Monday, July 12, 2021
“Additional effort”
Brexit requirements deter freight forwarders
At the last minute, the UK and the EU agree on a Brexit trade agreement. The economy breathes a sigh of relief. But a good six months later there are still considerable problems with the movement of goods. There is a lack of experience, expertise and personnel.
Because of the new customs regulations, many freight forwarders have not done business with Great Britain since Brexit. Only companies with years of expertise would still drive, said Dirk Engelhardt, board spokesman for the Federal Association of Freight Transport, Logistics and Disposal (BGL). “Transport logistics companies that do not regularly go to destinations in the United Kingdom and see their expertise more in the intra-EU area, shy away from the additional effort and risks of transports to and from the new third country.”
Great Britain also left the EU customs union and the internal market on January 1, 2021. A trade agreement was reached at the last minute. Nevertheless, customs duties are now due for many goods, the bureaucratic effort, for example when declaring goods or because of work visas for drivers, has increased significantly. The complex new regulations make Great Britain unattractive as an “opportunity destination”, Engelhardt said. The UK in particular would feel the consequences. The BGL boss called for so-called “green lanes” between the EU and Great Britain to enable fast and free movement of goods.
The Federal Association of Forwarding and Logistics (DSLV) also reported problems in delivery traffic with Great Britain. In Germany and other EU countries as well as in the United Kingdom, there is still a lack of qualified personnel for customs clearance of shipments, said the industry association. The customs processes have become so well established. However, the drastic increase in pending export procedures is causing acute problems.
“Driver shortage has Europe firmly under control”
Many trucks reached Great Britain uncontrolled and thus without receiving a confirmation of exit, said Jutta Knell, deputy DSLV managing director. Consequence: German exporters lack customs and sales tax proof of the export. In addition, there is a problem with export via France. The reasons are technical deficits and incorrect applications of the IT process there.
“As a consequence, German logisticians are already considering relocating their traffic via Dutch ports, since export processing there is not so error-prone,” said Knell. In Great Britain, Brexit and the corona pandemic made the situation much more difficult. According to the industry, up to 100,000 truck drivers are missing there, for example because the visas have been too expensive for workers from Eastern Europe since Brexit. As a first measure, the British government has eased the rest periods – despite sharp criticism from the industry. The regulation only increases the pressure on the drivers, but does not bring more workers, said BGL boss Engelhardt.
The Brexit gap in Great Britain does not benefit the European freight forwarders. “The rampant truck driver shortage has the whole of Europe firmly under control,” said Engelhardt. The BGL assumes 45,000 to 60,000 missing drivers in Germany alone. 30,000 truck drivers retire each year, but recently only 15,000 to 20,000 new truck drivers’ licenses were acquired each year. The gap should therefore become larger, said Engelhardt. If the shortage is not dealt with soon, there is a threat of a supply collapse.
.