The Chartered Institute of Procurement & Supply (CIPS) stated this will likely result in stock shortages and inflated shop prices. While imports have been affected most severely by the delays, exports are also being pushed back. The survey of 350 UK supply chain managers found 44 percent of exporters experienced delays of at least two to three days for goods coming into the EU.
CIPS said evidence suggests drivers are being turned away at or before the border for not having the correct paperwork, even though many new import certifications have still not come into force.
“We are well into the second month of the new arrangements and the hope that delays at the border would reduce as freight volumes returned to normal and customs systems became used to the new processes has not come to pass,” CIPS’s John Glen said.
Changing trade agreements between the UK and EU in the post-Brexit economy affect every stage of the supply chain. Supply chain managers need to incorporate changes to foreign exchange, international trade compliance and customs, data requirements, and contracts into their business plans to stay competitive and profitable.
The negative effects of these shipping delays have prompted many Irish firms to change their freight routes to avoid leaving the single market. According to BBC news, the UK is suffering from a downturn in the volume of freight shipped from Ireland to Great Britain. Irish freight trade to Great Britain has fallen significantly as companies seek to avoid the red tape and frustrating delays associated with Brexit.
Irish companies are embarking on longer and more expensive sea routes to avoid these issues, crossing from Irish ports directly to France rather than using routes across Britain. Last week, freight volumes on Stena Line ferries from Ireland to Great Britain dropped by 49 percent compared to the same time last year. Consequently, freight volumes from Ireland to France jumped 102 percent.
For Ireland, direct sea routes to France are slower and more expensive. However, this path eliminates the need to adapt to post-Brexit checks, paperwork, and customs processes. Chris Smyth, commercial director of Perennial Freight, told BBC big businesses prefer the route through France because it comes with less hassle and more certainty.
Post-Brexit border procedures will only get slower and more arduous later in the year. Starting in July, all imported goods will require customs declarations at the point of import and will be subject to relevant tariffs, according to Associated British Ports. Sanitary and Phytosanitary (SPS) checks will take place at designated Border Control Posts (BCPs).
Changing geopolitical relations and fluctuating consumer demand will always be a challenge for supply chain leaders shipping goods internationally. With the Bamboo Rose Global Trade Management (GTM) solution, supply chain teams receive up-to-date trade and compliance requirements to quickly understand the impact of new or changing regulations. Businesses can then respond to these changes proactively to avoid delivery delays and additional costs.
The Bamboo Rose GTM solution also provides retailers with improved shipment visibility, allowing retailers to better forecast product delivery dates and eliminate inefficiencies in their current shipping processes. The platform enables collaboration and data sharing between retailers, suppliers, freight forwarders, carriers, customs brokers, and banks, so it’s easier than ever to improve traceability and data transparency for import and export purposes.
Retailers also gain the ability to manage and audit their shipping partners to ensure they’re meeting ever-changing regulatory and contractual obligations.
These capabilities help retail supply chain leaders and freight forwarders act with agility to mitigate supply chain disruption – no matter what caused it.
Want to build resilience into your supply chain against geopolitical disruption and shipping delays? Check out the Bamboo Rose GTM solution today.