Home Business Insights & Advice Brexit and parcel shipping: What issues are there?

Brexit and parcel shipping: What issues are there?

by Sponsored Content
17th May 22 3:36 pm

Britain’s landmark decision to detach from the European Union has had a cascading impact in the world of finance, from the stock prices to the international shipping face. Many entrepreneurs feel left in the dark, wondering what the event means for their businesses.

“What changes should we expect and how should we prepare our businesses?”

“Will our logistics become more complicated?”

These are perhaps some of the many concerns being raised. So, what are the real impacts of Brexit on trade and parcel shipping?

Increased border control

When it comes to international shipping and logistics, border regulations and customs will always impact the delivery speeds in one way or the other. With Brexit, control at the border has been stiffened with more documentation being introduced.

Besides the introduction of GVMS at the border points, you will also be required to produce proof of trade and full customs declaration at the points of import. This came into effect in January 2022.

With such policies at hand, the potential for decreased efficiency, slow clearance, and increased importation costs is unfortunately inevitable.

Fast clearance and shipping are essential to your business’s success. To avoid some of these inconveniences and ensure rapid clearance of your goods at the customs, partner with an AEO accredited firm to provide cover for delay and save you the need to be regularly on your toes in search of the newest rules and regulations.

Currency arbitrage by foreign consumers

As money markets went into chaos after Brexit, the British sterling pound was the most affected commodity. While the currency dipped to its 35-years low against the dollar, other currencies outside the UK remained stable, gaining an edge over the pound. Consequently, UK shipping companies that take payments in sterling pounds seem to attract foreign buyers who continue to enjoy cheaper rates thanks to a higher purchasing power of international currencies.

Additionally, foreign consumers continue to take advantage of the same arbitrage and purchase more British products, which has generally led to increased shipment abroad.

Decreased imports to the UK

If the free trade agreements between the UK and the EU are nullified, it means the UK consumers will have to dig deeper into their pockets to pay for tariffs on products from Eurozone, something they weren’t previously doing. As a result, UK consumers will be forced to source goods from beyond the borders of Europe. EU trades will decrease while shipping from these other foreign countries increases.

One of the biggest beneficiaries of the collapse of the free trade agreements will be Asia. Countries like China produce cheap goods; thus, you can expect an increase in the shipment of goods from Asia into the UK.

New trade agreements with other international parties

After breaking away from the EU, the UK is already trying to secure new trade deals with several other international parties. With new trade agreements come new trade opportunities. For example, the 2021 Australia-UK tariff-free deal covers approximately £14 billion in trade annually. These figures are projected to increase following the Brexit deal.

As the UK continues to carve out such deals, new opportunities for shippers on both the import and export side emerge.


The decision to leave the EU has both positive and negative impacts. While exports are being encouraged by the depreciating pound value, imports continue to decrease because of the death of free trade agreements. Asian countries with cheaper products stand to benefit the most from this chaos.

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