Brexit – Logistics Manager Magazine https://www.logisticsmanager.com Pan-sector news, insight and analysis for logistics practitioners and supply chain strategists Wed, 18 Sep 2019 15:41:43 +0000 en-GB hourly 1 https://wordpress.org/?v=5.2.3 CIPS: Brexit timed for peak Christmas disruption https://www.logisticsmanager.com/cips-brexit-timed-for-peak-christmas-disruption/ https://www.logisticsmanager.com/cips-brexit-timed-for-peak-christmas-disruption/#respond Wed, 18 Sep 2019 15:20:47 +0000 https://www.logisticsmanager.com/?p=39194 A survey of UK and EU supply chain managers by the Chartered Institute of Procurement & Supply (CIPS) has found that almost half (48 per cent) of UK businesses have not had their Christmas preparations affected at all by Brexit. However, more than a fifth (21 per cent) said that moving the deadline from March […]

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A survey of UK and EU supply chain managers by the Chartered Institute of Procurement & Supply (CIPS) has found that almost half (48 per cent) of UK businesses have not had their Christmas preparations affected at all by Brexit.

However, more than a fifth (21 per cent) said that moving the deadline from March to October has made their Christmas preparations more difficult.

The survey also found that some 21 per cent of UK businesses were importing Christmas stock earlier to avoid border disruption. However nine per cent of businesses were struggling to find affordable warehouse space to store Christmas stock. A further nine per cent said that they may not be ready for Christmas at all this year as a result of Brexit.

Dr John Glen, CIPS economist and visiting fellow at the Cranfield School of Management, said: “The October Brexit deadline falls during a crucial period for many UK businesses, when they would normally be busy importing stock for the Christmas period.

“Mass border disruption during this time could have a catastrophic impact, and so businesses need to be provided with as much detail and support as possible to ensure they can survive the festive period and protect UK businesses, and UK consumers from an economic and miserable disaster this Christmas,” he added.

To this end, the survey also found that 22 per cent of UK companies with EU suppliers had completed all steps necessary to export to the EU in the case of a no-deal Brexit; in March 2019 that figure stood at 14 per cent.

The CIPS defines the steps necessary to import to the EU as: the capability to apply for an EORI number; capability to complete each data field in the declaration; agreeing responsibilities with a customs agent and logistics provider and identifying software for submitting documents if they do not use a customs agent.

Furthermore the survey found that 38 per cent of UK businesses with EU suppliers had introduced Brexit clauses to contracts which allow prices or other terms to be re-negotiated in the case of trade tariffs increasing.

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Warehousing rents to continue to rise in London https://www.logisticsmanager.com/warehouse-rents-to-continue-to-rise-in-london-in-event-of-no-deal-brexit/ https://www.logisticsmanager.com/warehouse-rents-to-continue-to-rise-in-london-in-event-of-no-deal-brexit/#respond Fri, 13 Sep 2019 09:49:31 +0000 https://www.logisticsmanager.com/?p=39116 Warehouse space in London is set to see the highest amount of rent growth in the event of a no-deal Brexit, according to the latest analysis from Savills. The property advisor is suggesting rent rises of 1.1 per cent in 2020 because ‘London industrials have a vacancy rate of just 2.4 per cent’. Kevin Mofid, […]

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Warehouse space in London is set to see the highest amount of rent growth in the event of a no-deal Brexit, according to the latest analysis from Savills.

The property advisor is suggesting rent rises of 1.1 per cent in 2020 because ‘London industrials have a vacancy rate of just 2.4 per cent’.

Kevin Mofid, head of industrial research at Savills, said: “Even in the event of a no-deal downturn, London in particular continues to have historically low vacancy rates and occupier demand continues to rise. As online retail continues to grow the need to have more warehousing located near population centres will remain.”

According to research earlier this year from Savills, London is set to require up to 6.49 million sq ft of warehouse space per year, a 419 per cent increase on current levels, in order to keep up with the delivery of new homes in the capital.

The British Property Federation’s (BPF) ‘What Warehousing Where?’ report states that, at a national level, 69 sq ft of additional warehouse space will be needed per home in order to fulfil deliveries generated by the growth in online retail, which now accounts for as much as 21.4 per cent of all retail transactions in the UK.

Savills has calculated that in order to meet current demand for housing in the capital, London will need to build up to 94,000 homes per year. At present, based upon the five-year average, only around 1.25 million sq ft of industrial development is completed annually in London, suggesting a potential short fall of 5.24 million sq ft of warehouse space.

