FORWARDER magazine issue 61 by Freight Solutions

THE BREXIT SITUATION CAN A.I. FREE FORWARDERS from the log jam of international trade?

HOW HAS BREXIT AFFECTED LOGISTICS and handling services?

BECOME ACCUSTOMED TO CUSTOMS says Espace

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elcome to

CONTENTS

BREXIT NEW BRIEFING SECTION

19 IDCOVOVERY K RECUNCING BAC

AIR FREIGHT

SEA FREIGHT

ROAD FREIGHT

RAIL FREIGHT NEW SECTION

PROJECT CARGO

AIR & SEA PORTS

TECH & DIGITALISATION

EXHIBITIONS & EVENTS

CUSTOMS CLEARANCE

INDUSTRY SERVICES

TRAINING & NEW RECRUITMENT CONTENT

MERGERS & ACQUISITIONS

116

MEDIA & MARKETING

124 FORWARDER magazine

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OPERATIONS

ACCOUNTS

making information ﬂow… 4 FORWARDER magazine boxtop.net

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CRM

BOXTRAX

WAREHOUSING

WEB API’S

PO MANAGEMENT

WELCOME TO FORWARDER... A WORD FROM

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MEET THE TEAM

e hope you enjoyed our five-year landmark issue last

CRAIG EDITOR-IN-CHIEF

month. If you are reading this online and would like a hard copy sent to you, please get in touch with us.

craig@freightsolutions.com

ALAN EDITOR

Now, on with the programme...

editor@forwardermagazine.com

As you can see, we are featuring the services of FreightWebsite.design,

LUKE SALES MANAGER

so to learn a bit more about what’s on offer, turn to the media &

luke@freightsolutions.com +44 (0)7368 976 852

marketing section from page 124.

DOM ADVERTISING

Otherwise, it’s business as usual, so please enjoy the magazine...

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tim@forwardermagazine.com THE BREXIT SITUATION

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BREXIT BRIEFING

We delve into the opportunities (and the challenges) presented by Britain’s departure from the EU. Related topics Global trade agreements Border control Import/export balance

Sponsored by

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WANT TO KNOW MORE?

BUDGET 2021... 24 FEBRUARY 2021

Further information can be found at menzies.co.uk

CHANCELLOR MUST USE NEW POST-BREXIT FREEDOMS TO SUPPORT THE TRANSPORT & LOGISTICS SECTOR

o longer bound by EU state aid rules, Chancellor Rishi Sunak

The Government has already agreed to extend the £1m Annual

must use the Government’s Brexit freedoms to make fiscal

Investment Allowance limit to 1 January 2022, which will be helpful

changes that will support businesses in the hard-hit transport

for businesses incurring capital expenditure. However, they could

& logistics sector on the road to recovery and protect jobs.

go further by increasing the limit or broadening the scope of capital expenditure that might qualify, to include more structural costs.

With speculation mounting that the Chancellor might be preparing to introduce tax hikes to help pay for the pandemic, tax experts at

Andrew adds:

This Budget is the Chancellor’s first opportunity to

accountancy firm, Menzies LLP, are concerned that doing so could force

assert the UK’s independence from the EU. Enhancing tax reliefs in a way

more freight forwarders and other transport operators, which have been

that would target support for struggling businesses could deliver a much-

impacted by the current chaos at UK/EU borders, closer to insolvency.

needed economic boost and protect jobs. Specifically, help is needed to address the skills shortage in the sector and with unemployment

Instead, the Chancellor should be using his first post-Brexit Budget to

rising, tax incentives could be introduced to provide opportunities for

establish a tax regime that incentivises innovation and capital investment,

people who want to re-train. As well as providing more HGV drivers,

while helping to position the UK as a place that companies in the sector

incentives in this area could encourage more people to train as customs

will want to stay, invest and grow.

clearance specialists and warehouse operatives.

Now is definitely not the time to increase corporate taxes or reduce incentives for innovation and capital investment, as this will do nothing

ABOUT MENZIES

to help struggling transport operators to repair their business models

MENZIES is a top 25 accountancy firm in the UK. The

and prepare for a post-pandemic bounce back. There will be a time to

firm’s accountants, finance and business, and private client

recoup some of the cost of the pandemic, but promoting economic

advisors operate out of a network of offices across Surrey,

stability must come first. The Chancellor could for example change

Hampshire, London and Cardiff, providing our clients with easy

current corporate tax loss relief rules to allow losses incurred in the

access and local knowledge. Described as the ‘best performing

pandemic to be carried back for a longer period, in a similar way to

firm outside of the top 10’ by Accountancy Magazine, MENZIES

companies being able to reclaim tax in the 2008 recession. Alternatively,

has over 400 employees and an annual turnover of more than

he could be more creative still and allow loss-making businesses to offset

£40m. Menzies are members of HLB International, a global

losses against last year’s PAYE liability. Such changes would allow some

advisory and accounting network. HLB is ranked in the top 12

of the hardest-hit businesses to access a tax refund to support them

international accounting networks. It is a fast-growing, dynamic

on the road to recovery.

network of worldwide accounting firms and business advisors,

Andrew Galliers, Audit Director, Menzies LLP

servicing clients through its member firms in over 150 countries.

FORWARDER magazine

ISSUE61

BREXIT BRIEFING NEWS 15 FEBRUARY 2021

NEW GOVERNMENT FIGURES SHOW

35% OF UK IMPORTERS ARE STRUGGLING AT THE BORDERS

he latest ONS economy report highlights soaring problems

Customs duties

at Customs and a crisis developing in Northern Ireland trade,

• 26% of businesses experienced exporting challenges because of

warns the international delivery expert ParcelHero.

customs duties or levies, a big jump from the 16% of exporters reporting issues in the previous two-week period.

