Earlier this week, I was interviewed by BBC London News on how Brexit could affect logistics businesses in Central London. There was and still is a lot to talk about and here’s part of the discussion that didn’t make the cut.
More than 50% of Mango Logistics Group’s customer exports go to EU countries relatively hassle-free and quickly. In the UK, 80% of all EU shipments are delivered by road, and Mango can deliver to all major cities, within the EU, by next working day, pre-10am. Whether Brexit will affect this or not is something we’ll have to wait and see, my guess is that it will (I hope I am very wrong).
A growing number of Mango customers are in the E-Commerce arena and the EU is a key market for them. This is because it is easier to trade with these nations as technical customs borders do not infringe on the cost of doing trade and the speed in which we can deliver their goods.
New arrangements/trade deals might open up new opportunities to trade with countries that are more difficult to trade with under current regulations. This could give many of our clients wider trading options.
However, the biggest problem with Brexit is the uncertainty it has created. One of the unknown factors for both imports and exports is how quickly goods will roll off the ferries and clear customs.There could also be much higher costs to importing and exporting goods in the EU. Unless we have a similar system in place, post-Brexit, I believe that our clients could be at a disadvantage to their similar EU competitors in the trading block.
Whilst there are many ideas and proposals out there on how to reduce Brexit’s impact on trade, such as new technologies, at this point, it is just talk and it is hard to gauge how they will compare with the system that is currently used by UK customs. We will have to wait for more clarity on what our relationship with the EU will be. Hopefully, we can get something similar to Norway’s arrangement with the EU that still satisfies the reason(s) for our decision to leave.
Whatever the result of continued Brexit negotiations and talks may be, I would like to see a gradual transition from the old system to the new one.
The UK is a nation of resilient traders, so we will always find a way forward and Mango customers know that we will be there for them with solutions for not only moving their goods in the UK and Europe but also further afield.
Any thoughts, feedback or questions, feel free to drop me a line.
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