We are a few weeks in with the new Brexit regulations, and couriers have already encountered challenges. It is a period of chaos for some UK courier services tackling the changes Brexit has delivered, and the majority of these issues seem to be occurring from the additional restrictions and paperwork seen as unwanted red tape.
It was reported very early after Brexit that the extra paperwork requirements are creating delays, pushing up costs, causing parcels to be returned, and lorries being turned away, and the European retailers blamed the extra Brexit red tape.
What UK courier services and retailers have to say on the issues Brexit has caused
Marks and Spencer expressed their concern earlier in the year saying the new trade agreements had created “very complex administrative processes and will significantly impact our business”.
The most recent concerns were shared by the British Chambers of Commerce (BCC) who stated that in a comprehensive business survey of 470 firms, 49% of the UK exporters have undergone problems with post Brexit adjustments since January, and this was due to the increase of paperwork, border checks and the increased costs. A number of companies are still unclear and do not know which rules apply to them and which don’t, it is causing a lot of confusion and a lot of improperly completed paperwork.
It is suggested that more than half of British exporters to the EU are having problems with Brexit red tape, causing post-Brexit border disruption to their businesses. The BCC warns that without urgent intervention by both the UK government and the EU, the problems will not be solved and difficulties will continue to mount. With increased trade expected later in the year, if action is not taken now to resolve, further problems will continue.
The BCC continues to express the concerns of firms, particularly as it found 1 in 3 firms from a survey of 1000, as recently as the end of January, are having some difficulty with adapting to the changes. Only 1 in 10 suggested that accommodating the new rules was easy. 45% surveyed did state that cross-border trading did not apply to their business. 16% believed it was too early to hold an opinion. However, those businesses that are involved in exporting and those in manufacturing, half or more reported problems with the new rules introduced.
UK courier services exporting and an EU company offer their thoughts
For the Irish Sea border, the Road Haulage Association (RHA) chief executive Richard Burnett said “This is a financial precipice haemorrhaging money. “There needs to be financial intervention immediately.” It is quicker to send goods between Northern Ireland and Spain than from the rest of the UK, the hauliers said. New customs declarations were taking 12 hours, when hauliers were promised it would take 30 seconds.
Earlier in the year, fishing in Scotland was in crisis, regarding the exporting of seafood and it was highlighted by the company DFDS, a Danish company, as the industry’s biggest logistics provider, DFDS pointed to delays regarding health certificates, issues with the IT system interface between the group and local authorities, and incorrect or missing customs documentation from customers.
Rise in red tape and rise in price
Not only are UK courier services facing red tape with the post-Brexit border it also means extra costs for consumers. If you have bought from online EU retailers recently, you may have noticed the rise in the price of some goods and the delivery. The extra prices have been added to cover the costs of the border and the new surcharges.
Sezane (a Parisian fashion brand) said that UK orders will be charged a £5 admin fee.
Delivery companies announced earlier that they too will be making charging adjustments on all shipments to and from the EU due to Brexit. TNT is charging £4.31 , UPS is charging £4.50 for every package and DHL is adding €5.