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FTA: Yellowhammer shows much could still go wrong https://www.logisticsmanager.com/fta-yellowhammer-shows-much-could-still-go-wrong/ https://www.logisticsmanager.com/fta-yellowhammer-shows-much-could-still-go-wrong/#respond Thu, 12 Sep 2019 15:17:58 +0000 https://www.logisticsmanager.com/?p=39110 The Freight Transport Association said that the release of the Operation: Yellowhammer document showed that there was “still much that could go wrong” as the country prepares to leave the European Union on 31 October. Yellowhammer is the codename used by the UK Treasury for cross-government planning in the event of a no-deal Brexit. Its […]

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The Freight Transport Association said that the release of the Operation: Yellowhammer document showed that there was “still much that could go wrong” as the country prepares to leave the European Union on 31 October.

Yellowhammer is the codename used by the UK Treasury for cross-government planning in the event of a no-deal Brexit. Its planning assumptions document was released today.

It said that the lack of readiness among businesses could reduce freight flows between the UK and France by anywhere between 40 per cent and 60 per cent.

The FTA said that “many of the details may seem trivial but are actually crucial to the successful protection and continuation of the UK’s supply chain, and industry needs key decisions to be made urgently to keep imports and exports moving efficiently”.

It said it was “still very concerned” by the risk that fuel supplies could be impacted, considering this would affect the movement of goods both domestically and internationally

It pointed out that at no point in the past three years of negotiations had any indication of fuel supply risks been made to the FTA or any of its 18,000 members by the government.

Meanwhile the Road Haulage Association said that the Yellowhammer document confirmed its worst fears about the impact a ‘no-deal’ Brexit will have on the supply chain.

It said the document predicted that business would not be ready for a ‘no-deal’ Brexit and trucks bound for the continent could be stuck in queues for up to two and a half days.

RHA chief executive Richard Burnett (pictured) said that the worst case planning assumptions came as no surprise and called on the government to do everything to prepare business for the UK’s exit.

“This is what we’ve been talking about for the last three years; we’ve been consistently warning that no deal will mean disruption at the border and across the supply chain as firms get to grips with unfamiliar processes.

“An increase in energy from the government has been welcome but it needs to throw all its weight into minimising the impact leaving the EU without a deal will have on the economy.”

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FTA welcomes Spending Review commitment to post-Brexit trade https://www.logisticsmanager.com/fta-welcomes-spending-review-commitment-to-post-brexit-trade/ https://www.logisticsmanager.com/fta-welcomes-spending-review-commitment-to-post-brexit-trade/#respond Thu, 05 Sep 2019 08:18:00 +0000 https://www.logisticsmanager.com/?p=39016 The Freight Transport Association has welcomed Chancellor Sajid Javid’s commitment to £2 billion of funding for government departments to help the UK to establish a new relationship with the EU. As part of the Spending Review yesterday (4 September) it was confirmed that £2 billion of core funding would be provided to departments for Brexit […]

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The Freight Transport Association has welcomed Chancellor Sajid Javid’s commitment to £2 billion of funding for government departments to help the UK to establish a new relationship with the EU.

As part of the Spending Review yesterday (4 September) it was confirmed that £2 billion of core funding would be provided to departments for Brexit in 2019-20 and would continue into 2020-21.

Heidi Skinner, head of policy and public affairs manager at FTA, said that the logistics industry is acutely aware of the need for government to support UK transport infrastructure, “particularly at a time of such uncertainty for British business”.

She said that without this post-Brexit certainty supply chains could not continue to run smoothly and “deliver the vital goods that our hospitals, schools and supermarkets need”.

“The efficient movement of freight in the UK is vital to the economy; it must not be stifled by inadequate infrastructure and a lack of capacity,” said Skinner. “To ensure delays and disruption are minimised and journey times remain reliable, it is of the utmost importance that links to our ports work as effectively as possible.”

Meanwhile Richard Burnett, chief executive of the Road Haulage Association, said that the Spending Review would have been a “golden opportunity” for the Chancellor to cut fuel duty and give road transport operators “a much-needed shot in the arm”.

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BIFA concerned over customs training ahead of Brexit https://www.logisticsmanager.com/bifa-concerned-over-customs-training-ahead-of-brexit/ https://www.logisticsmanager.com/bifa-concerned-over-customs-training-ahead-of-brexit/#respond Wed, 04 Sep 2019 13:54:02 +0000 https://www.logisticsmanager.com/?p=39013 The British International Freight Association has voiced concerns over the government’s plans for £16 million in funding to help businesses train staff to make customs declarations, and to help businesses who support others to trade goods to invest in IT. HM Revenue & Customs announced the funding yesterday (3 September), effectively a doubling of the […]

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The British International Freight Association has voiced concerns over the government’s plans for £16 million in funding to help businesses train staff to make customs declarations, and to help businesses who support others to trade goods to invest in IT.

HM Revenue & Customs announced the funding yesterday (3 September), effectively a doubling of the £8 million of funding made available in December 2018, and encouraged businesses to apply early.