The latest Office for National Statistics (ONS) economy figures show

• Likewise, 26% experienced importing challenges because of

businesses are reporting spiralling Brexit challenges. Doubt has also

customs fees in the fortnight between 25 January–7 February,

been cast on the viability of the Northern Ireland protocol, says the

compared to 16% in the preceding two weeks.

international delivery expert ParcelHero. Transport costs, border disruption and customs duties problems soared in the two-week period

Perhaps even more concerning, in terms of both trade and politics,

between 24 January and 7 February.

are the escalating problems experienced by those shipping goods to Northern Ireland. The Northern Ireland Protocol is in danger of

ParcelHero’s Head of Consumer Research, David Jinks MILT, says

unraveling entirely if these trends continue.

the new figures highlight the full impact of Brexit on businesses: The ONS report, UK exporters and importers increasingly likely to face

A massive 44% of retailers and wholesalers reported the volume of goods

challenges, shows a sharp escalation in Brexit problems. They increased

they shipped to Northern Ireland decreased in the latest two-week period,

markedly in the two weeks from 25 January to 7 February compared to

compared to the previous fortnight. 31.5% of manufacturers reported their

the preceding fortnight, 11–24 January:

export volumes to Northern Ireland fell during the latest period. Of all businesses who had sent, or intended to send, goods from Great Britain to

Border disruption

Northern Ireland in the last two weeks, 38% reported sending fewer goods.

• 35% of businesses experienced importing challenges because of disruption at the UK borders. That’s up dramatically from the 25%

These problems will only escalate as a waiver on customs declarations

of importers reporting challenges in the previous two weeks.

on parcels sent from the rest of the United Kingdom to Northern

• Similarly, 25% of exporters recorded disruption at borders, compared to just 19% reporting disruption in the preceding fortnight.

Transport costs

Ireland runs out on 31 March, and certification requirements ramp-up on supermarket goods in April. The Government urgently needs to renegotiate these deadlines with the EU.

• 34% of businesses experienced exporting challenges because of a rise in transportation costs. That’s up significantly from the 25%

It’s not as if these issues were unpredictable. As long ago as 2016, our

experiencing transport cost issues in the previous two-week period.

pre-referendum report, Delivering Brexit: The true cost of leaving

• 30% experienced importing challenges because of a change in

the EU, predicted SMEs would face Brexit costs of around £163k in the

transport costs. Again, this is up significantly from the previous two

first year and a typical rise of 30% on the price of items purchased in the

weeks’ figure of 28%.

EU that had components originating outside Europe.

FORWARDER magazine

ISSUE61

WANT TO KNOW MORE? Further information can be found at unitedseaways.com

new direct shipping route, which will connect the UK and

levels, skilled workforce and ample operational space, the Port of Poole is

Morocco, is to be launched shortly. The route, which has

ideally set up to receive both accompanied and unaccompanied freight. To

been established by maritime and transport specialist, United

avoid unnecessary disruptions, we work closely with UK Border Control,

Seaways, will link Poole in Dorset to Tangier, Morocco.

Port Health, and the Animal & Plant Health Agency to ensure that all the necessary checks are carried out as efficiently as possible right here on

The new line has been in planning for over two years and will help

the port estate. We are the ‘can-do’ port and look forward to supporting

bypass post-Brexit traffic congestion and additional import procedures

the future growth of the UK import and export market.

on goods arriving via Europe. It will also significantly reduce emissions

Captain Brian Murphy,

compared to current logistic chains by road.

Marine & Port Director, Poole Harbour Commissioners

The route will run once per week and cut journey times on Moroccan

Our aim is to support businesses with post-Brexit, supply chain

goods to fewer than three days, compared to more than six days via road.

challenges and opportunities. This service will create a sustainable and environmental alternative when launched in the coming months. The

The route currently includes two ferry crossings - one from Morocco

speed and efficiency of the vessel ensures a longer shelf life for fresh

to Spain and one from North Europe to UK - but the new link will avoid

products whilst reducing road congestion, tolls and additional import

the associated bureaucratic Brexit procedures and the time delays the

procedures that have arisen since Brexit.

other crossings face. It will also be used to encourage British importers

Zeyd Fassi Fehri, MD United Seaways

to source fresh produce and other products directly from Morocco and Africa, promoting southbound trade and scaleup exchanges between the two kingdoms, which have a long-standing history of over 800 years.

The Kingdom of Morocco and the United Kingdom have close friendship and a connection which is over 800 years old. We welcome the new line to Tangier Med Port and know that its success will scale

We are very excited to be hosting United Seaways’ brand-new rollon-roll-off ferry service. It will reduce the time taken for goods to arrive

up the trade between Morocco and the UK. Mostafa Benhima, Senior Consultant with the Moroccan Team

by half and will see significant environmental benefits by reducing road freight. This is an exciting opportunity for UK, Moroccan and African

It’s fantastic to be part of a visionary organisation which thinks out

importers and exporters, who are looking to develop existing and establish

of the box. Whilst the project has been some years in the making, the

new business relationships. We will work closely with United Seaways to

timing of the start of the service could not be better.

