Importers and exporters are bracing for the UK to officially exit the European Union (EU), better known as Brexit. There is a lot of uncertainty surrounding this significant event, specifically when Brexit will occur. The deadline was just extended to April 12th giving Theresa May more time to pass a deal for an orderly exit from the EU. Without a deal a “No Deal Brexit” or “Hard Brexit” will take place having a significant impact on the population, global commerce and freight shipping.
With the UK leaving the EU comes a series of changes. As part of the EU, the UK enjoyed free trade and open movement of goods, labor, people, and capital. With Brexit, that will end and so this leaves many in global business and freight shipping services anticipating the repercussions of the transition to a new independent UK.
What Brexit means for global logistics
Without a confirmed deal, the uncertainty in terms of cost and timeline are causing many exporters and importers to scramble to prepare. Potential impacts can arise due to the restricted movement of labor across the EU and UK effecting logistics workers. Newly implemented regulations and guidelines could bring new standards for production, packaging and distribution. Potential trade tariffs will need to be navigated and could impact the bottom line. Any challenges against the free movement of goods could also impact supply and demand. Without a deal there are a lot of uncertainties and so it is vital for companies to be prepared.
Freight Shipping Strategies to prepare for Brexit
As the Brexit deadline quickly approaches, importers and exporters have struggled to implement freight shipping strategies to prepare for when Brexit finally happens and the new reality in shipping to and from the UK it will bring. Suggested Brexit shipping strategies include:
- stock up on goods beforehand (this has already resulted in a warehousing shortage)
- avoid shipping during the initial weeks of Brexit if possible
- avoid shipping through the Port of Dover – the main exit and entry point into the UK for goods.
The UK government published a series of guides called the Partnership Pack to provide importers and exporters information on steps they need to take for their business in case of a no deal scenario. While large companies have been preparing for Brexit for the past 18 months, many small companies have failed to prepare even with repeated warnings.
Use Freight Shipping Services to navigate Brexit
While a “No Deal Brexit” will surely result in a supply chain disruption, one of the best ways to make sure you have the best logistics solution for your company is to use a freight forwarder to move your goods. Freight forwarders have been preparing for Brexit and are well aware of the changes that may come with a “Hard Brexit”. The key to navigating Brexit with minimal disruption is to work closely with your freight forwarder to discuss planning and forecasting. That means assessing what your demand will be for this year and aligning it with how a freight forwarder can potentially support you with different freight shipping options.
The freight shipping services experts at Mach 1 Global Services have been preparing for the impact of Brexit and can help minimize its effect on your supply chain. To learn more about the many freight shipping services we offer, visit our page on Transportation Services. Contact us to discuss your Brexit concerns and see how Mach 1 Global Services can help. Click HERE to plan your shipment today.
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