BIFA director general Robert Keen said that while the association welcomed the additional funding “we query whether it will, as the announcement states, lead to thousands of more customs experts being on hand to help businesses on and after Brexit day”.

Keen said that during meetings with both HM Treasury and HMRC, BIFA had highlighted the concerns of members regarding the capability of the customs brokerage sector to increase capacity, at a time when the sector already faces a huge shortage of staff of suitable quality.

“We emphasised that it could take up to a year to train staff to be fully conversant to prepare a range of basic customs declarations, even if there was a sufficient number of trainers to train those staff, as well as relevant courses for them to attend.”

Financial Secretary to the Treasury Jesse Norman MP said: “Brexit takes place on 31 October and we urge all businesses to make the necessary preparations to be fully ready. The government has doubled the support available, so that thousands more customs experts are on hand to help businesses on and after Brexit day.”

In July BIFA criticised the government for failing to get companies to register for a new online system design to protect value added tax revenues on foreign parcels in the event of a no-deal Brexit.

By Christopher Walton

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Europa Worldwide ‘ready for no-deal Brexit’ after £2 million investment https://www.logisticsmanager.com/europa-worldwide-ready-for-no-deal-brexit-after-2-million-investment/ https://www.logisticsmanager.com/europa-worldwide-ready-for-no-deal-brexit-after-2-million-investment/#respond Wed, 04 Sep 2019 10:48:25 +0000 https://www.logisticsmanager.com/?p=38999 Europa Worldwide managing director Andrew Baxter (pictured) has said that the freight forwarder and European road freight operator is “ready to handle a no-deal Brexit”. Europa has spent £2 million to ensure what it describes as the smoothest possible transition for its customers should there be a no-deal Brexit. The £2 million investment includes a […]

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Europa Worldwide managing director Andrew Baxter (pictured) has said that the freight forwarder and European road freight operator is “ready to handle a no-deal Brexit”.

Europa has spent £2 million to ensure what it describes as the smoothest possible transition for its customers should there be a no-deal Brexit.

The £2 million investment includes a 75 per cent increase in raking capacity at its Dartford warehouse, as the company had concerns that if customers did not react in time to customs clearance matters the warehouse could get clogged up with freight on hold.

It has also created a new customs clearance team, as well as expanding and training its operations team.

“Having made adjustments to our business model and by putting in place new processes and procedures, I believe that Europa will provide as smooth a flow of goods as is possible minimising any negative impact to transit times,” said Baxter.

“Plus, by securing Authorised Economic Operator (AEO) Trusted Trader Status and expanding our Transit Guarantee, we will ensure that we have adequate facilities to look after all of our customers’ requirements,” he added.

Baxter also claimed that the level of border delays in the event of a no-deal Brexit “have been exaggerated” and Europa would expect “some disruption in the first few weeks, but not much more than that”.

Baxter was a prominent supporter of the leave campaign during the referendum three years ago, with now prime-minister Boris Johnson visiting Europa’s Dartford hub to launch his campaign in March 2016.

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CBI calls for transport funding boost https://www.logisticsmanager.com/cbi-calls-for-transport-funding-boost/ https://www.logisticsmanager.com/cbi-calls-for-transport-funding-boost/#respond Tue, 03 Sep 2019 08:56:45 +0000 https://www.logisticsmanager.com/?p=38961 The Confederation of British Industry has called on the government to boost local transport and infrastructure spending in its imminent spending review. Chancellor Sajid Javid is due to present the review tomorrow (4th September). The CBI wants the government to follow through on commitments to deliver crucial large investment projects, including HS2, Crossrail and Northern […]

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The Confederation of British Industry has called on the government to boost local transport and infrastructure spending in its imminent spending review.

Chancellor Sajid Javid is due to present the review tomorrow (4th September).

The CBI wants the government to follow through on commitments to deliver crucial large investment projects, including HS2, Crossrail and Northern Powerhouse Rail, deliver full fibre connectivity to the last 10 per cent of homes and businesses, and make the UK the world’s leading low carbon and innovative economy.

It also wants to government to subsidise the provision of rapid charge points to complete coverage of electric vehicles in the UK.

CBI chief economist Rain Newton-Smith, said: “For three years, Brexit has consumed everything on the political agenda, leaving much needed reforms and progress on domestic policy stuck on the side lines.

“The UK has the very best potential to become a high skilled, innovative, well-connected and sustainable nation fit to face the opportunities and challenges of the twenty-first century. The Spending Review is the time to put down the markers to make this happen, and put an end to inaction and inertia.”