ensure this service is a huge success. With our high customer satisfaction

Colin McMurray, Non-Exec Director 5 MARCH 2021

UNITED SEAWAYS LAUNCHES A

‘BREXIT BUSTER’ ROUTE FROM MOROCCO TO UK FORWARDER magazine

ISSUE61

BREXIT BRIEFING NEWS 12 MARCH 2021

STATEMENT FROM LOGISTICS UK ON

O.N.S. FIGURES REGARDING UK TRADE IN JANUARY 2021

The underlying trade in goods deficit widened by £4.0 billion in the three months to January 2021 (Table 2). While January 2021 saw falls in imports and exports these were offset by increasing imports and exports in November and December 2020. Goods imports increased £4.9billion while £0.8 The underlying The underlying trade in trade goods in goods deficit deficit widened widened by £4.0 byby billion £4.0 inbillion the three in(4.4%), the months three months togoods January toexports January 2021increased (Table 2021 (Table 2). by While 2). While billion insaw the three to January January January 2021(1.1%) saw 2021falls infalls imports in months imports and exports and exports these2021. were theseoffset were by offset increasing by increasing imports imports and exports and exports in November in November and December and December 2020. 2020. GoodsGoods imports imports increased increased by £4.9 bybillion £4.9 billion (4.4%),(4.4%), while goods while goods exports exports increased increased by £0.8 by £0.8 billion billion (1.1%)(1.1%) in the three in the months three months to January to January 2021. 2021. Increases in trade in goods imports were largely seen in machinery and transport equipment and chemicals. There was evidence of stockpiling for these commodities at the end of 2020, ahead of the end of the EU exit transition period, and the falls seenlargely in the largely month ofmachinery January 2021 likely because of and tradechemicals. being brought Increases Increases in trade in in trade goods in goods imports imports were were seen inseen in machinery and are transport and transport equipment equipment and chemicals. about the byfor ONS today (12 March also restrictions, but there have been improvements since forward. Imports of goods from EU were stockpiled in at November and December 2020, with decreases in Therepeaking There was evidence was evidence offigures stockpiling of published stockpiling for the these commodities these commodities at the end the ofCOVID-19 end 2020, of 2020, ahead ahead of the of end the ofend the of EU the exit EU exit imports in January 2021 being consistent with an unwinding of stockpiling. transition transition period, period, and the and falls the seen falls in seen the month in the month of January of January 2021 are 2021 likely are because likely because of trade of being trade brought being brought 2021), Alex Veitch, Logistics UK’s General Manager of Public then in the flow of goods across the UK’s border. Following yesterday’s forward. forward. Imports Imports of goods of goods from the from EUthe were EUstockpiled were stockpiled in November in November and December and December 2020, 2020, with decreases with decreases in in Policy, said: announcement imports imports in January in January 2021 being 2021 consistent being consistent with anwith unwinding an unwinding of stockpiling. of stockpiling. of an extension on the grace periods for checks on The trade in services surplus narrowed £2.7 billion in the three months January 2021, as exports fell £5.1 imports, it istoimperative that both government and industry use the billion (8.3%) and imports by a lesser £2.4 billion (7.0%). Falls in exports and imports were largely seen in travel, Today’s announcement of UK export levels atbillion the start extra time provided to ensure the entire supply chain is ready for the transportation, and other business services. The trade The in trade services in services surplus surplus narrowed narrowed £2.7 £2.7 billion in theofthree inthe the months three months to January to January 2021, 2021, as exports as exports fell £5.1 fell £5.1 billion billion (8.3%) (8.3%) and imports and imports by a lesser by a lesser £2.4 billion £2.4 billion (7.0%). (7.0%). Falls in Falls exports in exports and imports and imports were largely were largely seen in seen travel, in year by ONS are broadly in line with the survey evidence we have introduction of further border controls. This willtravel, minimise delays in transportation, transportation, and other and business other business services. services. gathered from our3: member companies about the impact ofprecious Brexit onmetals, the supply chaininand to keep business and industry Figure The total trade deficit, excluding widened thehelp three months to January 2021stocked with their work in early 2021. The figures show that there were issues in the materials and products they need. balances, excluding non-monetary gold and other precious metals, on three-months, to FigureUK Figure 3:trade The3: total Thetrade total deficit, trade deficit, excluding excluding precious precious metals, metals, widened widened inthree-months the in three the months three months to January toJanuary January 20212019 2021 January, perhaps caused by the implementation of new processes but January 2021

UK trade UKbalances, trade balances, excluding excluding non-monetary non-monetary gold and gold other andprecious other precious metals,metals, three-months three-months on three-months, on three-months, January January 2019 to2019 to January January 2021 2021

FORWARDER magazine

ISSUE61

Source: Office for National Statistics – UK trade statistics

Source:Source: Office for Office National for National Statistics Statistics – UK trade – UKstatistics trade statistics

ogistics UK, the business group representing more than 18,000

Logistics is the lifeblood of UK PLC – it is vital to all elements

businesses across the UK’s logistics sector, has been invited to

of trade and the economy, particularly as the nation looks to

join the government’s Brexit Business Taskforce.

build new trading relationships after the UK’s departure from the EU. We are delighted that the importance of the sector has

The invitation, made by Chancellor of the Duchy of Lancaster Michael

been recognised at the highest levels of government and look

Gove MP, is in recognition of the group’s work helping government

forward to continuing our constructive dialogue with them to

to keep Britain trading throughout the Brexit process. And, as David

achieve the best possible outcomes for our members and the

Wells, Logistics UK’s Chief Executive explains, the move acknowledges

wider business community.

the vital role which the industry plays in keeping all parts of the economy functioning:

The Brexit Business Taskforce was established by Cabinet Office in November 2020 to help businesses address the challenges

ABOUT LOGISTICS UK

posed by new trading arrangements with the EU from 1 January

Logistics UK (formerly FTA) is one of the UK’s leading business

time ‘an important forum for frequent dialogue and problem

groups, representing logistics businesses which are vital to

solving.’ Other members of the group include the CBI, Institute

keeping the UK trading, and more than seven million people

of Directors, MAKE UK, Chambers of Commerce and the

directly employed in the making, selling and moving of goods.

Federation of Small Business.

2021, and was designed to provide, as Mr Gove said at the

With COVID-19, Brexit, new technology and other disruptive forces driving change in the way goods move across borders

Throughout the Brexit process, and particularly during

and through the supply chain, logistics has never been more

the COVID-19 pandemic, Logistics UK has established

important to UK plc. Logistics UK supports, shapes and stands

a reputation for providing evidence-based advice and

up for safe and efficient logistics, and is the only business group

pragmatic solutions to problems for government,

which represents the whole industry, with members from

said Mr Wells.

the road, rail, sea and air industries, as well as the buyers of

Gove and the wider taskforce team to continue this work and

freight services such as retailers and manufacturers whose

reinforce the reputation of logistics as a key sector within the

businesses depend on the efficient movement of goods. For

British economy among politicians, business leaders and the wider

more information about the organisation and its work, including

population.

