The Aftermath of Brexit on the Logistics Sector: Strategies and Challenges for Shippers

Almost six months into the UK’s formal separation from the European Union (EU), supply chain managers are still trying to smooth out disruptions caused by Brexit.

Brexit created a domino effect of problems along supply chains. Added bureaucracy and paperwork at customs checkpoints have caused major delays, which in turn has prompted some companies to move out of the UK—altering routes, adding tariffs, and radically shifting supply chains.

As the impact of Brexit continues to ripple across the global supply chain, a few trends are emerging in its wake. Here’s how some shipping managers are navigating Brexit-related challenges at their companies.

Extend shipping lead times

Empty shelves in Northern Ireland due to customs and certificate controls when shipping from Great Britain. Seafood exporters who failed to deliver perishable goods from the UK to the EU in time. It’s clear that complex customs declarations are causing considerable disruptions. That’s particularly true for shippers dealing with perishables that may require temperature-controlled conditions. The various causes—customs declarations, rules of origin checks, product safety certificates, and food inspections—are all part of the new Brexit world, and logistics leaders are trying to extend shipping lead times to accommodate the added bureaucracy.

Now more than ever, a comprehensive transportation management system (TMS) is essential for navigating a fast-changing landscape. CTSI-Global’s Honeybee TMS™ provides robust data and planning tools that can help shippers anticipate delays, recalibrate routes, and identify possible challenges. And with in-transit visibility, shipping managers can alert the necessary parties to delays—helping to preserve relationships.

Reassess shipping routes

With manufacturers hit by Brexit-related delays, some companies are pulling out of the UK in order to avoid dealing with ongoing disruptions and added expenses. This has prompted some supply chain managers to reorganize trade routes around new hubs.

While rerouting the supply chain in order to avoid going through the UK may help companies avoid incurring additional tariffs, they need to ensure they meet the shipping safety standards of all parties and locations involved. For instance, there may be a different interpretation of the rules around the movement of goods in different EU member states. Regional expertise is essential, as is business intelligence to guide decisions around where to place new distribution hubs.

Partner with the experts

From tax and customs documents to health checks, it’s vital for shippers to get up to speed on new Brexit requirements that, if not met, can cause major bottlenecks in the movement of goods. Keeping track of all the moving parts and fluctuating rules and regulations can be a full-time job—but you don’t have to go it alone.

An experienced international partner can help you navigate complex geopolitical shipping challenges and stay on the right side of the rules. With locations around the globe, including one in Dublin, Ireland, CTSI-Global is well-positioned to provide guidance and support around this and other major challenges global shippers face—so you can make informed decisions and develop a strategy that works for you.

Don’t let Brexit-related delays slow your supply chain down. Contact CTSI-Global today.

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