Haulage boss says Brexit challenge is ‘beyond belief’
SOARING COSTS AND EXTRA ADMIN
THE boss of one of Hull’s biggest haulage firms says six months on from Brexit has “seemed like a lifetime”.
The UK’S departure from the European Union has coincided with the Covid-19 pandemic and a worldwide shortage of HGV drivers to create the perfect storm for the logistics sector.
Managing director of Neill & Brown logistics group Colin Moody said: “From a logistics point of view, the challenges have been very difficult.
“At least we have managed to continue running most of our services, which is more than can be said for some other industries.
“Over the 40 years I have been involved in this industry there have been many different challenges but we have always seemed to get by and come out stronger.
“With Covid and Brexit, this is something completely different.
“The logistic sector is there to deliver our customers’ goods on time and in good condition, but at the moment it is very demanding.
“A shipment to Holland or Belgium used to take three days, now it’s fiveplus days to transit.
“The transit times have increased all around Europe and worldwide.”
Based in Livingstone Road in Hessle, the company was established in 1917 and now operates a fleet of 45 trucks. It has more than 200,000sq ft of warehousing and distribution space at three sites.
Speaking at a Humber Business Week event, Mr Moody said the firm had taken on 15 extra people just to deal with increased customs clearance and administration work now required under Brexit and the UK’S new independent trading status outside the EU.
He said: “We are still unsure whether this is going to be enough.
“For the moment we just have to carry on as we are, ensuring our staff get more training and see how things develop going forward.
“It’s only been six months since Brexit although it feels like a lifetime. and I am sure there will be more challenges to come our way.
“Before Brexit we did a lot of preparation work because we knew what was going to happen, although we didn’t realise it was going to happen quite like it did.
“It’s taken quite a while, but it’s getting there. We are seeing trailers coming in and getting cleared during the day which is working well for us. Back in January, they would be on the docks for three or four days.
“As well as taking on the extra staff for customs entries, the amount of administration we now have to do on the operational side is beyond belief.”
Mr Moody said soaring costs were also making it difficult to plan future investment in the business.
“Back in September 2020, a 40ft container rate from China would cost you approximately $2,000,” he said.
“At the moment, it’s costing $13,000 and you would still be unsure whether you could get a booking.
“It’s a very demanding time. It is all up in the air.”
He said new rules over the time UK drivers can spend working in Europe meant more uncertainty.
He said: “We were informed by the Road Haulage Association about two months ago there was a new rule in place in Europe for UK truck drivers.
“It means a driver is only allowed to be in Europe 90 days out of every 180.
“We are still trying to find out what impact this will have on the 25 trucks we have in Europe on a weekly basis.”
Speaking at the same event, Hullbased partner at global accountancy firm RSM Rowena Clifton said there had been “huge variations” in how local businesses had planned for Brexit, with many leaving it to the last minute.
She said: “Although things are better than they were in January or February, we are not out of the woods yet.”
A shipment to Holland or Belgium used to take three days, now it’s five-plus days to transit Colin Moody