{"id":1453,"date":"2021-02-20T16:42:51","date_gmt":"2021-02-20T11:12:51","guid":{"rendered":"https:\/\/www.gocomet.com\/blog\/?p=1453"},"modified":"2021-02-20T16:44:21","modified_gmt":"2021-02-20T11:14:21","slug":"impact-of-brexit-on-logistics-and-the-way-forward","status":"publish","type":"post","link":"https:\/\/www.gocomet.com\/blog\/impact-of-brexit-on-logistics-and-the-way-forward\/","title":{"rendered":"Brexit: Impact on logistics and the way forward"},"content":{"rendered":"\n

It\u2019s been a little over one month since the much anticipated Brexit went into full effect, and shippers across the UK and Europe have been experiencing an avalanche of delays and documentation.<\/p>\n\n\n\n

Businesses in the UK and organisations trading with the region are looking for ways to mitigate risks as the realities of Brexit have begun to hit home.\u00a0\u00a0<\/p>\n\n\n\n

Is it really that big a deal?<\/h4>\n\n\n\n

Yes, it is. A Gartner survey found that 69% of European and 42% of North American risk, audit and compliance leaders say that Brexit uncertainty or conditions could have a moderate, significant or worse effect on their company\u2019s revenue.<\/p>\n\n\n\n

Facilitating a smooth flow of goods has been a critical function of the European Union. It has brought together countries to form an economy that offers massive economies of scale and scope. Thanks to the European free trade zone, companies in the region have enjoyed just-in-time logistics systems for all these years.\u00a0<\/p>\n\n\n\n

But with the destabilisation of the free trade zone, the equation changes.<\/p>\n\n\n\n

What has changed and what\u2019s expected to change?\u00a0<\/h4>\n\n\n\n

The separation of the two regions naturally means more restrictions on goods and people\u2019s movement than in recent memory. All of this also means increased confusion and delays in operations for enterprises on both sides of the table.\u00a0<\/p>\n\n\n\n

For instance, the European transportation industry\u2019s backbone \u2013 the small and medium-sized carriers are facing the difficult challenge of meeting high customer demands amid taller barriers and new costs. Despite the uncertainty, one thing remains clear\u2014\u00a0 the way companies carry out business in the UK and across Europe is set to change.<\/p>\n\n\n\n

The EU is the UK\u2019s largest trading partner and accounts for approximately half of both imports and exports of goods.<\/p>\n\n\n\n

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Source: McKinsey<\/figcaption><\/figure>\n\n\n\n

Besides, a significant proportion of the UK\u2019s imports from and exports to the EU are in the form of intermediary products. This alone illustrates the extent of interconnectedness between the supply chains of the two regions.<\/p>\n\n\n\n

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Source: McKinsey<\/figcaption><\/figure><\/div>\n\n\n\n

With bare minimum custom regulations, businesses had it relatively easy before Brexit. A bill of lading or basic shipping related documents were enough for shippers to get their goods across the border. But now, companies are left with no option but to engage with the complexities of foreign commerce. Add this to the fact that the policy was rolled out amid a pandemic, and the severity of the situation becomes even more apparent.<\/p>\n\n\n\n

A quick overview of what has changed:<\/h4>\n\n\n\n