Key questions for the Logistics industry ahead of Brexit

Businesses in the Logistics sector face numerous challenges as 2020 draws to a close, including the ongoing impact of the Covid-19 pandemic, onboarding top talent and skillsets, and Britain’s impending exit from the European Union. To delve further into these important topics, Ben Lyons, Operating Director at Michael Page Logistics, recently hosted Elizabeth de Jong, Director of Policy at Logistics UK, in a recent webinar. Among the many hurdles ahead for the sector, it seems that Brexit is front of mind for many Logistics professionals, and with good reason. 

Is the UK prepared for Brexit?

The graphic below, supplied by Logistics UK, displays the Brexit plan it proposed earlier this year. Its timeframes were already tight, Elizabeth notes, and with no Brexit deal currently in sight, many in the logistics sector are understandably concerned. This is not where businesses hoped they would be mere weeks before the end of the transition period. Nor is this this the way in which the sector would have chosen to go about making such substantial and significant changes in the way the UK economy does business with its largest trading partner. 

Logistics UK Brexit Plan

As Elizabeth outlined in the session, a deal with the European Union would provide the UK economy with significant advantages in many areas, most notably regarding tariffs, quotas, and bilateral deals, all of which will increase significantly in the event of a no-deal Brexit. Given this, Elizabeth assures us that Logistics UK will continue to press for a deal with the EU, and also remind businesses of the significant amounts of planning they can carry out without waiting for the conclusion of the negotiations. The sector will have to plan for customs formalities and carry out safety and security declarations. But to be able to make these essential preparations there are also significant tasks for carriers themselves to perform, and still more tasks that carriers must ensure their customers have performed. This is critical if the sector is to deliver appropriate paperwork for every consignment.  

Is enough information available?

Another substantial challenge will be the introduction of a brand-new system of paperwork requirements for supply chains, which Elizabeth says will encompass every item being transported. Against this backdrop, it is crucial that businesses, and the supply chains upon which they rely, are planning for the appropriate customs, safety, and security formalities to avoid operational delays. Many categories of imports will be waived through or go unchecked for a period. It is nonetheless necessary for the paperwork to be in place.  

Brexit undeniably poses a challenge to the logistics industry, and will continue to do so at least for the first half of 2021 as the sector adjusts to new operating procedures. Nonetheless, Elizabeth feels that there are reasons for optimism: 
“The disruption of the COVID-19 pandemic has shown the remarkable resilience of the logistics industry and highlighted its capacity to make implement vast operational changes in a short period of time.” 

- Elizabeth de Jong, Director of Policy at Logistics UK 

How prepared is the industry right now?

There is certainly now a degree of concern that the industry is ill-prepared for the approaching end of the Brexit transition period. Logistics UK is also concerned that much of the guidance being released to businesses is not yet fit for purpose and has not passed usability tests. Elizabeth draws upon the example of the Haulier handbook. It was released in November 2020, designed to inform drivers of what paperwork they will need, and what paperwork they can expect transport offices to hold. Businesses are heavily reliant on such guidance; in its absence, they cannot be confident of delivering the right information to their drivers. 

With this dearth of communication and so many knowledge gaps in key areas, Logistics UK is trying to communicate as effectively as possible with its members. Ultimately, however, this will have a far more limited reach than government communication would, which is why, Elizabeth says, Logistics UK is strongly encouraging such action. 

Is Europe prepared for Brexit?

The other big question is regarding the Brexit-readiness of the European Union itself. Steps have certainly been taken in preparation, with the UK’s four main trading partners in the EU all implementing new systems. These are which are complex and broad in their scope, but Elizabeth notes that the Irish system is a particular concern. Many in the sector fear that it may struggle to cope with imports, noting that the system will be new to Ireland and its establishment less a lower priority than in the UK. 

The Logistics sector undoubtedly faces a complex 2021, with challenges ranging from the continued impact of the pandemic; to the uncertainty heading into, and changes following the end of the Brexit transition. Many businesses in the sector are keeping close watch on the outlook for the industry and assessing whether they have the knowledge and talent to thrive. 

Michael Page’s expertise and uniquely well-qualified talent network allows us to place top quality candidates with sector-leading companies in the Logistics space year after year, in turn allowing those companies to prosper. If you have any questions about how Brexit will affect the Logistics industry or are interested in hiring new talent, please contact us.