Insight Into Action

Why it’s not just logistics supply chains that directly trade between the UK and the EU that will be affected

In the UK, we have already seen the uncertainty leading up to the Brexit withdrawal date impacting the financial markets and the value of the GBP.  In fact, since the results of the referendum, the value of the pound has taken a hit that it is yet to recover from. 

The laborious withdrawal process has been fraught with delays and setbacks which still today, with just 3 months to go, have failed to be resolved. So, what does this mean for the UK?

Long queues of lorries at the borders, grounded planes, complex customs processes, new regulatory requirements… Every day brings a new example of what a ‘no deal’ outcome in March 2019 could mean for logistics and supply chains and, by now, you probably feel that you have heard it all. And yet, with less than 9 months left before Brexit, knowing where to start and what to plan for in this thick ‘Brexit fog’ can be a real challenge.  

If there’s one thing our Brexit blog series has shown, it’s that the practicalities of how businesses will cope and run after March 29th 2019, or at least after the transitional period of December 31st 2020, is still largely unknown.

There are predictions, estimates and forecasts, but, until the final trade agreements have been signed, the true extent of Brexit, and the following repercussions for businesses, will remain largely unknown. The way we’re facing Brexit here at Yusen is through extensive planning, keeping informed of Brexit updates and constantly revising our operations and strategies to ensure we’re able to make as informed strategic decisions as possible at this stage.

The latest blog post in our Brexit series highlights the specific subject of your customs clearance after Brexit, and how these affect supply chains, both in and out of the UK. With Brexit day fast approaching, we reveal what procedures and plans we have in place to overcome the challenges Brexit poses at the borders.

In our previous blog post our internal Brexit expert, James Colson, highlighted the key potential scenarios for businesses’ supply chain management and how to start preparing for the day we leave the EU and beyond.

The latest blog post in our Brexit series explores how the impending leaving of the EU is already influencing the UK warehouse and transport industry.

For now, however, we still have some time before the end of the ‘leave’ transitional phase of December 2020, and the fine details are still far from clear. At Yusen, our focus must be on potential scenarios, expected outcomes and comprehensive logistics contingency planning, for both ourselves and our customers.

With so much remaining unknown, at this stage the impact of Brexit on the high value goods supply chain can only be guesstimated. As an EU member state, the UK has long enjoyed free trade with its European counterparts, bringing benefits such as zero Customs Duty on products received from or dispatched to fellow European Union (EU) states, as well as minimal red tape.

If a customer pays a premium price for a premium product – anything from the latest games console or mobile phone to a designer handbag or top-of-the-range fridge freezer – they naturally expect the very best: a quality product, delivered on time, in prime condition, no excuses. If they decide your product isn’t quite right for them – or they’ve ordered the wrong model, colour or size – they also expect a quick and hassle-free returns or exchange process. In short, if you’re dealing in valuable goods, every aspect of the high value goods supply chain needs to run like clockwork to ensure customers are happy and your reputation for excellence remains intact.

To enable you to meet your customers’ high expectations, outsourcing your warehousing and distribution services to an experienced third-party logistics (3PL) for high value goods like Yusen Logistics can pay huge dividends. Our networks, infrastructure, experience and supply chain management expertise will protect and enhance your high value cargo and add substantial value to your operations.

They used to say that a week was a long time in politics, but these days 24 hours seems to have enough news for a normal year. In the wake of Brexit, it’s begun to feel like we’re driving through thick fog, relying on our fog lights to illuminate as much as possible as we negotiate the hazy conditions ahead.