Wrapped in Brexit red tape, a UK freight firm struggles to trade

[snoop1130]

Wrapped in Brexit red tape, a UK freight firm struggles to trade

By Kate Holton

 

 

FELIXSTOWE, England (Reuters) - In just one month of post-Brexit trading, British logistics expert Jon Swallow has seen exports dive, prices rise and customers so desperate that he is practically offering a counselling service.

 

Swallow is one of thousands of freight forwarders and customs brokers based around Britain’s biggest ports who have described the overnight introduction of a full customs border as akin to the country placing economic sanctions on itself.

 

Britain’s New Year’s Eve departure from the European Union’s orbit after 47 years of membership means exporters must now provide customs and safety declarations, health checks and rules of origin details to trade with its biggest partner.

 

“We are now at a disadvantage to people trading within the EU,” Swallow, a co-director of Jordon Freight, told Reuters in his office next to the vast cranes that tower over Felixstowe docks, Britain’s biggest container port, on the south east coast of England.

 

“We’re a very fast-paced business, but now we’re just like walking through mud. There’s just paperwork everywhere.”

 

Prime Minister Boris Johnson, the face of the Brexit campaign, argued that a more nimble Britain would be able to trade globally if it cast off the shackles of what he said was an overly bureaucratic EU.

 

But those companies that trade goods between Britain and the bloc are paying a price, particularly small firms. While the EU applied full checks on goods entering from Britain, the UK is phasing in its own customs rules for imports over six months.

 

Previously Swallow’s firm, which moves up to 10,000 truck loads across Europe a year, would have handled an equal measure of imports and exports. In January his exports have all but disappeared and the price of bringing goods in has jumped.

 

RED TAPE

 

He said many EU drivers were adding 400 pounds ($550) to the cost of driving into Britain so they were covered if they returned without any goods. The industry estimates up to half of the trucks going back to the EU are empty.

 

“We have calls daily at the moment with people, desperate,” Swallow said. “They need to get their goods moved before the buyer decides to go somewhere else. (But) it’s too much. They just can’t comprehend all that needs to happen.”

 

As Swallow was speaking, a member of staff was slowly talking a customer through the steps now required, including producing commercial invoices, a packing list, an export accompanying document, a goods movement reference and more.

 

Make UK, the manufacturing trade body, said 60% of 189 companies it surveyed say they have suffered “significant disruption” despite having prepared themselves for Brexit.

 

The government, which had warned that 7,000 trucks could be held in queues if traders were not ready, is working to help smaller firms adapt. Johnson acknowledged the teething problems but said there will be benefits for trade in the long term.

 

Swallow said bigger firms had generally performed better by throwing people and money at the problem. He is now worried about how companies will fare with full import checks.

 

“The game has changed,” he said, adding that UK Plc had been based on the free flowing movement of goods. “This is a hard Brexit, this is as hard as you can get without no deal. And the consequence of that is, there’s just a lot to do.

 

-- © Copyright Reuters 2021-02-01

 

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[graemeaylward]

17 minutes ago, snoop1130 said:

Felixstowe docks, Britain’s biggest container port, on the south east coast of England.

Wow, Brexit really has changed the UK!   When I lived in Suffolk (where Felixstowe is) it was in East Anglia, on the East Coast facing the North Sea!

[ukrules]

23 minutes ago, snoop1130 said:

As Swallow was speaking, a member of staff was slowly talking a customer through the steps now required, including producing commercial invoices, a packing list, an export accompanying document, a goods movement reference and more.

Sounds like they have idiots doing the paperwork. Commercial invoices, who would ever have thought a business would be required to do that ????

 

Fire them and hire someone competent.

[Mavideol]

25 minutes ago, snoop1130 said:

“We are now at a disadvantage to people trading within the EU,”

nahhh can't be, BJ said they would be doing 100 times better without the EU, it's just the beginning, more to come    555

[rasmus5150]

Jon Swallow realizes that leaving the EU is a bitter pill to Swallow ????

[grumpy 4680]

The EU deliberately made things difficult for the UK, yet they were the first to jump in over the Covid vaccine, breaking the rules in the process. UK firms had plenty of time to make alternative arrangements, but didn't. It's time to hit back, Don't import from the crooked EU.

