The Cost of Brexit on Fine Wine shipping

Despite the start of the Covid-19 pandemic, the transportation of wine to and from mainland Europe and the UK was pretty much a straightforward process in 2020. It required a minimum level of regulatory checks and procedures; haulage firms benefited from the EMCS system, an EU customs database that simplified the shipping process for them.

However, come 1st January 2021 and the changes to the UK/EU trade regulations, this straightforward process has been turned on its head. Philip Cox, owner of Romanian winery Cramele Recas, describes the new regulations as “nightmarish” and “potentially unworkable” for small wineries and UK businesses.

“It is fair to say that the new logistics framework has been a challenge for the industry. Even before Brexit, transporting wine was admin heavy. We required roughly 200 pages of documents to move an average shipment between the UK and EU,” explains Ashley Hopkins, Liv-ex director of operations. Adding “Since 1st January 2021 that admin has multiplied. The original 200 pages are still required, but now a similar sized export will require additional documents such as import declarations etc, resulting in around 800 pages.” 

“It’s not just the paperwork that’s the problem. In order to produce these documents you need certain wine expertise, and you also need to include additional parties such as freight forwarders, all of which adds time and costs to the supply chain.” adds Hopkins.

European wine producers, importers and exporters and major transport firms are all attempting to get their head around this new process. The transportation of goods to and from the UK has become much more time consuming, expensive and difficult. A good example of this is from 1st  January 2021, producers have been forced to ship goods in fumigated and treated stamped wooden pallets, which before 1st January 2021 wasn’t a legal requirement. 

In addition, logistics firms must now use ‘Economic Operators Registration and Identification (EORI) Numbers’. EORI numbers are issued by customs to identify traders throughout the EU and are now an essential legal requirement for UK import and exports. Also, under new VAT rules, the tax is now paid in full at the port of entry to the UK before the goods are released. This is a potential issue for smaller businesses.

“The new post-Brexit trading framework has impacted iDealwine in areas that they didn’t see coming. The additional paperwork was expected, but negotiating new rates and new shipping partners were not,” says Alix Rodarie, head of international development at iDealwine.

“New laws and even seeking advice from legal experts was expected, but legal experts unable to clarify or interpret a number of issues relating to importing wine to the UK was not. Customs declarations and duties payable were expected, but the complexity and number of charges for delivering were not.” Rodarie explains that the firm has been forced to build new logistical and legal relationships again from scratch, and then communicate these changes to their existing clients.

“As I’ve said before, it is now easier for me to sell to Japan than the UK,” adds Philip Cox. “Apart from the expense and time wasting inherent to carrying out a full customs declaration, I now have to include an importer’s label on every bottle, detailing their address, etc. I exported 4 million bottles to the UK in 2019 across 12 different brands. So I would have to produce 12 different versions of the label for each wine. Unfortunately, I’ve ceased exporting to my smaller customers. The new administration costs mean that shipping small volumes is not worth my while. The real victim has been the British consumer.”

With supply chain overheads increasing, producers and importers alike must now weigh up how much of this strain can be willingly shared between the key parties, or if UK consumers should be forced to shoulder the burden of the rising prices.

Some experts are optimistic that the end consumer will not suffer unduly. But equally, there is an opinion across the board that smaller brands may now find exporting prohibitively expensive, leading to fewer niche labels on our shelves.

“Our shipping charges have been altered. We used to be charged per case, which meant that we could ship tiny parcels from some growers. We are now charged per pallet and have a sliding economy of scale – this puts our smallest suppliers at a real disadvantage,” says Siobhán Astbury, buying director at Haynes Hanson & Clark.

“There are certainly some wines that have had to go up by a few pounds per case, but for the moment nothing extreme. We’re getting a slightly better exchange rate now than we were at the end of last year, which also helps cancel things out. But it’s still very early days.”

As with Covid-19, uncertainty surrounds the transition into new trading relationships. At the moment, UK customs are overlooking certain checks on goods to ease companies through the transition period. However, when this gentle approach finishes, its forecast that companies should expect long and costly delays at UK customs and excise. 

Both European and UK businesses are also arguing against the introduction of wine import certificates. This new piece of legislation was written into the Brexit deal to replace the VI-1 forms, which the EU currently use to regulate the import of non-European wines.

“As an industry we are used to VI-1 forms for wines originating outside of Europe and this will remain business as usual (albeit a UK version). One of the sections on the new import certificate form requires a customs stamp, which is likely to add an additional 200 pages and 200 stamps – it’s all getting a bit daft,” says Ashley Hopkins, Liv-ex director of operations. In late March, the government delayed the introduction of the wine import certificates until 1st January 2022. Nevertheless, WSTA chief executive Miles Beale, who has been heavily involved in lobbying the government to remove the regulation from UK law has stated that the threat of an eventual implementation of the forms is still “very real.” It remains to be seen whether they will listen to the argument against this extra step or not.

EU Goods Sub Committee report reveals ‘substantial barriers’ since Brexit for UK trade with Europe

A report by the House of Lords’ EU Goods Sub-Committee has warned small firms are “feeling the squeeze” since the Brexit deal with Brussels came into force in January and there remains “substantial barriers” for UK trade with Europe and small businesses bearing the brunt post Brexit.

