{"id":5034,"date":"2020-08-27T00:00:00","date_gmt":"2020-08-27T00:00:00","guid":{"rendered":"http:\/\/bpddev2.uk\/clients2023\/metro\/sharing-the-brexit-knowledge\/"},"modified":"2024-02-02T08:56:37","modified_gmt":"2024-02-02T08:56:37","slug":"sharing-the-brexit-knowledge","status":"publish","type":"post","link":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/sharing-the-brexit-knowledge\/","title":{"rendered":"Sharing the Brexit knowledge"},"content":{"rendered":"\n

With a readership approaching two million, including 0.25 million shippers, The Loadstar is one of the most influential supply chain media platforms in the world, which is why, when they want Brexit insights, they talk to our very own Grant Liddell.<\/strong><\/p>\n\n\n\n

The following article was originally published in The Loadstar on the 24th August 2020. The original article can be accessed in full HERE<\/a> <\/p>\n\n\n\n

Q&A with Metro’s Grant Liddell: Logistics in the post-Brexit era<\/strong><\/p>\n\n\n\n

Brexit has been something of a rollercoaster ride: from prime minister David Cameron initiating the process and throwing in the towel when it didn\u2019t go according to plan, to Teresa May elongating it with futile negotiations to no avail, through to Boris Johnson trying to push through a withdrawal settlement in a matter of months.<\/em><\/p>\n\n\n\n

The pandemic may have temporarily dampened Brexit\u2019s potency, but the clock continues to tick.<\/em><\/p>\n\n\n\n

So how will the post-Brexit era affect the logistics industry? The Loadstar asked Grant Liddell, business development director at Metro Shipping, an independent UK logistics provider.<\/em><\/p>\n\n\n\n

Mr Liddell has worked in logistics for more than 30 years, ranging from deepsea and overland to general freight management.<\/em><\/p>\n\n\n\n

\u201cTrade won\u2019t stop. It\u2019s what we do. We\u2019re a trading nation and we have been for the last 400 years\u201d. Grant Liddell<\/em>. <\/p>\n\n\n\n

What is your stance on the Brexit situation?<\/em><\/strong><\/p>\n\n\n\n

\u201cThe UK now needs to ensure that a trade deal, alliances and networks are agreed with each individual country. A daunting task, but one where the logistics and freight industry is central in ensuring Britain continues to function as a prominent global player.<\/em><\/p>\n\n\n\n

\u201cYou must note that Brexit isn\u2019t just about leaving the EU, it\u2019s about losing 41 trade deals covering 72 countries. Is it likely there will be a trade deal with Donald Trump in 2020? I doubt it.\u201d<\/em><\/p>\n\n\n\n

So how will this affect trade with nations outside the EU?<\/em><\/strong><\/p>\n\n\n\n

\u201cWithout a EUR1 \u2013  something many people are forgetting \u2013 which allowed us to trade with these countries without imposing tariffs, there will be full duty rates with these nations too.\u201d<\/em><\/p>\n\n\n\n

Can technology anticipate and overcome the logistical challenges of a \u2018hard\u2019 Brexit?<\/em><\/p>\n\n\n\n

\u201cTechnology will be key in the success of businesses operating in the post-Brexit world. Whether traders, importers, exporters, freight providers, customs authorities or other related businesses, data will be required and usually delivered ahead of the actual delivery of goods to their final destination.\u201d<\/em><\/p>\n\n\n\n

Is technology of more benefit in the case of a no-deal Brexit?<\/em><\/strong><\/p>\n\n\n\n

\u201cThe digital movement of data with customs at borders will be key to either outcome. You must realise that the physical movement of goods and cargo does not change. If this fails, either scenario will fail, certainly in the short term.<\/em><\/p>\n\n\n\n

\u201cHMRC and the government are developing Goods Vehicle Movement Services (GVMS), while transit accompanying documents (TADs) will become prevalent, a Customs Comprehensive Guarantee (CCG) will become a necessary evil and a New Computerised Transit System (NCTS) is needed to potentially close off the processes.<\/em><\/p>\n\n\n\n

\u201cThe movement of goods will not be an obstacle \u2013 the movement of data related to these goods will.\u201d<\/em><\/p>\n\n\n\n

How are you planning on using these technologies?<\/em><\/strong><\/p>\n\n\n\n

\u201cI can\u2019t give too much away. However, Metro has been, and will continue to be, at the forefront of digital solutions, integration with participants in the supply chain, artificial intelligence and a global consistent standard to work with. Get this right \u2013 which we will \u2013 then we will continue to be at the forefront of the industry and delivering both reliable services and customers\u2019 expectations.\u201d<\/em><\/p>\n\n\n\n