[grumpy 4680]

Whilst on the subject, Macron stated that Boris should make up his mind if he's friend or alie what a hypocrite, Macrons been a permanent thorn in the UK's side for years, and still is.

[bkkcanuck8]

15 hours ago, ukrules said:

Sounds like they have idiots doing the paperwork. Commercial invoices, who would ever have thought a business would be required to do that ????

 

Fire them and hire someone competent.

Well, then the UK has an excess of stupid people... with 11% (last I heard) of the traffic going without documentation problems. 

[Poet]

15 hours ago, snoop1130 said:

Wrapped in Brexit red tape, a UK freight firm struggles to trade

The article then goes on to describe the impact of EU red tape.

 

[bannork]

6 minutes ago, Poet said:

The article then goes on to describe the impact of EU red tape.

 

An impact that was not clearly explained to the UK electorate before the referendum perhaps. No red tape if you're in the EU-seamless trade as we were. But the UK opted to end it, creating its own problems!

Back to the Customs Union.......

https://www.channel4.com/news/six-in-ten-uk-firms-facing-post-brexit-disruption

[2530Ubon]

15 hours ago, ukrules said:

Sounds like they have idiots doing the paperwork. Commercial invoices, who would ever have thought a business would be required to do that ????

 

Fire them and hire someone competent.

Over simplifying things doesn't make a good point - It's lazy and shows a complete disregard for the truth - and shows your brexiteer colors! There are a multitude of new regulations to go through, and a LOT of money has been added to the cost of our goods.

 

16 hours ago, snoop1130 said:

including producing commercial invoices, a packing list, an export accompanying document, a goods movement reference and more.

 

16 hours ago, snoop1130 said:

“We are now at a disadvantage to people trading within the EU,”

“We’re a very fast-paced business, but now we’re just like walking through mud. There’s just paperwork everywhere.”

 

Dairy produce now needs a vet to sign an EU Export Health Certificate for each shipment and there is also new paperwork and requirements for organic products. These all cost money, and time.

 

The freight shipping industry needs to move fast - there are perishible goods on board! When your shipments have to have a ton of paperwork ready and checks on those goods, then of course the industry is going to suffer and slow down.

Edited February 2, 2021 by 2530Ubon

[bkkcanuck8]

2 minutes ago, Poet said:

The article then goes on to describe the impact of EU red tape.

 

Not knowing the ins in the outs, I am guessing that a lot of the small vendors may be having problems with rules of origin.  A customer might be ordering a 'raggedy andy doll', but for customs to deal with it they have to know all the details of what went into the doll -- where did the fabric come from, what are the eyes made of, etc... of the materials where did all of the materials come from.... did enough of the content come from EU/UK sources to have preferential treatment - or does the content fall below required percentages and is it treated as an import not covered by the treaty.  Then because you have divergent safety regulations - not a common standard any more, are all the materials allowed, what is it made of ... are any of the materials banned.... if it is electronic... has it been approved by the required EU agencies (UK agencies don't count anymore as they are not under the common standards - since the UK wants sovereignty to diverge...   When you are dealing with a domestic market all this is automatic.  You don't have to worry about the rules of origin since the components are imported directly into EU and from there you don't have to track rules of origin unless you are exporting to someplace else like the US.   For a big company they already have systems in place for all this bureaucracy that is needed for international trade, but for small companies of a couple people or so ... they would have no idea... and since the deal was signed so close to transition... the government did not have educational programs in place to teach the small shops what was needed etc.    There are probably many shops that do business with the EU that source their products from countries outside of the EU... so they would not be covered by the trade agreement at all.    So yes, I have no doubt the UK is full of 'stupid people' that do not know how to navigate international trade because they never had to... and no one bothered to help education them before Jan 1st.

[Poet]

1 minute ago, bannork said:

An impact that was not clearly explained to the UK electorate before the referendum perhaps. No red tape if you're in the EU-seamless trade as we were. But the UK opted to end it, creating its own problems!

