The logistics sector has been facing a great many additional challenges recently. Quite apart from the additional annual pressure of Christmas, adverse weather conditions, storms and floods contributed to the challenges drivers faced this winter, 2015 was dominated by events at the Channel Tunnel, which had a significant impact on the freight forwarders that use the port of Calais for their European overland haulage operations.
With the situation looking likely to continue into 2016, Robert Keen, the Director General of BIFA, the Trade Association representing UK freight forwarders, said, “BIFA has repeatedly called for government action to address the problems being caused by the would-be illegal immigrants attempting to stowaway on trucks.
“We will continue to press the authorities in France and the UK to step up their protection of the routes across the Channel and fulfil their obligations to let trade move unhindered on this strategic freight route”.
In 2015, BIFA said that it felt that there was some evidence that the UK Government is listening to the advice it is getting from the UK’s logistics sector and welcomed the freeze in fuel duty and planned investment in the UK’s road infrastructure, as being positive signs.
Weather, stowaways and accelerated periods of demand are not the only challenges facing the industry, BIFA predicts that 2016 will see its members continuing to face numerous challenges, with some the result of legislative changes and government policy, rather than economic issues.
Robert Keen said: “From a legislative perspective, two major impacts on the freight forwarding landscape in 2016 will result from the implementation of the Union Customs Code and the amendment to SOLAS requiring the verification of gross mass of containers prior to loading”.
The Union Customs Code will come into Europe-wide force on May 1st replacing the Community Customs Code, causing a significant impact on businesses involved in global trade in goods.
From May 1st a financial guarantee will be required from any UK company operating a customs-authorised relief or suspension regime, such as customs, warehousing or inward processing, of an amount equivalent to cover the amount of duty that may be due, causing additional costs.
Guarantee waivers will be introduced, but only for those businesses that fulfil the criteria for Authorised Economic Operator (AEO). This is a supply chain security accreditation, approved by Customs for companies that demonstrate that their internal processes fully support customs compliance. It can take six months or more to obtain AEO authorisation, so this should be considered as soon as possible.
The basis of customs valuation will also change. Customs valuation will now have to be based on the final sale before import, possibly increasing customs duty costs significantly. Customs duty currently applies to royalty payments only where they relate to imported goods, and are payable as a condition of sale of those goods. These restrictions will be removed, so that many more royalty payments will be subject to customs duty.
Although developments in automotive technology, such as GPS and fleet management systems are helping to improve road safety and driver awareness, Robert Keen sees driver education and training as another important consideration for the industry in the future.
Improved qualifications and incident reduction will not only result in less down time and potential loss of reputation but should result in lower insurance premiums too. The association provides a number of distance learning courses delivered online, for members, while there are a number of recognised specialist driver-training courses for all levels from apprentice to Fleet Driver, CPC, LGV, HGV or PCV.
The UK logistics industry is continuing to drive the country’s economic growth forward and rising to the complex challenges of today’s legislation and the demands of increasingly sophisticated and producers, manufacturers and consumers.