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Potential delays at the UK's border, later this year

duda_designers • 16 January 2023

Air cargo shippers and air transport workers require more transparency for the sake of security. Of course, this will also enhance efficiency.

Logistics UK warned that the traffic could "grind to a halt" if further measures are not taken as soon as possible.

According to the governme
nt, there had been minimal border disruption so far. It also declared that businesses already received the necessary support to trade with Europe and seize new opportunities.

However, Meg Hillier, chair of the Public Accounts Select Committee declared there is still "much more work that government should be doing" to ensure the border is operating effectively and to minimise the current struggle that businesses trading with the EU are handling. 

Logistics UK declared it was calling on the government to "take action now" to ensure new post-Brexit border controls, including checks on agricultural and food products entering the UK, and biometric checks on passengers entering the EU, could be implemented smoothly in the second half of the year.

"We have just enough time," said Sarah Laouadi head of European policy at the trade body. But she said firms urgently needed more information about which ports would process which products after 1 July.

"Of course you need advance notice to act on this information," said Ms. Laouadi. Without it "the system could potentially grind to halt" she said, with up to 29-mile-long queues at UK ports this summer.

In January new post-Brexit checks on goods contributed to a backlog in Kent, due to issues around the new paperwork required, Ms. Laouadi said.

The MPs' report shows that increased costs, delays, and paperwork were making it even more difficult for UK businesses to trade as before, and while it was difficult to handle the impact of Covid and global economic problems, the cross-party committee found Brexit had reduced the UK's trade with the EU.

John Grayson said things were already "verging on the impossible, logistically and financially" for his business, Earth Natural Foods in London.

He has given up importing directly from EU suppliers and has dropped some specific products altogether, like one particular brand of olive oil.

He relies on importers instead, but an order takes three weeks to arrive instead of one. "A one tonne pallet of goods that used to cost £200, is now near to £600," he added.

Mary Quicke, an artisan cheesemaker based in Devon said she now worries that her EU customers will run out of patience and stop ordering her products if these kinds of problems persist.

"There are just all of these barriers to doing what used to be really, really simple which was agreeing to make a sale and then calling the haulier and off it went and you got paid," she told BBC 5 Live.

"Of course, they want our cheese, but how long do you carry on doing something you want when it's really tedious and costly and you get charged much more money?"

From 1 July extra checks on agricultural and food imports from the EU will take place at ports around the UK, but with products varying from cut flowers to ready-made lasagne, firms need to know which ports will be authorized to process which products, what the operating hours will be and how they fit with ferry schedules, Logistics UK said.

The Public Accounts Committee noted that some of the required infrastructure will not be completed in time and there were still concerns around staffing, including vets.

In addition, later this year travellers including HGV drivers entering the EU will need to go through biometric passport checks, including facial recognition and fingerprint scans, as part of the EU's Entry and Exit System.

Ports such as Dover, where EU-entry checks take place on the UK side, therefore need to be adapted to avoid drivers having to get out of their vehicles and walk across lanes of traffic, Ms Laouadi said.

The Public Accounts Committee said it was particularly concerned about what would happen when passenger traffic across the UK border returns to normal levels as the pandemic subsides.

The PAC report urges the government to write to the committee, within six months, setting out the timetable for its planned programme of work on the "noteworthy ambition" to create the world's most effective border by 2025.

A government spokeswoman said: "Traders have adapted well to the introduction of full customs controls on 1 January, with minimal disruption at the border and inbound freight flowing effectively through ports.

"We are continuing to ensure that businesses get the support they need to trade effectively with Europe and seize new opportunities as we strike trade deals with the world's fastest-growing markets, including one-to-one advice through the free-to-use Export Support Service."