Doesn't change the fact that the red tape in question is EU red tape. These firms are exporting, not importing. The EU could have chosen not to punish the UK in this way, and is clearly doing so to dissuade other countries from leaving.

Seamless internal trade was fine, but increasingly came with restrictions and obligations ,that limited the UK's autonomy in other areas, including external trade. This was removing existing rights of UK citizens and, so, had to be put to a vote at some stage.

If the EU had remained the common market it was originally presented as, and that the British people originally voted for, 99% of people would have continued supporting it.

 

[KarenBravo]

If you voted for Brexit, you can't complain. All this was totally foreseeable.

[Poet]

9 minutes ago, bkkcanuck8 said:

Not knowing the ins in the outs, I am guessing that a lot of the small vendors may be having problems with rules of origin. 

The EU is requiring paperwork that no other country or trading bloc has ever required. It is clearly a punitive tactic. Bureaucracy

as a weapon. No amount of education could have prepared traders for that.
 

 

Edited February 2, 2021 by Poet

[KarenBravo]

Just now, Poet said:

The EU is requiring paperwork that no other country or trading bloc has ever required. It is clearly a punitive tactic. Bureaucracy

as a weapon. No amount of education could have prepared traders for that.

 

 

Link please, or are we just supposed to believe it?

[bkkcanuck8]

2 minutes ago, Poet said:

The EU is requiring paperwork that no other country or trading bloc has ever required. It is clearly a punitive tactic. Bureaucracy

as a weapon. No amount of education could have prepared traders for that.
 

 

Bull, in international trade there is lots of paperwork... there is a reason why smaller companies do disproportionately smaller amounts of international trade...

Edited February 2, 2021 by bkkcanuck8

[bannork]

2 minutes ago, Poet said:

Doesn't change the fact that the red tape in question is EU red tape. These firms are exporting, not importing. The EU could have chosen not to punish the UK in this way, and is clearly doing so to dissuade other countries from leaving.

Seamless internal trade was fine, but increasingly came with restrictions and obligations ,that limited the UK's autonomy in other areas, including external trade. This was removing existing rights of UK citizens and, so, had to be put to a vote at some stage.

If the EU had remained the common market it was originally presented as, and that the British people originally voted for, 99% of people would have continued supporting it.

 

 

Autonomy is a relative thing, like sovereignty. Every trade deal places restrictions on each partner. Time will tell if the UK citizens consider the problems being a third country of the EU is worth it.

[Poet]

1 minute ago, bannork said:

 

Autonomy is a relative thing, like sovereignty. Every trade deal places restrictions on each partner. Time will tell if the UK citizens consider the problems being a third country of the EU is worth it.

No. We have already established that the British do not consider the continual erosion of their autonomy, including limitations on their ability to trade with others, to be a price worth paying for trade access.

It was close, and the establishment were unanimously in favor of continuing the status quo, but it was ultimately a decision for the people.

 

[2530Ubon]

11 minutes ago, Poet said:

Doesn't change the fact that the red tape in question is EU red tape. These firms are exporting, not importing. The EU could have chosen not to punish the UK in this way, and is clearly doing so to dissuade other countries from leaving.

 

Actually it's the UK's fault. The UK didn't want to align itself to EU rules, so it created a load of new regulations - and a few new regulatory bodies.

 

Let's just name one more; (I've already mentioned vet checking for all dairy goods etc)

Instead of using the CE mark, there is a new UK mark that needs to go through a new regulatory body UKCA (UK Conformity Assessed). The UK could have chosen to allign itself and avoid all of these regulations.

[Chomper Higgot]

All predicted by ‘Remainers’ and filed by ‘Brexiteers’ under ‘Project Fear’.

 

Enjoy!

[bannork]

8 minutes ago, Poet said:

No. We have already established that the British do not consider the continual erosion of their autonomy, including limitations on their ability to trade with others, to be a price worth paying for trade access.

It was close, and the establishment were unanimously in favor of continuing the status quo, but it was ultimately a decision for the people.

 

Time will tell. I believe we will rejoin in a few years, realizing the dreadful error we made.

