Coronavirus: Lack of Infrastructure Leads to Issues in EU Shipping
Reported earlier this month, transport industries and companies shipping to the EU in particular, are yet to feel the impact of serious deficiencies in key areas.
This is the reality of the ‘No Deal’ Brexit agreement, which has contributed in part to a relatively bleak outlook for those that trade with the EU.
However, as reported by DG International’s Head of Operations, Paul Westron – as a part of his UKHaulier contribution – regardless of the issues that surround Brexit, the haulage industry would still be facing the same problems simply without tariffs, which includes a lack of the following:
- Infrastructure
- Training
- Drivers
£250 million in funding has been provided by the UK Government to support ports across the UK, and whilst this was a positive step post-Brexit, now that the Customs Handling of Import and Export Freight (CHIEF) customs clearance system has moved to the Customs Declaration Service (CDS), there is an element of anticipation in whether or not this will have a truly positive outcome.
Lack of Infrastructure
Despite what is shared by the UK Government by way of funding, there is no denying that – as Paul Westron comments – “infrastructure takes time to build”, which is something he states we are limited on.
The volumes that Felixstowe Port has experienced in recent months as a result of numerous factors has had a detrimental impact to the haulage industry, and fundamentally, there is not the correct infrastructure in place to handle this and mitigate further risk.
Lack of Training
Although the lack of infrastructure is significant, this would not be impacted so heavily if it weren’t for the lack of training available in the relevant areas. These areas in particular include the implementation of CDS, as well as the management of it ongoing – something that cannot be rushed or done incorrectly during this time.
Lack of Drivers
It is no secret that the industry is struggling with a shortage of drivers currently, particularly in keeping up with the demand and volumes at ports such as Felixstowe. It is this, side by side with the lack of infrastructure, relevant training and support for the Goods Vehicle Movement Service (GVMS) and Goods Movement Reference (GMR) system, that could lead to missed deadlines and frustrated customers.
The Impact of DDP (Delivery Duty Paid)
There is also the impact of the DDP to consider. EU customers are now expecting suppliers to accept DDP terms, meaning that suppliers in the UK will have to carry the cost of all shipping, clearance and duty – which could encourage suppliers to increase their prices and ultimately, force their customers to find alternative options.
Moving forward with Transmode
The overall impact on ports across all of these areas is inevitable. It’s exceptionally important, as with most industries, that the haulage and transportation sector mitigate as best they can the potential consequences that COVID may have on their workforce, to ensure we do not suffer more – although this is a tough ask for many, regardless of the industry.
At Transmode, we’re committed to keeping our valued contacts up to date with the latest regarding the impact of the ‘No Deal’ Brexit agreement, alongside any repercussions faced as a result of COVID-19.
If you would like to speak to a member of our team with regards to how we are continuing to operate through the pandemic, please get in touch today and we’d be happy to advise you further.