The UK government has advised the country's international road transport operators to make contingency plans for a ‘no-deal’ Brexit such as alternative routes, different vehicles or other transport modes.
In a technical notice issued last week, the Department for Transport (DfT) outlined the potential challenges facing the freight sector, together with businesses using its services, and provided some guidance on how to access EU markets from 29 March, 2019 – when the UK is scheduled to leave the bloc – highlighting issues such as haulage permits, Community licences, and trailer registration.
The transport ministry said EU states may choose to recognise that UK-issued operator licences and associated authorisations are based on the same standards as EU Community Licences and do not require further authorisations.
If they do not, UK hauliers will be able to use European Conference of Ministers of Transport (ECMT) permits if there is no deal. But it warned that these are limited in number and there are expectations that demand for them “will significantly exceed supply.”
According to the DfT guidance, “hauliers should, therefore, consider how many permits they may require to operate internationally so they are ready to apply later in the year. Importantly, hauliers and businesses should consider what contingency plans they need to have in place for the movement of goods if they do not receive the number of permits they applied for.
“This may include planning for alternative routes to move goods, or using different vehicles or modes of transport (such as containerised transport or operating ‘unaccompanied trailer’ business models). Hauliers, and businesses who use hauliers, should consider the implications of possible impacts on supply chains including reduced capacity at ports, reduced reliability and potential higher rates.”
The government guidance does not make specific reference to the courier, express and parcel industry but does note that some types of vehicles, for example, those under 3.5 tonnes, will be exempt from permit requirements.
In response to the government’s ‘no deal’ Brexit papers, Pauline Bastidon, head of European policy at the Freight Transport Association (FTA), which represents freight operators, said they were “overdue” and therefore “welcomed” by the trade body.
“These notices, while confirming what we already knew concerning the impact of a no-deal Brexit on freight transport and borders, will hopefully help traders and logistics companies prepare for the worst case scenario,” she commented.
“They demonstrate that contingency agreements (between governments) are needed to at least protect basic transport connectivity between the UK and the EU. FTA recognises the government’s efforts to secure such agreements, either with the EU or with member states bilaterally, and calls on EU-27 leaders and the European Commission to recognise the need for these contingency measures for freight transport, a sector which supports the entire economy.”
For its part, the Road Haulage Association (RHA) said it was “astounded” by the suggestion that hauliers should consider alternative modes of transport to move goods between the UK and the EU if no agreement was reached on Brexit.
Its chief executive, Richard Burnett, declared: “Goods are moved by road because of speed and efficiency – the UK relies on its incredibly efficient supply chain for consumers and businesses to get the things they need. This would very quickly put the manufacturing sector under severe pressure and the hauliers they rely on out of business.”
The RHA highlighted that the government has not clarified if it will require EU hauliers to apply for ECMT permits to enter the UK if UK operators are forced to obtain ECMT permits to enter the EU. It said any arrangement with the EU had to be reciprocal otherwise it was “unacceptable.”
The RHA also expressed concern that there was no mention in the guidance of plans for freight movements between the UK and the Irish Republic.
Burnett continued: “It’s essential that if there’s a “no deal” it is accompanied with the already agreed implementation period to give businesses a chance to avoid chaos in the supply chain.” He called on the EU to recognise that striking a deal on Brexit is in the best interests of everyone whether in the UK or EU.
Meanwhile, a study published by the Chartered Institute of Procurement and Supply (CIPS) has concluded that one in 10 of UK businesses would face bankruptcy if goods were delayed by less than 30 minutes because of trade disruption caused by a 'no deal 'Brexit.
It found that a failure to reach a deal with the European Union before March 2019 could trigger queues of trucks at UK borders because of an increase in paperwork and checks to clear customs.
Researchers at Imperial College London estimated that just two extra minutes of checks could more than triple the existing queues at ports such as Dover, potentially leading to motorway tailbacks in Kent up to 29 miles long.
The CIPS survey of more than 1,300 UK and EU-based supply chain managers found 10% of respondents at UK firms said they would risk bankruptcy if goods were delayed by between 10 and 30 minutes at the border.