By Malory Davies

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£30m to minimise post-Brexit port disruption https://www.logisticsmanager.com/30m-to-minimise-post-brexit-port-disruption/ https://www.logisticsmanager.com/30m-to-minimise-post-brexit-port-disruption/#respond Fri, 30 Aug 2019 13:43:07 +0000 https://www.logisticsmanager.com/?p=38922 The Department for Transport has allocated £30 million to help ports improve capacity and maintain trade flow after Brexit. Ports will be able to bid for a share of £10m, while the other £20m will be divided between four Local Resilience Forums (made up of emergency responders, councils and other public services) in areas with […]

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The Department for Transport has allocated £30 million to help ports improve capacity and maintain trade flow after Brexit.

Ports will be able to bid for a share of £10m, while the other £20m will be divided between four Local Resilience Forums (made up of emergency responders, councils and other public services) in areas with important freight ports.

There will be a further £15m made available to fund longer-term projects to boost road and rail links to ports and ensure more freight can get where it needs to be faster.

Transport secretary Grant Shapps said: “We are leaving the EU on 31 October and we will be prepared whatever the circumstances.”

The Road Haulage Association welcome the funding. “Of course we welcome government’s commitment to making ports Brexit ready,” said chief executive Richard Burnett. “But as with all infrastructure improvements they take time and that is a commodity that we do not have.

“Our concerns are much more immediate. There is still a lack of clarity as regards the paperwork and processes needed to maintain free-flowing traffic. If one haulier is found to have incorrect documents then the knock-on effects will be catastrophic. No amount of infrastructure improvements will be able to cope with tailbacks of traffic resulting from one truck having incorrect or missing paperwork.”

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EU should prioritise free trade, say shippers https://www.logisticsmanager.com/eu-should-prioritise-free-say-shippers/ https://www.logisticsmanager.com/eu-should-prioritise-free-say-shippers/#respond Tue, 27 Aug 2019 08:41:53 +0000 https://www.logisticsmanager.com/?p=38864 The European Shippers’ Council has called on the European Union to prioritise free trade in the future. In a position paper to the European Commission’s Directorate-General for Trade, the ESC said it wants to see a stronger focus on facilitation in free trade agreements (FTAs) and a better harmonisation of FTAs to enable their application; […]

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The European Shippers’ Council has called on the European Union to prioritise free trade in the future.

In a position paper to the European Commission’s Directorate-General for Trade, the ESC said it wants to see a stronger focus on facilitation in free trade agreements (FTAs) and a better harmonisation of FTAs to enable their application; a stronger role for the EU in deescalating tension between partners in world trade; and as seamless Brexit as possible.

The ESC said the European Commission should use its position as the biggest trading block to de-escalate the present tense climate which results in trade wars such as the one between the US and the EU.

“ To settle global trade disputes and create stability in world trade, a well-functioning global trade organisation is indispensable. Therefore, ESC asks the European Commission to take a firm stance regarding the US blockage of the reappointment of judges in the World Trade Organisation’s Appellate Body.”

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DHSC plans £25m emergency medicine contract https://www.logisticsmanager.com/dhsc-sets-out-25m-emergency-medicine-plan/ https://www.logisticsmanager.com/dhsc-sets-out-25m-emergency-medicine-plan/#respond Fri, 16 Aug 2019 09:00:05 +0000 https://www.logisticsmanager.com/?p=38733 The Department of Health and Social Care has set out plans for a £25 million express freight contract to deliver medicines and medical products into the country after the UK leaves the European Union on 31st October. The fact that the DHSC was working on a plan was revealed last month in a notice in […]

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The Department of Health and Social Care has set out plans for a £25 million express freight contract to deliver medicines and medical products into the country after the UK leaves the European Union on 31st October.

The fact that the DHSC was working on a plan was revealed last month in a notice in TED, the European Union’s Tenders Electronic Daily (Logistics Manager, 8th July).

The department said service is intended to deliver small parcels of medicines or medical products on a 24-hour basis, with additional provision to move larger pallet quantities on a 2- to 4-day basis. The service will be available to the whole of the UK.

While the majority of goods will be standard medicines and medical products, the express freight service can also deliver temperature-controlled products if needed.

The contract will run for 12 months, with a possible further 12-month extension. Potential bidders have until 21 August to submit proposals. The successful provider(s) are expected to be announced in September.

The DHSC said the service will provide an additional level of contingency as part of preparations to leave the EU on 31 October whatever the circumstances, supported by an additional £2 billion from the Treasury across government.

This money includes £434 million to help ensure continuity of vital medicines and medical products through freight capacity, warehousing and stockpiling.

The new service will support existing plans already in place, including:

– building buffer stocks of medicines and medical products

– changing or clarifying regulatory requirements so that companies can continue to sell their products in the UK if we have no deal

– strengthening the process and resources used to deal with shortages

– procuring additional warehouse capacity

– supporting companies to improve the readiness of their logistics and supply chains to meet the new customs and border requirements for both import and export

Health Minister Chris Skidmore said: “This express freight service sends a clear message to the public that our plans should ensure supply of medical goods remains uninterrupted as we leave the EU.”

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