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1St June- Brexit and the Impact on UK Courier Services

Brexit…. the one word that remains the topic of nearly every business conversation and decision going forward.

And rightly so.

In terms of planning, building business strategy, and future proofing businesses, Brexit will impact everyone, within every sector, regardless of the eventual outcome.

Brexit…. the one word that remains the topic of nearly every business conversation and decision going forward.

And rightly so.

In terms of planning, building business strategy, and future proofing businesses, Brexit will impact everyone, within every sector, regardless of the eventual outcome.

For courier services throughout the UK, being as optimistic as possible, and looking at the situation objectively – parcels and goods regardless, will still in some capacity have to be delivered to different locations, whether we are part of the EU or not.

However, we must accept that things will change and knowing the potential implications of these changes from the start will help better prepare businesses for the future.

It’s hard to prepare for an unclear eventuality, but it is possible.
With Great Britain currently accounting for 33% of all online sales in the EU, Brexit has the potential to disrupt market trends hugely.

For example: –

The state of play, now…

Currently, couriers have no barriers or hurdles to jump over when delivering goods and parcels to Europe.  Free to cross borders with packages that require no tariffs, taxes, or clearance charges and return home again without delay.

The potential state of play…

In either a soft or hard Brexit, things may become much more paperwork heavy, as couriers will require much more information about the contents of the packages they are handling, with all these relevant forms and paperwork needed to accompany parcels, unfortunately increasing costs, and resources!

Deliveries may also take longer to reach their destination as potential border control complexities will potentially lie ahead.  Causing complications, delays, and ultimately again an increase in costs.

More price hikes will also be incurred if changes to VAT, tariffs, and clearance charges come into force.

The future
Planning with much more accuracy and focus, as well as not changing the foundations of what you have built your business on, should be what we take from Brexit.  Planning contingencies for any and all eventualities is what all businesses should have in their back pocket.

It’s also essential for courier companies to speak to their clients.  Identifying their fears, understanding their concerns, and answering, where possible:  How will Brexit affect pricing?  Will domestic deliveries continue? Will deliveries take longer?  Will deliveries even take place at all?

A professional courier service will see the bumps in the road ahead but have a plan on how they will iron them out, ensuring levels of service are not affected.  For example, could Brexit provide an opportunity to explore delivery fleets?  Being equipped and kitted out to deal with longer and delayed deliveries?  Is now the time to look to alternative tracking systems, additional storage facilities, etc.?

Unfortunately, Brexit offers a great deal of uncertainty for the shipping of goods and services, but we’re confident the shipping of goods and services will remain in some form.  We simply need to be better prepared and mindful of potential price increases, additional costs, and items taking longer than expected, etc.

Communication, and we mean crystal-clear communication will be key.

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