[Poet]

1 minute ago, bannork said:

Time will tell. I believe we will rejoin in a few years, realizing the dreadful error we made.

Of course. You never accepted the legitimacy of the democratic decision, and you have no faith that your country has the ability to survive as an independent nation. Your type has always been part of the British story. Thank God there have been others, with real heart, to carry the nation through the darkest times.

 

[transam]

1 minute ago, bannork said:

Time will tell. I believe we will rejoin in a few years, realizing the dreadful error we made.

I guess you would, it is a trait the remainers keep suggesting, to stop their weeping, perhaps.....????

[bkkcanuck8]

2 minutes ago, bannork said:

Time will tell. I believe we will rejoin in a few years, realizing the dreadful error we made.

I doubt the UK will rejoin in a few years... unless there is clear support from a broad range of people and politicians... Even then, there will be no appetite to go through this again with the UK... so it will be a long drawn out process if the UK ever does want to rejoin...  The UK will just have to learn how to adjust for the foreseeable future...

[Surelynot]

...and yet it was all going so well......

[2530Ubon]

1 minute ago, Poet said:

Of course. You never accepted the legitimacy of the democratic decision, and you have no faith that your country has the ability to survive as an independent nation. Your type has always been part of the British story. Thank God there have been others, with real heart, to carry the nation through the darkest times.

Everyone appreciates that it was a legitimate democratic decision - we're not Americans who easily believe Trumped up BS. (Well, we did believe the 350m a week to the NHS cr-p that was fed to us though)

 

The UK has always been a part of something larger - That's what made us successful. We had a huge empire that spanned a third of the worlds population. When that time was up, Churchill was the 'father' of the EU. We also created the single market (Thanks Margaret Thatcher) to be a part of something larger.

 

Now we're on our own and the UK has never been in this position. Not gonna be easy with Scotland leaving soon!

[vogie]

19 minutes ago, Chomper Higgot said:

All predicted by ‘Remainers’ and filed by ‘Brexiteers’ under ‘Project Fear’.

 

Enjoy!

Are your slogans suffering any problems getting through customs Chomper? ????????????

[Poet]

8 minutes ago, bkkcanuck8 said:

I doubt the UK will rejoin in a few years... unless there is clear support from a broad range of people and politicians... Even then, there will be no appetite to go through this again with the UK... so it will be a long drawn out process if the UK ever does want to rejoin...  The UK will just have to learn how to adjust for the foreseeable future...

There is no guarantee that the EU itself will survive much longer. The Euro is deeply flawed, and the central bank structure is ill-suited to such a variety of economies with deeply different needs.

From an international perspective, Britain has far greater strengths than you realize. You might be surprised to discover, over the coming years, that it is better suited to a world in which the grinding bureaucracy of the EU is a real disadvantage. On almost every big issue, the EU's instinct have been wrong. The lack of connection between EU citizens and the elites who rule them is a real problem. I don't mean just a moral problem but a serious operational disadvantage.

All of the current nonsense is the EU trying desperately to scupper the UK in any way it can because it realizes how vulnerable the whole EU project really is if it is seen that member countries can not only leave but, also, thrive.

 

Edited February 2, 2021 by Poet

[bkkcanuck8]

1 minute ago, Poet said:

There is no guarantee that the EU itself will survive much longer. The Euro is deeply flawed, and the central bank structure is ill-suited to such a variety of economies with deeply different needs.

From an international perspective, Britain has far greater strengths than you realize. You might be surprised to discover, over the coming years, that it is better suited to a world in which the grinding bureaucracy of the EU is a real disadvantage. On almost every big issue, the EU's instinct have been wrong. The lack of connection between EU citizens and the elites who rule them is a real problem. I don't mean just a moral problem but a serious operational disadvantage.

All of the current nonsense is the EU trying desperately to scupper the UK in any way it can because it realizes how vulnerable the whole EU project really is.

 

Yes, I have seen at least one newspaper now has been saying that more than 20 years - how the EU is doomed - it will soon fall apart and end... yet it is still here... and the UK is getting smaller (Northern Ireland and Gibraltar and possibly in the future Scotland).  So which union is more fragile?