Why Brexit Can Be an Opportunity for SME Freight Forwarders
There is no doubt that Brexit has had a negative impact on the UK's SME (small and medium-sized enterprise) shippers community, but it is now time for new opportunities for SME logistics companies.
There is no doubt that Brexit has had a negative impact on the UK's SME (small and medium-sized enterprise) shippers community, but it is now time for new opportunities for SME logistics companies.
The Impact of Brexit on SME Shippers from the UK
Since Brexit came into effect, SME shippers from the UK have been facing innumerable issues, from custom reforms and shipping delays to a dramatic rise in shipping costs and transit rates.
After decades of free trade with their EU neighbors, the shippers have experienced numerous customs reforms, along with changes to product standards with a consequent increase in paperwork. These have caused significant delays at British ports, resulting in a backlog of movement in important supply chains such as grocery and manufacturing.
All these changes have triggered various implications for both British and European logistics firms that now offer limited services at increased prices as they, too, have to face increased administrative and regulatory hurdles as well as new procedural barriers.
As a consequence, the average traditional forwarder freight movement cost has increased by a minimum of £100 for customs and documentation charges alone. Of course, for smaller customers with low-value products, it is very difficult to make this commercially viable. Meanwhile, large companies and multinationals can absorb the immediate financial impact as they watch smaller competitors fall out of the market.
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Brexit: A Time of Opportunity for Logistics Firms
According to logistics magazine The Loadstar, “disfunction, complication and increased administration is where SME forwarders could make the difference.”
The article, which is based on interviews with SME forwarders in the UK, demonstrates how smaller forwarders, who traditionally provide a much more personalized service, can provide almost limitless, tailored added value to customers. This could benefit both parties, as it could help shippers address their challenges, but it would also increase the number of available revenue streams for forwarders, compared to the pre-Brexit decade, and thus increase their profitability.
As a result, Brexit can be a time of opportunity in the logistics world because it has opened up new ways to demonstrate the value of successful knowledgeable and creative businesses that identify and resolve issues before passing them on to their customers.
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