DSV Road has bumped up its surcharge levels to Europe by 25% to cover the cost of Brexit-related border delays and capacity issues.
In a letter sent to clients last week and seen by motortransport.co.uk, DSV Road said the situation at the border ports has “severely worsened”, requiring a 25% hike in its surcharge to all European countries and a 15% increase in surcharges for deliveries to Scandinavia.
The letter states: “The increase in processes brought about by Brexit since 1 January has resulted in long delays both inbound and outbound from the UK due to customs clearance issues.
“The situation has been further compounded by a lack of capacity in the market due to the reluctance of hauliers to come into the UK, due to the additional customs requirements and current coronavirus testing.”
Under current rules drivers must produce a negative Covid-19 test within 72 hours of leaving the UK which has also created queues at UK border posts.
Pointing to “other large carriers” who have recently suspended road services to and from Europe, the company insists that keeping goods moving for customers is its “absolute priority” but points out that long waiting times both in the UK and the EU and the issue of “severely” reduced capacity has resulted in a “sharp rise” in the firm’s operating costs.
It adds: “Unfortunately as a result of the situation we are currently faced with we have no alternative but to increase the Supply Chain Impact surcharge level.”
The letter states that charges apply to all supply chain movements to Europe from 21 January and will be reviewed on a weekly basis.
DSV Road’s decision follows DFDS’s decision to suspend its deliveries of fresh Scottish seafood to the EU earlier this month.
In the same week, DB Schenker suspended its land transport deliveries to the UK in response to “enormous bureaucratic regulations created by Brexit".
Rod McKenzie, RHA MD of policy and public affairs told MT that he expects to see more operators forced to pass on the additional costs incurred by Brexit customs delay and the impact of Covid testing at the border.
“I am not surprised the additional costs are being passed on by operators," he said. "It is a substantial extra cost that we are seeing at the moment with empty backload going into Europe and simple delays due to Covid testing. These are companies with relatively small margins and these are costs that are not easily absorbed."
DSV Road has yet to respond to requests for comment.