This week think tank Open Europe launched its ‘Brexit Barometer’, predicting the likelihood of the United Kingdom leaving the European Union after the general election on 7 May. It’s currently estimating a 17% chance of severance.
With UKIP polling high, freedom of trade and movement throughout EU member states is near the top of the political agenda. With logistics a globalised game today Rugby-based international haulier Exact Logistics is warning of potential hikes in the price of transporting goods throughout Europe should a ‘Brexit’ become reality.
Exact MD Adam Shuter said: “One of the big myths about leaving the EU is that we could still continue to trade as if nothing had changed.
“This is incorrect as the UK would have to record all its imports and exports to the EU through a different method than that of today. That different method will be back to some form of customs clearance probably along the lines used by countries such as Norway and Switzerland.
“The impact of this change will be to make the transport system to and from the EU more inefficient and cause transport prices to rise,” he added.
Shuter said that a scenario whereby exports and imports are recorded would mean more paperwork, with customers expecting that transport firms of all modes – including road – covering these overheads.
“Flexibility will be impacted as customs clearance costs are broadly the same for a single pallet as a complete full load,” Shuter warned. “The result will be transport prices will become driven by non-transport economics, and order quantities will need to rise to minimise the impact resulting in higher inventory and wastage costs. Again these will be passed on to the customer.”