I look forward to working closely with Mr

its ground-breaking research into the impacts of COVID-19 on the whole supply chain, please visit logistics.org.uk

18 JANUARY 2021

LOGISTICS UK INVITED TO JOIN

KEY GOVERNMENT BREXIT TASK FORCE FORWARDER magazine

ISSUE61

BREXIT BRIEFING NEWS

BECOME ACCUSTOMED TO CUSTOMS 2 MARCH 2021

SAYS ESPACE

t 11pm, 31st December 2020, we left the Single Market and

The lack of competent UK and EU customs agents is a real worry.

the EU customs union enabling us to cut our own trade deals

There were rumours that the Customs Intermediary Grant programme

and make Great Britain a global trading power like no other.

was running out of funds at a time when we need to encourage more companies to offer customs services.

Well, that was the idea, but the opposite has happened. UK exporters and European logistics companies have been exposed to a system

Freight rates are soaring as availability of equipment is at an all-time

not fit for purpose, causing massive delays at ports and warehouses

low. EU hauliers have little appetite to send their drivers to the UK as

full of shipments with missing or incomplete customs paperwork.

many face days trying to exit the UK due to problems with customs

EU customers have been forced to wait days to get their stock as UK

paperwork / inability to get a T1 document. Some EU hauliers now are

traders struggle to access transit guarantees, find a customs agent and

charging their EU customers for an empty return leg from the UK as

navigate their way through the new customs requirements.

empty trailers returning to the EU do not need any customs paperwork. It is therefore becoming harder and harder to find driver-accompanied

We are receiving a barrage of calls and emails from UK exporters as

trailers to got to Europe from the UK.

well as UK and EU hauliers to complete customs documents for them. Many people have been let down by their preferred agent as they simply

Major confusion over EIDR (Entry in Declarants Records) deferred

cannot cope with the workloads they are being presented with.

declaration scheme with EU hauliers and logistics companies. Many continue to ask for a Simplified Frontier Declaration number so they

The main issue is transit guarantees. If a driver with a full load for Italy

can ship to the UK. This is not necessary if the UK importer is running

enters the EU at Calais, he will need a T1 document to be able to exit

EIDR. With the import simplifications coming to an end on 30th June,

the UK. This allows for the suspension of the EU VAT until the driver

we foresee more problems getting EU goods into the UK as it is unlikely

arrives at an EU customs office in the country for the delivery. There is

that we will have enough customs agents in place by then with the

very little appetite amongst UK customs agents to issue these T1s. They

relevant CFSP authorisations.

are reliant on the driver to follow the correct procedure to discharge the T1 or the liability for the EU VAT could fall back onto them. There

We and many in our industry foresaw all these problems. We can be

are simply not enough companies offering this customs procedure to

part of the solution if the Government listens to us. I have written to

service the huge demand for it. Also, the system used to issue and

Boris Johnson, Michael Gove and Grant Shapps to point out the major

control the transit movement is experiencing high volumes of entries

problems around the issuing of T1 documents. I have also started a

and is slow to respond with acceptances. Physical infrastructure too

Government petition Listen to the U.K European logistics industry

is lacking to start transit. The Government Inland Customs office in

to stop the current carnage. We need 10,000 signatures to get it

Ashford where the T1s are issued and started, had to close for a day

delivered to the Prime Minister.

due to ‘issues.’ All drivers needing T1s were sent to Manston Airport to wait until the site re-opened.

The best way out of the mess we are in is to ask the people sorting the mess day in, day out.

FORWARDER magazine

ISSUE61

– and vSMART, our agile partner interface. To ensure all bookings were compliant at both ends, NNR designed a bespoke online booking form to be

completed by all suppliers for each order with highlighted mandatory fields and attachment capability in order for the booking to be accepted. Once

asting our mind back to what seems like a lifetime ago, January

accepted the booking data populates all the required information into our

2020 to be exact, the NNR team began engaging with our

Tracking platform, to enable full visibility for our import team and supporting

customers regarding the seemingly inevitable truck-crash that

the population of data for the customs entry. Each milestone is recorded from

would be January 1st 2021. Lead by our resident experts, our Brexit

the moment the shipment is booked, departed, arrived, customs cleared and

Team began preparing and accumulating knowledge to prepare, best we

ultimately delivered to the customer, all visible in the same platform. This is

could, for the two possible outcomes: ‘Deal or No deal.’

enhanced for easy viewing by our simple ‘traffic light’ system based upon date and process map position:

Either way, our best advice was to prepare well, prepare early and ensure sufficient stock was available to endure the inevitable delays that hundreds

• Red for all shipments which are yet to be submitted to UK customs

of thousands of newly-required customs declarations would surely incur. Of

• Amber for customs declared but awaiting customs clearance

course, at that moment we could not envisage a pandemic and the short-

• Green customs cleared and delivery en-route

supply of products that would follow. Naturally, companies understanding and planning for Brexit also suffered from the impact of the Coronavirus

In addition, all the supplier’s commercial invoices, packing lists and any

pandemic where resources were stretched thinly and focus switched to

paperwork required are available to download. The available downloads

health and safety planning whilst adapting to new working environments.

also latterly include the UK customs entries, providing full visibility of any charges paid to HRMC and NNR’s invoice for the processing of

Meanwhile, one major household name, a major food brand and

each shipment – all indexed by the customer’s PO references. This

importer into the UK, were deep in discussion with NNR regarding

information can be downloaded into a variety of formats or transmitted

how best to simplify the process and anticipated controls required.

directly into our customer’s own ERP system.

They subsequently announced NNR as their newly-appointed exclusive partner for the customs clearance of food products into the UK from

To date, all shipments have moved seamlessly from the start of Brexit

the EU post-Brexit. Impressed with our high-level of expertise, forward

and we expect this to continue. With our pragmatic and risk-based

planning and regular information updates on Brexit, NNR were assigned

outlook, we are always looking ahead for any potential changes to

to automate the sharing of data to ensure fluidity for all stakeholders.

legislation or regulation to facilitate swift change. This is an integral part of our ‘KAIZEN’ continuous improvement programme which is in

Our Brexit teams, complemented by our Account management team,

the DNA of NNR Global Logistics.

worked closely with the customer and their suppliers to provide a suitable IT solution; combining our unique vNEXT operating platform 18 JANUARY 2021

NNR...