The committee is calling on ministers to establish a trusted trader scheme to tackle the amount of paperwork that businesses have to complete, whilst also helping with the increased cost of transporting goods and giving firms time to understand the VAT changes when exporting to the EU.

In the Beyond Brexit: Trade in Goods report, it said there “remains substantial barriers to trade with the EU” following the implementation of the fresh trading terms.

It also warned that, without appropriate action, the physical checks currently in situ on plant and animal produce could become a “permanent barrier to trade”, with meat and live shellfish produce worst hit by the new inspection regime.

The committee’s chairwoman Baroness Verma, said:

“The Brexit trade deal struck with the EU may have prevented the nightmare of a ‘no deal’ exit for the UK, but a lot of unfinished business remains between the two sides. Businesses, particularly SMEs (small and medium-sized enterprises), are feeling the squeeze of the non-tariff barriers resulting from the end of the transition period.

The government must take an ambitious approach to trade ties with the EU. Swift action and further funding is needed to minimise future disruption.

Ongoing dialogue will be crucial to achieving smoother trade. The TCA (Trade and Cooperation Agreement) should be treated as the start, not the end of the UK’s new relationship with the EU.”

The report stated a series of recommendations for clarifying the requirements on exporters.

It stated that “On customs, we recommend a trusted trader scheme to enable more businesses – especially smaller businesses – to benefit from simplified customs procedures,”

The “complicated and varied VAT rules in different EU jurisdictions” were described as “among the most problematic non-tariff barriers to trade”, with the committee asking for “advice and support to increase understanding among traders of new VAT implications”. This is following the government’s decision to delay the release of its own programme.

On rules of origin stipulations, the committee said: “Only goods originating – or mostly originating – in the UK or EU will qualify for zero tariffs. The requirements will hit smaller businesses hardest but clarifications and mitigations, particularly on the re-export of non-processed goods, are urgently needed for all.”

Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), said:

“At a moment when small firms are up against it like never before, those that trade internationally – often our most innovative and profitable businesses – are being hit with reams and reams of new paperwork. They simply don’t have the time or money to manage it.

Unless we ease the admin burden being placed on our small importers and exporters it’s going to weigh heavy on our efforts to get the economy firing on all cylinders again.”

Border controls that affect imports & exports post Brexit

Since formally leaving the EU on 31 December 2020, the UK and the EU have been operating under a new trade agreement. In this agreement, goods traded in between the UK and the EU shall not be subject to any tariffs or quotas on all goods that comply with the appropriate rules of origin. However, Customs formalities will be required by both parties in customs areas, and VAT and certain other duties shall apply upon import.


Let’s look at the different stages of import and export processes and how they are being affected, with a focus on Spanish exporters.

Exporting from Spain

Spanish exporters benefit from the fact that intracommunity operations are very simple with regards to VAT. Previously duty registered in the ROI Register by Spanish exporters, needed to have an EU VAT Number and to be registered in the VIES (VAT Information Exchange Service). If both importers and exporters have an EU VAT Number, exporters will issue a VAT Free invoice to the buyer. This rule changes if one of the parties does not have the EU Vat Number.

In contrast, extra community operations are subject to a number of additional formalities, such as obtaining the EORI Number and issuing a number of documents (depending on the commodity to be exported). From the Spanish perspective, and although export invoices are VAT exempted, the main issue is that the goods will have to be cleared at customs before entering the UK and therefore face customs formalities.

Brexit changes in customs policy

The main impact of Brexit for the UK with regards to imports and exports is that it is now regarded as a third party, thus triggering the need to process imports through customs. EU Regulation 952/2013 of the European Parliament is no longer applicable in the UK.

In order to try to minimise the impact on the UK’s economy, the UK Government decided to implement border controls in January and again in April and June 2021. Hence, from 1 January 2021, standard goods arriving in the UK require a EIDR (Entry in Declarant’s Record) as part of the simplified customs declaration process is made. Importers are allowed a six month period to carry out customs declarations, and checks are only carried out on controlled goods such as toxic chemicals and excise goods like alcohol or tobacco, high-risk live animals, and plants.

The initial plan was to implement an intermediate step on 1 April and proceed to full implementation on 1 July, when full safety and security declarations would have been compulsory. However, pursuant to a written statement made on 11 March, the UK Government has decided to postpone both the planned intermediate step on 1 April, and the full implementation scheduled for 1 July. The next significant date in the calendar is now 1 October 2021, from when additional requirements will be necessary, especially for those trading goods subject to sanitary controls, such as products of animal origin, fishery products and live bivalve molluscs, high-risk food and feed not of animal origin, and plants and plant products. Export Health Certificate requirements for products of animal origin and certain animal by-products will come into force at the same time. The UK Government has taken the view that, although most businesses – and the UK’s workforce and infrastructure – would have been ready for the so-called Stage 2 on 1 April, some others needed more time to prepare. 1 January 2022 will bring additional requirements, with a view to setting March 2022 as the date when checks at Border Control Posts will take place on live animals and low risk plants and plant products.

How Brexit is affecting Spanish exporters?

