How Brexit Will Pose New Challenges in Logistics Industry

Aug 12, 2019

The impact of Brexit on various industries has been widely discussed over the past couple of months. Challenges in the logistics industry are expected to increase manifold with Brexit. The outcomes of Brexit may have big consequences on even the top companies in the logistics industry. Britain, along with most of the other EU member states, has a service-based economy. This means that they rely heavily on the import of natural resources.

Furthermore, many EU countries are interlinked in their dependence on imports of fuel and petroleum products. For instance, over 25% of Britain’s petroleum products pass through the EU on the way to Britain. If Brexit negotiations result in Britain not being part of the Single Market, tariffs will be applied to goods entering the UK from other EU countries. Consequently, these goods will become more expensive. Rising export prices will not be good for the exporting countries, or for Britain, and those higher costs are likely to have a ripple-down effect and add on to the challenges in the logistics industry.

Productivity, process efficiency, and speed of delivery, and last-mile delivery costs are the crucial factors that influence the growth and profit margins in the logistics industry. Request a free proposal to know how to achieve this and mitigate challenges in the logistics industry coming your way.

Top challenges in logistics industry

challenges in logistics

Reduced trade

Almost half of the UK’s exports are distributed to countries within the EU. Once Brexit is executed, this number will diminish and eventually leave a dent in the UK’s GDP. It will result in major challenges in logistics industry as a reduced amount of trade across mainland Europe will lead to a decline in demand for road haulage even if the rate of export remains constant.

Stricter border control

Experts at Infiniti believe that Brexit would bring about tighter border controls, creating barriers at borders for the administration of trade in both directions. This can cause lower efficiency and add on to the challenges in the logistics industry due to which goods will move slower.

Process efficiency and speed of delivery have always been crucial factors for logistics service providers.

Request more information to learn more about Infiniti’s solutions for the logistics industry.

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