How to prepare your business for a post-Brexit Christmas
The 52,000 vacant positions in the transport and storage industry, mostly heavy truck drivers, have put a strain on imports this Christmas season, but that’s not the only problem businesses are facing.
In an ONS survey, 47% of respondents cited a change in transportation costs as a factor that affected their imports in the past year. Meanwhile, 40% of companies mentioned additional red tape and 32% said tariffs and levies were issues affecting imports. With the second phase of Brexit taking place in January, these problems will only get worse. That is why Loved Spilsbury To Fast freight revealed the best tips for businesses to prepare for a post-Brexit Christmas.
What does phase 2 of Brexit mean to me?
Import declaration is required upon entry into the UK. This contrasts with the 6 month deferral regime that was the norm. In addition, from January 2022, goods will be admitted to UK ports via the pre-accommodation or temporary storage model.
Pre-housing works by ensuring that both export and import documents are completed prior to vehicle registration at the port of departure. On the other hand, the temporary storage model where containers can be shipped and even unloaded before being cleared. It varies from port to port, so this should also be taken into consideration.
Will you need papers to import stock from the EU?
In short, yes. Drivers will need to have a passport (minimum 6 month validation), the currency of the destination country (it may not be an EU member state) and customs declaration documents. No order should be shipped until your delivery company has customs clearance. This means that drivers will not be allowed to board a ship or train to the mainland without the proper papers.
Although your goods can be collected without customs documents, the driver will not be able to leave the port without the specific documentation. They will not be able to leave or enter the UK. With ports like Felixstowe increasingly supplied with cargo, this can cause delays that you cannot afford. So make sure you prepare your orders and have the necessary paper on hand well in advance.
Will there be any additional charges?
Certain goods transported will be subject to customs duties. To pay these additional charges, you must have a duty deferral account so that you can pay HMRC and clear your goods. This allows the delivery to proceed quickly and without incident. After all, with the scarcity of heavy truck drivers and ports as crowded as they are, you don’t want any delays for your product.
How should you prepare for increased order volume?
Given the increased interest from consumers, companies should think about how they will cope with the increased volume of orders. Companies should have already ordered additional inventory for Christmas sales, but they may also want to ensure that their supply chain can effectively handle the increased activity. It can be as simple as notifying suppliers of upcoming promotions in advance and using a reliable delivery service to get your stock on time.
However, regular logistics companies may not meet demand due to the lack of heavy truck drivers. In that case, using delivery companies that use smaller vehicles or express courier services should be the next step.
What is the post-Christmas bump?
Seasonal shopping doesn’t end on December 25, Boxing Day, and the January sales will generate as much consumer interest as Christmas itself. The post-Christmas sales could be a good opportunity to sell any extra stock you have left, or it could be an opportunity to get more stock to meet demand. It is important to prepare for either eventuality, which is why it is essential to maintain a good relationship with an express freight logistics service. They can help ease the burden on traditional logistics companies by quickly moving inventory across the country.
These delays aren’t going to go away anytime soon, either. Experts don’t expect the port’s backlog to clear until early 2022 and with the “big resignation” in full swing, there will always be a continuing shortage of heavy truck drivers. This is why this year, more than any other year, you need to prepare your logistics well in advance.