How Brexit will affect the haulage industry

How Brexit will affect the haulage industry

The sad fact is, we still haven’t reached a deal with the EU. With Brexit feeling very real and coming into effect on 1st January 2021, the small possibility of a “no deal Brexit” that was on the table as little as a year ago, is now looking like the most likely scenario.

So what does this mean for the haulage industry? As we’re sure you’re aware, haulage to places outside the UK will look very different next year and incur costs that we have never previously had to deal with. After a year dominated by COVID-19 and a hugely different landscape than what we are used to already, Brexit presents yet another challenge that UK and European haulage companies will have to face head on. Here are some changes to our procedure that will occur next year.

Increase in costs

Travelling to fellow countries in the EU in the past has proved to be pretty plain sailing for our pallet delivery service. But by the time 2021 comes around, there are some changes that we are going to encounter from the get go, one of these being an increase in custom costs in the event of a no deal. The sheer cost for vehicles alone to be imported into the country would provide a 10% tariff, which is at least £7,000 per vehicle.

There is also tariffs that will have to be paid for tyres and spare parts, and haulage company’s all around the UK will have to pay more costs than ever before. If a no deal Brexit occurs, companies will have to learn to adjust to these rising costs and incorporate them into their daily finances.

Triple check new guidelines

With such changes to the haulage industry comes the introduction of many new guidelines and checks if entering the EU with goods from the UK. So, to be prepared, it is recommended to check, check and check again to ensure that your practice is concluded in line with these new rules. As much as companies would like a period to ease into these changes, this simply isn’t the case, and these rules will come into effect from January 1st, 2021. So, you need to be ready.

Some checks and things to think about include:

UK haulage drivers now need at least 6 months left on a UK passport to drive into the EU, so make sure that you check that of your drivers so they can keep it up to date and remain eligible to do so.

A GB sticker is now required to state that you have entered the EU country from the UK. This needs to be stuck to the rear of your vehicle or trailer, making it visible.

Shoulder your new responsibilities

Even though there are many changes afoot next year, it is important that as a transport distribution company, you take on the responsibility of giving your drivers the learning and prior knowledge they need before they enter the EU. This means making sure that they have the relevant paperwork and documents on them at all times and knowing when to present them. This will now include at checkpoints, such as ports or train terminals, and at customs ports.

Also, make sure that drivers are in the loop about what they need to do at certain points on their journey. This can be quite a lot to get used to, especially when it is a significant change from the processes they are familiar with. By giving them all the information they need, the process should be as seamless as possible, providing you and your drivers all the confidence needed to make the transition.

Get in touch with John K Phillips

Are you concerned about how Brexit is going to affect the haulage industry and your long distance freight deliveries? If so, the friendly team of experts at John K. Phillips will lend their expertise and can give you the reassurance you need.

To contact us today, give us a call on 01744 751000 or fill out our online enquiry form for a quick response from one of the team.