goods waiting at the border led customs authorities to prioritize vehicles carrying perishable food destined for supermarkets.

Greater attention to the supply chain is now essential to assess connections with suppliers or customers in the United Kingdom and to determine how delivery delays may impact overall supply chain stability.

BRIDGE stands alongside Italian companies that export to or import from the United Kingdom.
Its deep knowledge of road transport to and from the UK ensures that services are tailored precisely to each Client’s needs.