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Will a no-deal Brexit spell supply chain disaster?

by Mark Fitt Political Journalist
17th Oct 20 11:11 am

As Boris Johnson is set to issue a no-deal ultimatum at today’s potentially explosive EU Summit, the supply chain should be bracing itself for the very real prospect of a no-deal disaster.

Without a trade deal with the EU, British supply chains would be hampered with the masses of paperwork non-EU nations are already subject to. Even the British government knows this will cause massive hold ups at the border: they’re installing portaloos for truck drivers who could be stuck in a two-day-long queue.

Only those businesses that have planned for the worst will regain control over their own logistics operations come 1 January.

Stefan Tärneberg, Director of Solution Consulting at BluJay Solutions told LondonLovesBusiness, “Crashing out of the EU without a deal will have a monumental effect on British trade. Under stringent new regulations, companies will struggle to meet consumer demand for goods. The repercussions will be felt throughout the entire UK economy.

“The sheer volume of customs declarations organisations will need to handle as the UK becomes a ‘third country’ is unprecedented. Subjected to the same regulations on tariffs and import quotas as all non-EU countries, UK companies will need to complete a huge 400 customs declarations a year. Last year, the figure was 5m. That’s an increase of 8000%.

“In a no-deal scenario, we will all bear the brunt. Companies will need to pour hours of skilled manual labour into completing each declaration – with mistakes costing time and money. That’s on top of the financial cost. To keep importing 70% of our goods, the UK will spend £4bn just on customs paperwork next year*. We’ll all foot the bill as prices rise in shops, and our favourite products disappear from shelves entirely.

“A trade agreement with the EU won’t take away the complexity of declarations, but it will lessen the strain on us all, slashing the number of hoops to jump through and restoring abundance as we know it. Without a deal, there is only one solution for a smoother trade situation. Companies must take matters into their own hands and automate the management of these declarations. Those which are so far unprepared will have a huge shock come 1 January with a ripple effect that will impact us all.”

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