by Evilasio Emanuel Antonio Armando 13 March 2023
The UK and Canada have agreed on a landmark agreement to work together on vital minerals such as cobalt and lithium that are vital to the economy. Launched on the 6th of March by Commerce and Trade Secretary, Nusrat Ghani, and Canadian Natural Resources Minister, Jonathan Wilkinson, the partnership aims to improve the UK's economy by funding research and development between UK and Canadian companies. It helps make tech manufacturers more resilient to global shocks while aiding innovation and growth. This announcement comes during the five-day visit to Canada, where Minister Ghani met with his Canadian government counterparts to discuss the important minerals and attend the International Mines Ministers Summit and the closure of the Toronto Stock Exchange. Nusrat Ghani MP, the Minister for Business and Trade, declared: “Every single one of us depends on critical minerals to make the technology we use in our everyday lives. With a dash for minerals to meet national business needs, it is essential we work to build more resilient supply chains for critical minerals. Through this Dialogue, we will work with one of our closest global allies in Canada to build and strengthen our supply chains and boost innovation, securing jobs and growing the UK economy in the process.” The Canadian Minister of Natural Resources, said: “Canada and the United Kingdom share similar goals and values. By collaborating on the development of the critical mineral supply chains that we need to achieve our net-zero future, we can reinforce global energy security, advance the fight against climate change and ensure significant economic opportunity and support good jobs on both sides of the Atlantic. Today’s announcement is a step forward toward a sustainable and secure clean energy ecosystem.” Canada is the UK’s 13th largest export partner, with UK companies exporting £14.1 billion worth of goods and services to Canada in the 12 months to September 2022. Canada currently produces 60 minerals and metals from 200 mines and 6,500 quarries, making it a huge opportunity for UK mining and engineering companies. The Critical Minerals Statement of Intent and Dialogue will be launched by Minister Ghani at the 2023 Prospectors and Developers Association of Canada Convention. They also commit Canada and the UK to high environmental, social, and governance standards in critical minerals supply chains. As the demand for certain critical minerals is expected to increase by up to 500% by 2040, this statement and dialogue are part of the UK's Critical Minerals Strategy to strengthen supply chains for these minerals. A refreshed approach for delivering the Strategy is due to be published later this year. 
by Evilasio Emanuel Antonio Armando 13 February 2023
The transportation industry is at the core of most businesses. Whether you are selling/buying products, components, raw materials or maybe just relocating, one of the most important aspects is to arrange the transportation process. Never easier some would say, especially now considering the very wide range of shipping services available on the market. Indeed, it can be a straightforward process, however there are a few factors to consider such as the reliability of the freight forwarder/carrier you decide to work with. Recently, one of the biggest concerns when it comes to the transportation industry, is the increase in prices. Nevertheless, we think that an elaborate overview of the actual context will help our customers to get a better understanding of the current shipping cliate, and how it may develop. Increase in Shipping costs overview There are many aspects to debate when we are talking about the growing prices in the transportation industry, however, we would like to focus on the most important ones. 1. Brexit: The exit of Great Britain from the European single market. This massive change affected many sectors, however one of the most impacted was the transportation industry. The first few months after the 1st of January 2021 were marked by uncertainty and chaos. After many years of free trade, the UK left the European Union and that brought about various changes when sending goods from/to the EU, such as customs documents implementation, and of course customs clearance charges. Needless to say, these customs clearance charges have contributed to the rising costs. Due to Customs requirements and checks, the freight is now spending more time in transit, and this is also increasing the costs. At the same time, situations like mislabeling or the lack of necessary legal documents, or missing and/or incorrect information provided on commercial invoices can lead to increased costs for carriers, which in time will be passed over to the end customer. 2. COVID-19 Pandemic: Since 2020, when the COVID-19 pandemic started, the world has been constantly struggling with ongoing outbreaks. The situation has dramatically affected different industries, one of them being the transport industry. National lockdowns and international restrictions have contributed to the rising shipping costs, not only for European imports and exports but have also affected the trade with other continents. Contrary to expectations, the demand for container shipping has increased, following the initial lockdowns and it lead to a shortage of containers. This is likely the first aspect that has contributed to the increased costs for container transport. At the same time, many other factors have contributed to the rising prices, such as the extra measures that have been taken for the safety of people operating within the sector, one of the few sectors which continued to operate throughout the crisis. 3. Drivers' shortage: Again, we are talking about a situation that has affected not only the UK but many countries across the world. The drivers' shortage is considered to be the effect of both the COVID-19 pandemic and Brexit and although it is affecting many countries worldwide, the situation is particularly difficult in the UK. It is very well known that the UK relied heavily on foreign workforce from Eastern Europe, especially for driver jobs. However since the pandemic started, followed by the national lockdown, many drivers decided to return to their home countries. After a few months, new Brexit regulations came into effect, and some of the drivers couldn't return due to the new bureaucratic requests. The haulage companies have urged the Government to include the driver position on the special visa list, stressing out the impact of the shortages. However, the Government decided that the industry should instead focus on the British workforce. The recruiting process didn't help very much, as the testing process has been continuously postponed due to the lockdown restrictions. In the meantime, the demand has risen and caused tremendous backlogs, and the prices have increased. 4. Fuel crisis: Europe is facing one of the most challenging times in the past few decades and the consequences have already started to appear. Since Russia invaded Ukraine in February 2022, the global oil market prices have substantially increased and may continue to do so, according to experts. This represents another reason for increases in shipping costs, and it's massively impacting the world's economy. How are the increasing shipping costs affecting us? The events of the past couple of years have dramatically changed not only the transport industry but also the world. In this context, shipping costs have surged, and so did the prices of many products globally. Until this very moment, we at Pallet2Ship have done our best to keep our prices at the same level, despite the fact that all of our suppliers have increased their rates. The sequence of events that we have all witnessed in the last few years have led to unprecedented cost rises, and unfortunately, the future looks uncertain. The current situation is not only affecting the businesses operating in the transportation industry, but also our customers. Increased shipping costs have played a part in inflation rising to 6.2% in February, from 5.5% in January. 
by Evilasio Emanuel Antonio Armando 15 September 2022
JAPANS TOP 3 LINES TO MERGE The announcement late last week that 3 of Japans leading shipping lines, NYK, MOL and ‘K’ Line, are to merge to form the worlds 6th largest carrier came as no real surprise as the move had been rumoured for several months while discussions were being carried out. It’s worth noting that this follows a trend for mergers that has been in play in the shipping line industry for quite some time now, and this merger will further reduce the total number of global carriers to 13. (There were 20 just 6 years ago). Other recent mergers have included APL being taken over by CMA-CGM and APL merging with UASC. REASONS FOR MERGING The main reason for shipping lines to seek mergers up to about ten years ago was to maximise growth potential as manufacturers in the West rushed to switch their production to the Far East. Fleets of new super container carriers were also ordered to handle the increase in demand Now it’s more a matter of survival as the lines have had to fight for a share of a shrinking market against the back drop of the new super container carriers coming on line. The resulting over capacity has made it impossible for the lines to maintain freight rates that would keep them in profit. WHY THIS MATTERS Ten years ago shipping line mergers may not have been a major concern for UK importers as this allowed the lines to invest and meet the demand for more capacity, thereby reducing the issues faced of containers being delayed or short shipped. During a time of growth in the global economy we needed the shipping lines to restructure to meet the demands of importers and exporters. However the mergers taking place now will mainly serve to give the lines more control over supply in the market. This will undoubtedly force freight rates up… and this at a time when UK importers are already struggling with issues relating to Brexit, the resulting devalued pound and an economy that remains flat to say the least. If you have an opinion on this you would like to share please feel to add your comment in the box below.
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