EASY-TO-DIGEST FOOD TRANSPORT SOLUTIONS FORWARDER magazine

ISSUE61

BREXIT BRIEFING Q&A

THE BREXIT SITUATION FEBRUARY 2021

AS SEEN BY MICHAEL JONES, ILG UK

an you describe actual

Have you encountered any personnel issues

stories of how you

with EU staff leaving?

have been affected as

No, quite the opposite infact. This has allowed us to send employed

a business by Brexit?

staff to our European Warehouse either for relocation closer to home

I was about to sit down with my family on

or on a secondment basis. Having ILG people in our European facility

Christmas Eve when I received a call from

from day 1 is going to be crucial to the success of our newest venture.

a colleague asking me if I had popped the Champagne cork to celebrate a trade deal. Far from it I said, as I did not

In truth, is it COVID-19 or the end of Brexit

see that the trade deal was going to help us from 1st January, especially this

transition that has kept you awake at night?

close to the deadline and knowing a lot of clients and suppliers’ key personnel

COVID-19 was something that gave us sleepless nights at the start of

were on holiday for the festive period. I put the phone down with a degree

the first lockdown but ILG’s growth in 2020 can be attributed to largely

of uncertainty trying to picture day 1 back in the office outside of the single

because of COVID-19. This gave us sleepless nights for the right reasons

market. On reflection to seeing our Prime Minister pat himself on the back

as we started to smash records month on month and allowed us the

in front of the nation, I did not know what to expect but I had a sense of

time prior to our peak season to plan based on the peak volumes we

confidence knowing that whatever the industry had thrown at us in previous

were seeing at the time. Brexit has given us different challenges but it

years, ILG had always come through it relatively unscathed. Coming back

has seemed like a much longer road to success with it and at the time

to work in January I had an element of excitement going into an unknown

of writing, we are still having to make changes to systems in order to

situation but that soon vanished with what I can only describe as the worst

keep up with developments. COVID-19 opened our eyes to volumes we

time in logistics I have known in my 10 years. The Brexit fallout has given me

could only dream of but Brexit has delivered different challenges that

and countless colleagues sleepless nights and an untold amount of stress. The

we have had to overcome in record time.

topic engulfed my day from 7am through to 11pm on some nights as uncertainty, confusion and a general lack of understanding from both our suppliers and

Have you encountered any issue with sending goods

clients meant nothing else was possible for at least a month into the new year.

to Northern Ireland or have you held back to see how it all unfolds?

What opportunities have you spotted for your business

Our clients have largely held back but we are now preparing for the

in the coming months and years following Brexit?

fallout as we approach 1st April. By not selling these products it pushes

ILG were preparing for Brexit well in advance and set our intentions out

us to look at different solutions for a range of clients but from the

very early on with commitment to a European warehouse in 2021. The

outside looking in, the advice seems fairly lacking and the subject seems

Brexit deal only confirmed what a good decision this was. One of key

to have been untouched for some time. It would not surprise me if the

USP’s is our purchasing power and our courier services are extremely

extension is granted that allows further preparation time but this has

cost effective for any return on investment and we soon had enquiries

been an area we have largely left alone

from European companies who were struggling to access their UK market without additional fees and delays. We are in the process of launching

Will you expand your UK sales activity post-Brexit?

a cross dock product for businesses in Europe to take advantage of

Yes, ILG are a solutions provider and we will continue to increase sales

providing any product that is sent to ILG to forward is pre sold.

within the UK at every opportunity.

FORWARDER magazine

ISSUE61

How prepared were you for the end of the transition? ILG were as prepared as we could be but a large part of our business is dependant on our suppliers and their capabilities. There were a lot of changes made to IT & API routes that were finalised very close to the deadline and there was never going to be enough time or resource for these

In the end, will your business be more or less

to be tested to the degree we would have liked to. Anything ILG could

with EU customers in a year’s time?

plan for was done well in advance, we kept our clients up to date with any

I truly believe this will be more, we are due to open our first European

changes and enhancements but as the product was not ours to sell, we

facility in Poland and this will only drive business from existing clients

were limited and relied heavily on our clients to be ready as well as ILG.

and new prospects. We have other benefits to use that will increase business for our clients who ship to the EU and this will only continue

Have you found enough British government advice

to drive growth for ILG and our clients.

or support for the ending of the transition period? The advice is there but it is the sort of advice you need to read once,

If you are continuing to do business to or from

twice maybe five times to make sense of it all and decipher what is

the EU, which mode would you use – air, rail, road,

relevant to your business and clients and what is not. A large number

short sea, or a combination of these?

of clients had a lot of trouble looking for the right information and leant

It largely depends on a few factors. For ILG to make suggestions for our

on ILG for our advice and recommendations.

clients we look at their target market, the product and its value, what levels of cost absorption (DDP Fees etc) does the client want to handle and

Are you operating in a sector

then make a decision based on this. For now the most cost efficient route

that actually had much business with the EU?

to the EU is via road shipping, there are lower carrier surcharges to take

A lot of our Ecommerce clients have very unique and niche products meaning

into account and not all export charges and additional costs are the same

their target market has expanded over the years. The challenge they now face

with each carrier. This has changed behaviour in our clients and the routes

in shipping to their EU market has changed overnight, some have continued

they take to the EU and I have no doubt that if this route continues to

along the same path and have taken the option to absorb DDP charges to

work for them then they would not hesitate to remain how they are. We

keep serving their clients but others have stopped shipping altogether. Our

are having to manage expectations across the board as to how dramatically

European shipping profile has changed dramatically from one month to the

the service levels and speed of delivery has changed from one service to

next, nearly all shipments are being sent on cheaper slower services due to

the other. Clients of ours still have an expectation that sending express air

additional charges for our suppliers and it is a very different outlook for a lot

will achieve next day delivery from the UK to most EU destinations but

of our clients now than it was when we were in the single market.

