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Brexit is somewhat under-way, so it is time again to consider what impacts it could have on us in the Logistics industry – here are 5 key points to considers as Brexit negotiations move forward!


The subject of trade is the centrepiece of the Brexit discussions and the foreseeable impact of leaving the EU affecting the balance of the UK’s payments.

The government have stated that 44% of all UK exports are sent to EU countries. The danger is that leaving the EU may put that figure at risk, significantly denting Great Britain’s Gross Domestic Product (GDP). Logistically, the consequences could be dire. Reduced trade with Europe could mean less demand for road haulage and crowd the industry with competition.

However – we don’t want to be too depressing. Supply chain expert Professor Alan Braithwaite (who is a Fellow of the Chartered Institute of Logistics and Transport (CILT)) has suggested that “any changes are unlikely to happen immediately” and stated that “Established patterns of trade are difficult to change quickly because of capacity, and all the time trade flows, we will need logistics.”

Border Controls

Irregardless of what happens with trade levels, the logistics industry is anticipating stricter border controls due to Brexit.
This could be as simple as a new set of paperwork, or it could be more invasive. Either way, it’s something to consider, especially if migrant fines are to be reviewed.

Driver Shortage

With tighter control of immigration, we can anticipate a lack of EU migrants gaining employment in the logistics sector – as it stands, EU drivers are relied heavily upon within the industry.

With less ability to recruit, the industry’s ability to serve the economy could be crippled. This could be rectified through investment in UK trained drivers, such as the Trailblazer apprentice scheme.

Legal Implications

Another impossible aspect of Brexit to predict.

As terms are to be confirmed, the best way to be prepared to any changes in law is to abide to the current standards. By doing so you can safeguard your business and ensure compliance at all times.

Cost Implications

Cost implications are expected for all. However, there may be some additional costs anticipated for the logistics industry, such as trade tariffs within the EU, which may increase the bottom line for exporters.

Furthermore, if freedom of movement is reduced, this could impair work efficiency by preventing free movement around the continent. This could mean longer routes or more toll payments. Fuel is also likely to become more expensive, as the weakened pound will affect the UK’s trading of oil and likely result in raised fuel duty imposed by the UK government.

Author Rebecca Sturgess

More posts by Rebecca Sturgess

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