Will the potential complexity of the supply chain impact the logistics industry post-Brexit?<\/em><\/strong><\/p>\n\n\n\n

\u201cGenerally, from a freight provider\u2019s perspective, the more complexities and milestones that enter global trade, the better. The more complex and irritating the supply chain and European and global trade becomes, then there are additional revenue streams created, as we offer solutions and add further value services to the supply chain.\u201d<\/em><\/p>\n\n\n\n

How much in the way of revenues do you think the UK freight and logistics industry stands to make from additional paperwork?<\/em><\/strong><\/p>\n\n\n\n

\u201cBased on a need for a reported half a million additional customs entries per day, at an average cost of \u00a335 per transaction, equates to \u00a36.5bn in addition revenue for the industry. Obviously, there are related costs to consider. \u201c<\/em><\/p>\n\n\n\n

And who is paying?<\/em><\/strong><\/p>\n\n\n\n

\u201cUltimately, the traders and importers will be paying for these additional costs. However, it will undoubtably have to be passed on to the likes of you and me \u2013 the end consumer.\u201d<\/em><\/p>\n\n\n\n

Are EU logistics businesses also hoping to profit and develop technological solutions in the same way as UK companies?<\/em><\/strong><\/p>\n\n\n\n

\u201cGood question, with a simple answer: yes. They will have to, from day one of the UK\u2019s departure. In fact, the EU has stated full customs submissions will be required from 1 January 2021, with no leniency on implementation for goods entering or leaving the EU to the UK. With the value-added service delivered by freight providers, costs will be attached.\u201d<\/em><\/p>\n\n\n\n

Do you think Brexit will leave enduring problems for supply chain performance?<\/em><\/strong>  <\/em><\/p>\n\n\n\n

\u201cAs the UK, European and global situation unwinds and, hopefully, progresses towards a better place, then the world of trade, transport and logistics will adjust to accommodate. It\u2019s a dynamic and flexible industry that drives the global village and is key to underlying events, supply chains and the movement of goods. Whether it\u2019s a vaccine from North America to go around the globe, or hi-tech devices from Asia, goods will continue to move. And so will European trade, facilitated by the freight and logistics sector.\u201d<\/em><\/p>\n\n\n\n

Do you believe the disruption and delay to be a long-term problem?<\/em><\/strong><\/p>\n\n\n\n

\u201cIn my opinion, the delays, issues and focus Brexit has had will be short-lived after Q1 21. 2020 has been the most unusual year for generations \u2013 2021 I suspect will be a much more pleasant time to exist in and thrive, whether in the UK, Europe, or the rest of the world. There probably will be a month of pain, but that will soon be dealt with and another \u2018new normal\u2019 will be set in place and evolve to its surroundings. Well, let\u2019s hope so anyway, for my children\u2019s sake\u2026\u201d<\/em><\/p>\n\n\n\n

Would you suggest that the logistical challenges from 1 January have been overstated by the media?<\/em><\/strong><\/p>\n\n\n\n

\u201cThe media continues to instil hysteria and will in the coming months. It is widely reported that there will be delays; with carnage at ports, shortages of food, chaos at borders, long queues of lorries parked on our motorways, Kent ceasing to function and a general shortage of essential products. Will this happen? I doubt it, as it can\u2019t occur. Current circumstances with Covid-19 and what may come relating to this crisis, will not allow it. There are more important things at play.\u201d<\/em><\/p>\n\n\n\n

In what ways will the UK\u2019s logistics providers landscape change?<\/em><\/strong><\/p>\n\n\n\n

\u201cThe final impact will depend on whether the EU and UK agree on a deal. Either way, a customs submission will be required for all movements, but the outcome could vary on a \u2018no deal\u2019 or \u2018deal\u2019. If trade volumes are affected and less cargo moves across our borders, there will be a negative scenario for the whole logistics industry. From my experience, with disruption and volatility comes opportunity. I would be hopeful that increased global trade post-Brexit, and the post-Covid-19 crisis for that matter, and will cause the industry to flourish.<\/em><\/p>\n\n\n\n

\u201cLogistics providers are agile and adaptable, and will facilitate the UK trading with Europe and the rest of the world. It is over to the government, the EU Commission, and negotiations to dictate the outcome driven by the consequences of their decisions. I am and will always be an optimist \u2013 so short-term pain will lead to long-term gain.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

With a readership approaching two million, including 0.25 million shippers, The Loadstar is one of the most influential supply chain media platforms in the world, which is why, when they want Brexit insights, they talk to our very own Grant Liddell. The following article was originally published in The Loadstar on the 24th August 2020. 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