the reality is hugely different, especially with the additional information at receiver and product level that are now required. If the main integrators

Have you found the paperwork now associated

who service Air Express want to retain or gain business back then sooner

with export to or import from the EU impossible

or later they are going to have to look at what they feel is acceptable to

to complete or actually not a problem?

charge on top of the courier costs. DHL Express for example have chosen

ILG do not tend to get involved with the paperwork side of things as this is

to charge an additional £0.25 per KG with a minimum charge of £4.50.

covered within the courier services we purchase but we have seen delays

Considering most Ecommerce business falls into the lower weight scale at

due to incomplete data, missing or inaccurate information and have had to

around 2KG-3KG, you are adding a considerable amount more to a service

deal with many more parcel exceptions in one month than were dealt with

that at the time of writing is no better than sending via a road service. I

in Q4 2020. Each supplier we work with has a different way of working

sincerely hope they realise how much this has put a lot of exporters off

but we are seeing that basic information such as contact name, email

shipping to the EU but it does seem that this will come back to haunt them

address and phone number are huge contributors to these exceptions.

the longer they intend to charge these fees. FORWARDER magazine

ISSUE61

BREXIT BRIEFING EXPERTS

s UK businesses continue to adjust to the new Brexit

The Brexit burden

arrangements, the freight forwarding industry is battling its

Fears of wastage are particularly prevalent right now. Indeed, UK

way through a blizzard of paperwork.

Government ministers have admitted that up to 142,000 tonnes of food could be wasted over the first six months of 2021 because of

Employing an army of people to manage the additional administration is

Brexit border disruption. The boss of DH Foods recently admitted

only half of the challenge. The other half is updating manual processes

that incorrectly prepared documents led to five containers full of pork

which remains stuck in the dark ages and involve an enormous volume

being left to rot at a port in the Netherlands, while seafood wholesaler

of documents and unsorted data.

The Stickleback Fish Company has been forced to discard thousands of pounds’ worth of fish each week due to post-Brexit paperwork.

The Bill of Lading, for example, dates as far back as the late 1300s, and yet is still widely used in transporting freight worldwide today. This is in

Tackling the problem

addition to the commercial invoices, airway bills, certificates of origin,

What’s clear is that, if left unchecked, the increased paperwork will

packing lists, arrival notices, customs declarations and export health

severely impact companies’ long-term operations and thwart growth.

certificates that are required for processing cross-border transactions. It’s no wonder outdated and cumbersome paperwork has been blamed

To put it into perspective, a fish merchant exporting just one lorry

for the recent delays and disruption in our supply chains.

of fish into the EU is now required to provide 71 pages of paperwork which includes catch certificates, export health certificates (in both

It’s the little things

English and French), the statement of value and 22 invoices. In total,

Understanding and actioning vast swathes of freight paperwork demands

it is estimated that freight forwarders will need to process an extra

hundreds – if not thousands – of employee-hours to manually check and

200 million customs declarations every year, compared with roughly

input the data into each forwarder’s systems.

55 million before Brexit.

Even a straightforward screening process such as checking the consistency

Without some sort of further, extensive trade agreement, the problem

of a consignment number across multiple pages of documents can be

isn’t going to go away, which is why the freight forwarding industry needs

incredibly painful and time-consuming. And it’s just one of the many

to change the way it processes paperwork.

monotonous tasks that dominate the day-to-day activity of account handlers who could be spending their time on other more valuable

One solution is to hire more staff, if there’s budget, which could be a

activities like delivering great customer service and driving growth.

good thing as the world continues to battle the economic damage of the pandemic. Another is to work towards the introduction of a global

Freight forwarders that rely solely on manpower to process paperwork

standard that is required for all documents. Yet, in a highly fragmented

also leave themselves, and their customers, open to errors that may cost

market, no single party holds the power or permission to dictate a new,

time and money. For example, incorrectly inputting a weight or date can

singular digital standard, so this idea seems unlikely, to say the least.

trigger a communication back to the supplier to seek correction, causing a delay to the item being shipped. If one small sub-shipment is wrong, it

Instead we must look to technology to help freight forwarders make

can hold up an entire shipment at customs. It’s perhaps no surprise to

customs transactions run as smoothly as possible. In fact, the UN

learn that, post-Brexit, the industry is already encountering increased

estimates that, by digitising trade paperwork processing, companies

storage costs, late delivery penalties and, in the case of perishable

could cut costs by 31% and time by 44%. And this is before we add

goods, more wastage.

Artificial Intelligence (AI) to the mix.

FORWARDER magazine

ISSUE61

WANT TO KNOW MORE? Further information can be found at vector.ai

The latest AI technology has the power to extract complex

Of course, every cross-border transaction is still going to be

and unstructured data found in paperwork and turn it into

subject to a huge amount of paperwork – this is something

ordered digital form. It’s also able to capture the nuances in

that forwarders simply have to get used to in the post-

customs and freight documents as well as recognise diverse

Brexit world. However, thanks to AI, paperwork needn’t

layouts, handwriting and tables. And, because modern AI

been slow, error-prone and expensive. By bringing these

approaches have a feedback loop which learns over time,

processes into the modern day, it is possible for forwarders

they’re more robust and dynamic than the often template-

to free the log jam of international trade and get on with

driven off-the shelf Optical Character Recognition (OCR)-

business once more.

only approaches. James Coombes, CEO & co-founder of vector.ai Arguably, then, AI could be the silver bullet that freight forwarders so desperately need. With one freight forwarder we recently worked with, its first transaction using AI reduced a typically 40 minute-long task down to just four minutes. With another, it’s making up to 75% costs savings on the processing of every shipment.

