Since Brexit was voted for back in June 2016, there has been a nonstop flurry of headlines and predictions relating to its potential effect on the British economy and businesses. Many of the financial forecasts were gloomy, especially in the immediate aftermath of the referendum.
One of the industries which is likely to be significantly affected by Brexit is couriering/logistics, as it relies heavily on trade links/routes with the EU and delivering across the border. Those involved with this industry will need to follow the Brexit negotiation process to glean information on how their business may be affected. Here are some of the ways Brexit negotiations will affect these companies.
Uncertainty
So far, Brexit negotiations have got off to a fairly slow start, with neither side having made any significant or concrete agreements. That being said, the process will not finish until 2019, so developments are likely to take time as complex issues must be extensively discussed.
The uncertainty which surrounds these negotiations is one of the most difficult challenges for couriers and logistics companies, as it makes it extremely difficult for them to plan ahead and adapt to any changes to their ability to operate. As more information about the nature of Britain’s exit from the EU is released, it will be easier for companies to see how their trade will be affected and make necessary changes to their operations.
Trade Links
The nature of Brexit will also determine how trade links are affected. Many have talked of a ‘hard’ Brexit, which would involve a complete severance of any ties in the EU and economic isolation as a result. This would undoubtedly have an adverse effect on couriering and logistics, as they would lose a huge amount of trading partners.
Most now believe that a ‘soft’ Brexit would be better economically, as it would avoid a major shock to the economy and would potentially make it easier for couriers and logistics companies to deliver to European countries.
Business Advisory Group
The government has now set up a business advisory group to allow businesses/business owners to consult with them over the Brexit process. This will allow those involved with the couriering and logistics industry to express any concerns over the terms of Brexit and potentially influence some of the Brexit process.
This could prove vital in ensuring that Brexit does not have a harmful impact on their ability to trade, and give them some idea of how negotiations are progressing. This will lessen some of the uncertainty within the industry, and give companies more confidence to continue developing and expanding (something which the process may well have halted for some companies).
Ultimately, the Brexit process is likely to have a continuing effect on couriers and logistics companies. Their trade will no doubt have suffered as a result of the economic uncertainties presented by leaving the EU, but as more information is released over the coming year they should find adjusting and planning to be a much easier process.
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