Influential British logistics bodies are calling on the UK government to act quickly and secure a withdrawal agreement with the European Union (EU) before the country's formal exit date of 29 March this year.
Brexit has consumed the UK for two years with matters coming to a dramatic head this week as the British legislative body, the House of Commons overwhelmingly defeated prime minister Theresa May's withdrawal plan while the government also narrowly survived a vote of confidence moved by the opposition Labour Party.
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Unless Parliament decides otherwise, the UK will leave the EU with no deal in place, a scenario which has caused huge concern at the Freight Transport Association (FTA) and Road Haulage Association (RHA), whose members benefit from seamless UK-EU borders, particularly on major trade volumes carried by road through the ports of Dover and Calais.
"A no-deal Brexit would be highly damaging for trade, for business and for Britain," said FTA deputy CEO, James Hookham. "With no clear solution for what happens next, the risk of a no-deal has risen significantly and the problems which this would cause businesses, which now have virtually no time to prepare, would be catastrophic for the UK's supply chain, on which we all rely.
"Mrs May's Lancaster House speech, two years ago promised frictionless trade would be protected, whatever the outcome of negotiations with the EU: this promise has not materialised.
"A no-deal would increase delays at the country's borders, increase red tape and costs for logistics businesses already operating on narrow margins, restrict access for transport to the EU and reduce the available skilled workforce for logistics operators – all problematic on their own, but when viewed together, a perfect storm which could cause untold damage to businesses and individuals right across the country, not just those trading directly with the EU."
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By GlobalDataLogistics is a sector at the heart of the UK's economy: companies directly involved in or highly dependent on logistics, such as retail and manufacturing, make up 22% of all British companies and employ a third of the workforce.
"As a sector, logistics has been asking government for clarification on key trading areas for the past two years," added Hookham. "Issues such as how customs declarations are to be made and tariffs collected, the access rights for trailers and UK personnel, and how access is to be granted for vehicles may seem incidental to some, but actually have a huge impact on the way that goods and services are able to flow freely between the UK and its biggest trading partner.
"Logistics must not and will not be held up as the 'whipping boy' for politicians who have failed to take into account the complexity of the supply chain over the past two years."
As the possibility of the UK exiting Europe with no deal looms ever larger, the British government has set aside a fund running to billions of pounds to prepare domestic infrastructure, while the French government has reportedly today (17 January) unveiled plans to invest EUR50m (US$57m) to smooth any so-called hard Brexit.
The Road Haulage Association – which represents road hauliers – is 'imploring' the UK government and Parliament to quickly gain a consensus on a Brexit withdrawal agreement which will keep UK-EU supply chains moving.
"It is imperative any withdrawal deal includes a transition period to establish new and efficient border technology and systems across industry needed to be put in place to avoid disastrous queues at ports and also a hard border between Northern Ireland and the Irish Republic," said RHA chief executive, Richard Burnett.
"In addition, a deal would avoid reliance on an acute shortage of permits and measures for customs that are unworkable and impractical."
See also: UK lawmakers' vote adds to Brexit uncertainties
