Brexit has been a topic of conversation for many years and its impact has been felt in various sectors of the economy. The freight forwarding industry is one of the sectors that has experienced significant changes as a result of Brexit. The UK government’s decision to leave the European Union (EU) has had a profound effect on the way international trade is conducted.
One of the biggest challenges that the freight forwarding industry faces is the new customs procedures that were introduced as a result of Brexit. The UK’s departure from the EU has led to the imposition of export and import declaration formalities, which include customs clearance inspections on various products. The freight forwarding sector has had to adapt to these changes by updating their processes and procedures to avoid any delays in shipments. This has led to an increase in the cost of transportation as businesses incur additional charges for customs clearance and other logistics involved in the process.
Another challenge that the freight forwarding industry faces is the scarcity of skilled labor. Brexit has made it difficult for businesses to recruit professionals from EU countries. The industry has relied on workers from the EU for many years, but the new rules have made it difficult for businesses to hire the necessary skilled workers from Europe. Additionally, the uncertainty surrounding Brexit has caused many businesses to delay their investments in the UK, which has affected the freight forwarding industry. This has impacted the overall efficiency of the industry and led to a decrease in the volume of goods being imported and exported from the UK.
Brexit has also led to a reduction in the number of businesses that have direct access to the EU market. The UK’s departure from the EU has meant that UK businesses no longer have access to the EU single market without facing tariffs and other trade barriers. This has deterred many businesses from exporting to the EU market, which has impacted the freight forwarding sector. In conclusion, the freight forwarding industry has been profoundly affected by Brexit. The new customs procedures, lack of skilled labor, uncertainty, and reduction in the number of businesses accessing the EU market have created significant challenges for the industry.
Nonetheless, businesses in the freight forwarding sector have adapted to the changes by updating their processes and procedures, and they remain optimistic that they will continue to overcome any obstacles that lie ahead.