Affected by Brexit, British sellers face the risk of rising logistics costs

On July 19, according to foreign media reports, logistics technology service provider Haulage Exchange recently conducted a survey on the 16 largest transportation companies in the UK to investigate the impact of Brexit on the logistics industry . The survey found that due to Brexit, more than half ( 56% ) of British freight companies are considering moving their business to EU countries.

The report pointed out that after Brexit, the UK's logistics industry continued to face problems such as border delays, driver shortages, and increased management time and costs .

Of the freight executives surveyed , 81% said they had to wait more time at the border to enter the country, and 69 % believed they had to spend more time processing documents than before.

Another 19% of respondents said they were ready not to do business with EU companies, and only 6% of companies mentioned that their business had not been affected by Brexit.

The logistics industry in the UK is becoming increasingly difficult, but the demand for logistics services among the British people is increasing day by day, mainly due to the development of e-commerce promoted by the COVID-19 pandemic .

The survey found that in April this year alone , e-commerce sales in the UK increased by 120% compared to 2019 , and in May it doubled compared to the same period in 2019, which shows how fast the UK e-commerce market is developing.

Unfortunately, the UK’s current logistics level is unlikely to keep up with the rapidly growing e-commerce business. Therefore, in the coming months, the UK may face supply chain problems and various industries will feel the pressure of rising transportation costs .

In the interviews, nearly 70% of freight companies have increased logistics prices, and 31% of companies said they plan to adjust prices in the near future or next year.

In this regard, the research company believes that it is obvious that Brexit has had a profound impact on the country's logistics industry. Even 69% of freight companies have lost a lot of business as a result, and 19% of companies are unwilling to have anything to do with EU companies .

In short, Brexit has caused a small impact on all walks of life in the UK. It is recommended that British sellers pay more attention to market trends and plan products reasonably to cope with the problems of logistics delays and cost increases caused by Brexit.

U.K.

logistics

Price increase