If the UK’s government would not take immediate actions, delays and confusion at the UK’s ports cause imminent threatens to put hundreds of small and medium-sized exporters out of business.
The failure at British ports were attributed, mainly, to the failure on the part of the government to recruit 30,000 odd custom officer to attend to paper work at ports.
Industry warned that the resultant delays and confusion at the UK’s ports, which have already caused, 40% of trucks crossing the Channel with empty containers, engendered the business of small and medium exporters, incurring huge losses for the government in millions of pounds in terms of trade tariffs.
The warning was issued after the UK suffered its worst decline in its exports to the EU. There was a dramatic decline of almost 41% in exports from the UK to the EU, as trucks failed gain entry to the EU after they were being held up owing to a lack of compliant paperwork.
In addition, it was reported that the exporters were either unable to accept orders from customers in the EU or found their goods were returned at massive cost.
In January, according to official data, goods exports to the EU fell by an overwhelming £5.6bn, while imports also declined by almost 30%, or £6.6bn.
However, the Brussels insisted and stressed the fact that the UK exporters should comply with EU rules on imports, compelling many British firms to seek the service of customs agents and veterinary sergeants to certify that animal products are safe and comply with the EU standards to enter the EU.
Richard Burnett, chief executive of the Road Haulage Association, noted that the deluge of exporters needing assistance in filling paperwork meant that the customs agents were turning business away.
In addition to the UK’s Food industry, delays has incurred substantial losses to the Manufacturing Sector and almost three quarters of manufacturers were badly affected by the delays.
Worsening situation
A recently conducted survey among 350 supply chain managers confirmed the fact that two out of three had experienced delays of “at least two to three days”, moving goods into the UK.
A third of them said the delays were “significantly longer” than in January, while 28% said “slightly longer” and 15% noted that the delays of a similar length to January.
However, 8% of supply chain managers who took part in the surveyed conducted by the Chartered Institute of Procurement & Supply (CIPS), said that they experienced no delays or fewer delays.
The survey comes following one of the UK’s largest chemical producers, BASF, revealed that it had experienced “substantial friction” from the new trade barriers caused by withdrawal from the EU.
Although it is too early to predict that the UK government would , immediately, be able to address the issue of dearth of custom officer to handle the paper work at its ports and ease the situation, it is obvious that small and medium exporters would suffer for some time and the trade tariff would decline in months to come.
This shows, despite long preparations for the costly divorce, the UK seemed not to having had a comprehensive Plan B, C and perhaps, D to deal with residual issues arising out of the possible disruptions not only in the supply chains, but also in handling mountains of paper work that would accompany Brexit at British ports. Obviously, the global pandemic has further complicated the mess the UK has already found itself in.
