On the 23rd\nof June, 2016, the United Kingdom shocked the world by voting to leave the\nEuropean Union. Despite over two years passing, the UK has still not officially\nleft the union.<\/p>\n\n\n\n
The UK is\nofficially set to leave on the 29th of March, 2019. Despite this date\nbeing so close, it’s still unclear exactly what Brexit will mean.<\/p>\n\n\n\n
The chances\nof a no-deal Brexit are mounting by the day. This could have serious\nimplications for the haulage industry. Here are a few of the potential\ncomplications that could be caused by Brexit.<\/p>\n\n\n\n
With the\ncurrent arrangement, the UK is a member of the European single market. This\nallows for frictionless trade between the UK and the other 27 members of the\nEU.<\/p>\n\n\n\n
When the UK\nofficially leaves the EU, it’s unclear if this practice is going to continue.\nIt’s possible that the UK will leave the European single market.<\/p>\n\n\n\n
This could\nhave a significant impact on the haulage industry. It’s estimated by government\nfigures that around 44% of UK exports go somewhere in the EU.<\/p>\n\n\n\n
If the\nability to export goods to the EU is compromised in the event of a no-deal\nBrexit, it could result in reduced trade and, therefore, reduced workload for\nhaulage companies. Unfortunately, despite the official exit date being so\nclose, it’s still unknown exactly how trade is going to be affected or if the\nUK will even leave the single market.<\/p>\n\n\n\n
Another\nissue surrounding Brexit and trucking is the issue of new border controls.\nWhile the overall volume of trade might not end up being reduced, Brexit is\nlikely to create new border checks, which will certainly slow down the flow of\ngoods.<\/p>\n\n\n\n
One of the key borders that’s likely to cause problems for UK hauliers is the Northern Ireland\/Republic of Ireland border. It’s been completely frictionless for decades. If new border checks are going to be introduced, entirely new infrastructures and logistics systems<\/a> will need to be put into place.<\/p>\n\n\n\n New borders\nwill likely cause significant delays and issues for the haulage industry. As\nwith most things involving Brexit, it’s still impossible to say exactly how\nthings are going to work post-Brexit.<\/p>\n\n\n\n Even with\nonly weeks to go until the UK formally leaves the Union, we can only speculate\nas to what the impact on the borders will be. Given that the government has\nbeen investigating the possibility of setting up \u201clorry parks<\/a>\u201d near the border checkpoints to help\ndeal with delays, it doesn’t look good.<\/p>\n\n\n\n Another big\nproblem that the haulage industry will likely face in the days after Brexit is\na shortage of drivers available. As the law stands now, there’s not only free\nmovement of goods between the UK and other EU countries, but also the free\nmovement of people. Citizens of the EU are permitted to live and work in any of\nthe other EU countries.<\/p>\n\n\n\n In the\nhaulage industry, this means EU drivers can come and work for UK companies with\nvirtually no additional paperwork or bureaucracy. When the UK leaves the EU,\nit’s likely that this free movement of people will stop.<\/p>\n\n\n\n Since the\nhaulage industry relies on EU workers, this could have a huge impact on the\nindustry. It’s essential that measures are taken to minimize the impact of\nsuch a loss of potential workers. For example, more investment needs to be made\nin training UK nationals to be drivers.<\/p>\n\n\n\n It’s\ncertainly possible that Brexit is going to increase the cost of doing business\nfor the haulage industry. For example, it’s highly likely that increased trade\ntariffs will decrease profit margins for exporters. When this happens, it’s\npossible that many exporters will try and pass off the financial hit onto the\nhaulage industry.<\/p>\n\n\n\n Additionally,\ncomplications arising from the lack of freedom of movement of goods and people\naround the continent could result in reduced operating efficiency. This\ncould also reduce profit margins for the haulage industry.<\/p>\n\n\n\n Another big\nissue is possibly increased fuel costs. Due to the weakened pound, fuel\ncosts are expected to rise in the days following Brexit.<\/p>\n\n\n\n Many\ncompanies have already started leaving the UK due to the uncertainty of Brexit.\nIf you happen to work with any of these\ncompanies<\/a>, this could have a huge impact on your work. By checking\nout the list of companies that have plans to move some or all of their\noperations abroad due to Brexit, you can make preparations.<\/p>\n\n\n\n This is devastating news for many haulage companies<\/a>, as many of them rely on one or two contracts in order to stay afloat. With many businesses leaving the UK, this will almost certainly have a \u201cknock-on\u201d effect, causing many businesses to lose out on profits and maybe close down.<\/p>\n\n\n\n As we get\ncloser to the official Brexit date, many haulage companies have had to turn\ndown jobs due to the uncertainty of Brexit. One haulage company, for\ninstance, had to walk away from a huge contract with a touring band<\/a>, as they could not guarantee their\nability to get the job done.<\/p>\n\n\n\n It has even\nbeen speculated that Brexit could have a huge impact on summer music festivals,\nsince bands and artists may have issues transporting their equipment into the\nUK.<\/p>\n\n\n\n The problem\nwith Brexit for the haulage industry is that no one is quite clear on exactly\nwhat’s going to happen. This makes coming up with a watertight plan extremely\ndifficult.<\/p>\n\n\n\n As the\nimpact is difficult to predict, it might be necessary to have multiple\ncontingency plans in place for your haulage company. By looking into the future\nand being prepared for any outcome, that’s the best way to reduce the impact\nBrexit will have on your livelihood.<\/p>\n\n\n\n Does your\nbusiness need items distributed across the world? Then get in touch with us\ntoday!<\/p>\n\n\n\n On the positive side,\ndeparture from the EU will have little effect on the underlying laws governing\nhaulage industry activities. The Goods Vehicles (Licensing of Operators) Act\n1995 is domestic legislation and will not be affected by Brexit. Equally,\ndrivers\u2019 hours legislation initiated in Europe through EC regulations has been\nadopted within the Transport Act 1968 and will remain.<\/p>\n\n\n\n Because of their\npotential benefits in terms of enhanced road safety and improved enforcement,\nit is likely that laws on smart tachographs will be implemented in the UK too.\nChanging transport legislation could reduce UK hauliers\u2019 ability to operate and\ncompete on a level playing field in Europe.<\/p>\n\n\n\nA Shortage of Drivers<\/strong><\/h3>\n\n\n\n
New Costs for the\nHaulage Industry<\/strong><\/h3>\n\n\n\n
Reduced Business Due\nto Companies Leaving the UK<\/strong><\/h3>\n\n\n\n
Contracts Turned Down\nDue to the Uncertainty<\/strong><\/h3>\n\n\n\n
Reducing the Impact on\nthe Haulage Industry<\/strong><\/h3>\n\n\n\n
Is there a positive note?<\/strong><\/strong><\/h3>\n\n\n\n