CAN A.I. FREE FORWARDERS FROM THE LOG JAM OF INTERNATIONAL TRADE? FORWARDER magazine

ISSUE61

BREXIT BRIEFING EXPERTS

HOW HAS BREXIT AFFECTED LOGISTICS & HANDLING SERVICES?

ince the new year, the impact of Brexit has had a clear effect

The effect on suppliers

on every stage of the logistics process, from transport fees

The Brexit deal left SME’s within FMCG specifically unprepared and

and new limitations to restrictions on imported goods.

in a state of loss moving forwards due to associating logistics costs,

According to new research, 50% of UK business decision makers felt

with many forced to cut off sales to the EU which in turn hinders

that Brexit uncertainty had negatively impacted their supply chain in

businesses ability to scale on an international level, meaning bottom

the last five years , with this only set to increase as the full effect of

lines will also decrease. Logistics providers are still working their

Brexit becomes clear. As the difficulties of Brexit continue to hinder

way around the new regulations and pricings to be able to offer

many logistical businesses at every turn, flexible logistics platform

transport packages into the EU, which is anticipated to become

Trident Worldwide has assessed the impact across the industry.

smoother once the transition period is over.

What are the biggest effects?

In addition, suppliers in the UK have stockpiled prior to Brexit

UK logistics companies have had to adapt to huge

on medications and other emergency items, with three insulin

changes, including:

suppliers for Diabetes UK already assuring the charity that they will

be holding insulin stock to ensure continuous supply of at least four Custom changes have been introduced as we saw the end of free

months2 . However, this was not an option for some other sectors,

trade between Britain and the EU. This means more paperwork and

such as FMCGs, as a lack of warehousing facilities and a short shelf

meeting new product standards which are stricter, particularly when

life made this seemingly impossible.

trading restricted goods and livestock to name a few. There have been disruptions to the medical supply-chain more so Supply-chain disruption has seen huge delays in custom checks

than ever as deliveries are stopped at the borders due to a lack of

at British ports causing a backlog of demand to major supply chains

customs clearance. This has led to a shortage in medication supplies.

including grocery and manufacturing industries, however this is

This has been an ongoing issue pre-Brexit but has pushed the need

anticipated to ease after the adjustment period.

to streamline the supply-chain more than ever to ensure patients have the medication they need.

Regulation changes have altered UK trading standards away

Beth Hawley,

from European standards when it comes to workers’ rights and

Healthcare & Pharmaceutical Account Manager, Trident Worldwide

consumer protection.

FORWARDER magazine

ISSUE61

WANT TO KNOW MORE? Further information can be found at trident-ww.com

Transportation

Manufacturers I've spoken to at the start of this year have

Road haulage, air freight and maritime transport

explained that their main issue was of course the changes in

has all been affected:

documentation and how not providing the correct information causes huge delays, and in some cases, penalties from customs which

Road haulage is the most dominant mode of transport in the UK,

is affecting businesses massively. This has caused them to change

with most goods imported to and exported from the UK by road

their shipping Incoterms more to X-works and FCA in order for

are handled by overseas hauliers. UK hauliers account for 8% of

the financial and timing responsibilities to be placed more on their

total haulage activity in the EU , meaning negative implications in

customers rather than themselves.

the UK and EU as new administration hurdles, delays at ports, and

Will Annand, Manufacturing Account Manager, Trident Worldwide

mandatory border checks come into play. 1 https://www.sourcetoday.com/supply-chain/article/21867492

However, air freight cargo services have soared due to ocean

/how-is-brexit-disrupting-the-worlds-supply-chains

congestion and sea freight supply chain issues and additional

2 https://ifa-forwarding.net/blog/news/impact-of-brexit-on-logistics-

hurdles, with a growth of 200% in January compared to January

companies-and-suppliers/

2020 , making air capacity stretched to the maximum as logistics

3 https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/

businesses attempt to find the quickest and most effective solutions.

international-markets/deloitte-uk-brexit-industry-insights-logistics.pdf

4 https://www.lloydsloadinglist.com/freight-directory/news /Air-freight-charter-volumes-soar-due-to-ocean-congestion-PPE-surge -and-Brexit/78483.htm#.YC_VwOj7SUk

FORWARDER magazine

ISSUE61

COVID-19 RECOVERY

Hopefully the most short-lived section of FORWARDER, we'll bring you word on how the industry is recovering from this crisis and focus on positive stories about a world bouncing back. Related topics SARS-CoV-19 coronavirus Government measures Industry reactions

16 16 FORWARDER magazine

ISSUE61

28 JANUARY 2021

DP WORLD & UNICEF ANNOUNCE

GLOBAL PARTNERSHIP TO SUPPORT COVID-19 VACCINATION

P World and UNICEF have announced a wide-ranging partnership to support the global distribution of COVID-19 vaccines and related immunisation supplies in low- and lower-

middle-income countries. The new partnership - with a multi-million dollar value - is the largest to date to support UNICEF's lead role in procuring and supplying 2 billion doses of COVID-19 vaccines and auxiliary vaccination supplies on behalf of the COVAX Facility. DP World and UNICEF will also collaborate on other global programs in support of education, health, women's empowerment and water and sanitation. Distributing COVID-19 vaccines is humanity's biggest logistics DP World, a leader in global end-to-end supply chain logistics, will

challenge since the end of the Second World War. We offer our

provide UNICEF with logistics solutions and supply-chain expertise.

infrastructure and expertise to support this effort because everyone

By using DP World's warehouse facilities in Dubai, UNICEF will

should have access to vaccines, especially the most vulnerable in our

have optimized access to many countries. In addition, DP World has

society. Unless the vaccine is available to all, the pandemic will not

committed to leveraging its global logistics infrastructure and services

end for anyone.

on a pro-bono basis in support of COVID-19 vaccine logistics needs,

Sultan Ahmed bin Sulayem

including transport, port and storage requirements in countries where DP World is present. Dubai is currently used by UNICEF as a strategic

The pandemic has turned children's world upside down, disrupting

hub for pre-positioning auxiliary materials needed for the COVID-19

their education, health and protection. Vaccines will be a big step

vaccine campaigns, such as syringes and safety boxes.

towards putting children's lives back on track. This new partnership will support our collective efforts to ensure equitable, affordable and

The partnership was signed by Henrietta Fore, UNICEF Executive

sustainable access to COVID-19 vaccines.

