BREXIT: a reality

The Haulage Industry faces Brexit

Implications of the Brexit on the UK haulage industry will be numerous. We focused on potential outcomes of this political decision, affecting those who make a living delivering goods across European borders. 

Currently, 44% of all UK exports cross the border to EU countries. This figure is likely to diminish, hence affecting the demand for road haulage. Nonetheless, Alan Braithwaite, A Fellow of the Chartered Institute of Logistics and Transport (CILT), pointed out that "the established patterns of trade are difficult to change quickly because of capacity." 

Border controls could eventually impact logistics efficiency. However, the outcome of these stricter barriers still remains uncertain, as the Road Haulage Association (RHA) demands the UK government to negotiate seamless customs through borders, unimpeded access for international road haulage and ongoing recruitment of lorry drivers outside the UK.

 

"the Road Haulage Association (RHA) demands the UK government to negotiate seamless customs through borders"

 

Indeed, one of the knock-on effects of such restrictions on the borders could be the reduction of EU citizens working for UK-based companies. This has the potential of becoming detrimental to the UK economy if the haulage industry is not quick enough to keep or recruit and train more drivers to avoid such a shortage. 

Moreover, haulage operators are encouraged to remain compliant in relation to employment law governing EU workers non-resident in the UK, including freight drivers. This can be considered an appropriate time to review the systems and records of drivers' employment. 
Other legal ramifications are less likely to be amended after Brexit, as the rules of safe and compliant operation remain the same. 

Lastly, operating costs could increase for UK logistics companies as trade tariffs within the EU grow and the freedom of movement on the continent is reduced. 

For more information about the Brexit and its effect on the UK haulage industry, please visit RHA's website and Aon's website

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