Director, and Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP

Henrietta Fore, Executive Director, UNICEF

World. It arose from UNICEF's collaboration with the World Economic Forum's Supply Chain and Transport Community, of which DP World is

Under this partnership, DP World and UNICEF will also collaborate

a member and explores how the community collectively could support

to address logistical bottlenecks hindering children and their families'

an equitable access to the COVID-19 vaccines globally.

access to essential supplies through advocacy and sharing of knowledge and expertise. FORWARDER magazine

ISSUE61

COVID-19 RECOVERY NEWS 3 MARCH 2021

BUDGET SETS A

STRONG FOUNDATION FOR ECONOMIC RECOVERYSAYS LOGISTICS UK

easures included in the Budget provide a strong foundation

great news for businesses in the logistics industry which rely on sectors

for economic recovery, according to Logistics UK, one of

of the economy like retail and hospitality which are yet to reopen.

the UK’s biggest business groups. But while there are many

Today’s announcement will provide reassurance for those employed

positive decisions – including a freeze in fuel duty and extension to the

across the sector, and ensure that logistics businesses can maintain their

furloughing scheme – we need to see greater investment in training

workforce, ready to go as soon as the economy reopens.

programmes to help fill the growing vacancies in the industry. Responding to the announcement of a rise in corporation tax in 2023, Funding to train new entrants to the logistics sector is particularly

and the extension of the business rates holiday until June 2021 before

welcome at a time when the industry is suffering significant skills gaps and

a discounted rate is introduced, Mr Veitch adds:

Many logistics

the loss of EU workers, and a more flexible approach to apprenticeships

businesses are still to recover fully from the impact of COVID-19, with a

will also assist the sector in recruiting the next generation of logistics

large proportion of the industry still in limbo as a result of the continued

employees. However, the industry needs new recruits now, and a more

closure of sectors such as entertainment and hospitality.  It is vital that

flexible method of providing direct support to those looking to retrain

business is not penalised by additional taxation at this crucial time in the

and reskill into vital operational roles like HGV drivers and transport

economic recovery, particularly as the logistics sector is the one which

managers would help that transition.  The average cost for a 12-month

drives all other sectors, delivering the raw materials and finished goods

apprenticeship training and license acquisition is £7,000 – Logistics UK

needed to boost trade and competitiveness.

would like to see more immediate government support, in the form of interest-free loans or grants, to be made available now to help switch

On the news of the infrastructure bank launch, Mr Veitch comments:

those affected by the pandemic into the vacancies which are open now,

Today’s commitment to a multibillion-pound investment into

and help with the economic recovery from COVID-19.

infrastructure is welcome news for the logistics industry. Efficient and

Alex Veitch, General Manager of Public Policy, Logistics UK

effective transport infrastructure is vital for logistics to be able to support the needs of UK businesses; the importance of a strong and

On the announcement that fuel duty will be frozen, Mr Veitch

resilient network to economic recovery must not be underestimated.

comments:

As the economy starts to recover from the impact of

Logistics UK also welcomes the government's commitment to a Freeport

the COVID-19 pandemic, Logistics UK and its member businesses are

programme, with the confirmation of eight successful Freeport bids. We

grateful for the news of a continued fuel duty freeze.  At a time when

are confident these will support business and industry in these locations

many businesses are yet to open up fully, or to see the first signs of

and urge the government considers expanding the programme.

recovery, another charge to already fragile balance sheets could have been catastrophic for the organisations which are at the heart of every element of the economy. The continuation of the furlough scheme is

FORWARDER magazine

ISSUE61

WANT TO KNOW MORE?

eeds-based auto engineering and vehicle safety specialist SM UK has invested £200,000 to develop a fleet Covid-safe vehicles

Further information can be found at smuk.co.uk

designed to provide workers with a secure and virus-free

environment to eat and keep clean while working on remote sites. The first vehicles of their kind to be produced in Yorkshire, each welfare

As well as developing its own fleet, SM UK is also offering conversions

van is equipped with bespoke features such as sanitising stations, toilet

for businesses with their own vans. Mr MacDonald said:

facilities, a kitchen area and seating.

into bespoke van conversions a few years ago, offering customisable

We expanded

solutions from a single van to a nationwide fleet. Now, with the There is a growing demand for welfare vans as a result of Covid

addition of the welfare features, we can install racking, lighting, safety

and this will help us reach new markets, as well as expand our offering

equipment and more while taking into account the van’s uses, allowing

to existing clients. Safety is always at the forefront of everything we

us to transform it into exactly what the company needs for business.

do, from our crash-tested seats to hand-sanitising stations. Many of our customers are in the construction industry and these vehicles are

Established in 2000, SM UK works with some of the UK’s largest fleets

valuable assets for sites. They provide a great, Covid-secure base for

to ensure their drivers have improved visibility of blind spots, reducing

anyone working in highway maintenance, rail, utilities, remote locations,

accidents and making roads safer. The firm, which employs 60 people

or for teams working across different sites.

across its Leeds head office and workshops in Leeds and Tamworth,

Steve MacDonald, Managing Director, SM UK

expects to create ten new engineering and office-based roles in 2021.

Alongside welfare areas, the new vans will be equipped with SM UK’s roof-mounted solar panel, a unique feature which helps reduce emissions, oil use and engine wear. Each vehicle will also be fitted with the firm’s innovative Scene Lighting system, which improves safety by brightly illuminating the surrounding area.

8 FEBRUARY 2021

LEEDS ENGINEER INVESTS £200,000 TO PRODUCE

YORKSHIRE’S FIRST COVID-SAFE WELFARE VEHICLES FORWARDER magazine

ISSUE61

COVID-19 RECOVERY NEWS 25 FEBRAURY 2021