The UK has traditionally been a stronger market for Spanish exporters than Spain has been for UK exporters. Between 2015 and 2019 an average of over 19 billion euros of exports from Spain to the UK took place, in comparison to 11.5 billion euros of UK goods imported into Spain.

All flow of goods between Spain and the UK  from January 2021 ceased to be considered intracommunity transactions and became subject to customs formalities (except for exports of goods to Northern Ireland, which will continue to be declared in the Intrastat system).

Although UK importers are most likely to be affected by the customs regulations, Spanish exporters are also facing related challenges due to Brexit. Customs invoices now must be issued, and goods have to be properly identified with their tariff code to avoid delays. Interestingly to note, the CE marking is no longer mandatory for products sold to UK customers.

Since EU legislation requires that all goods brought out of the EU customs territory be risk assessed and subjected to customs controls before departure, an exit summary declaration (EXS) also needs to be submitted.

How is Brexit affecting UK importers?

Post Brexit, there has been no changes to the general substantive safety requirements required for products to be sold in the UK, with regards to the General Product Safety Regulations 2005 (GPSR). Neither has there been any change to sector-specific product regulations. The UK Government has expressed a desire to remain closely aligned with EU product safety standards in order to facilitate trade, but the future position remains uncertain. Northern Ireland remains subject to a slightly different regulatory regime and further changes may happen in the future.

Despite product safety requirements remaining the same, there have been two key changes for importing products to the UK:

  • the UK is now a separate market to the EU and it will have an impact on who is considered responsible for the safety of products placed into the UK market.
  • the UK is no longer apart of the EU CE-marking regime, or the Safety Gate/RAPEX regime for sharing defective product information and facilitating recalls.

Product safety responsibility

Schedule 9 of the Product Safety and Metrology Regulations 2019 came into force at the end of 2020 and made several amendments to the GPSR. One of the main effects of these amendments is that the ‘producer’ (to whom the primary product safety obligations attach) may change.

Essentially, the manufacturer of a product will retain the ultimate responsibility for the conformity of the product to the relevant product safety regime, provided that the manufacturer or its representative is established in the UK market. If the manufacturer (or representative) is not established in the UK market, then the importer of the product to the UK will be considered the “producer” of the product, and will assume the responsibility.

Producers must comply with the GPSR and any other relevant product-specific regime and take reasonable steps to ensure that the product is safe to use and minimise risks associated with the product, such as providing labelling and warnings where appropriate and ensuring effective traceability and reporting.

The practical impact on UK importers is that in the absence of the product manufacturer being established in the UK market, the importer will now be considered a producer, and will assume liability for the safety of the product. This exposes many previously unaffected importers to potential defective product claims and places a greater regulatory burden on importers to ensure product safety compliance.

Labelling and reporting

The UK (with the exception of Northern Ireland) will no longer be part of the EU CE marking regime for indicating conformity with product safety regimes. From 1 January 2021 the UK requires products being placed on the UK market to bear the UKCA (UK Conformity Assessed) mark.

Currently, the technical requirements and the conformity assessment processes and standards used to demonstrate conformity for UKCA purposes remain largely the same as those supporting the EU regime for CE marking. The UK Government may diverge from this position in the future, but currently any product bearing a CE mark should be able to bear a UKCA mark.

In most cases, a transitional period applies so that the UKCA mark will not need to be applied to any products marketed in the UK before 1 January 2022, and products labelled with the CE mark will be considered to have conformed with the updated UK regime. But, in some cases the UKCA mark is already required to be applied to goods placed on the UK market (since 1 January 2021). This requirement does not apply to existing fully manufactured stock, but from 1 January 2023 the UKCA marking must be permanently attached to the product, as opposed to being printed on packaging or applied in any other temporary manner.

Additionally, as of 1 January 2021, the UK is no longer part of the EU RAPEX product safety regime for identifying and sharing product information on defective products and coordinating product recalls. The UK Government intends to set up a similar regime, but until it does, importers do not need to have regard to RAPEX alerts relating to products for sale on the UK market. It may however be sensible to pay attention still if a product is subject to a product recall in the EU, in order to protect importers from potential product liability claims as discussed above.

If you need advice about Brexit and import/export trade legislation, fill in your details below and we’ll be in touch.

Brexit delays at UK border ‘getting worse’

CIPS survey finds nearly two-thirds of supply chain managers reporting delays of up to three days, longer than in January.

Delays at the UK-EU border are getting worse, new research indicates, as Brexit paperwork continues to snarl up supply chains.

A survey of 350 UK supply chain managers by the Chartered Institute of Procurement & Supply (CIPS) found over half (58 per cent) saying that delays have become longer since the beginning of January 2021, with 30 per cent reporting that delays are significantly longer than they were when the new border rules first came into effect.  

As many as 63 per cent of those surveyed have experienced delays of at least two to three days in getting goods into the UK, up from 38 per cent in a similar survey in January. The situation is only slightly better for exports, with 44 per cent experiencing delays of at least two to three days getting goods into the EU.

By far the main reason for the holdups is the time it takes for customs to work through the new paperwork, with nearly half of businesses (47 per cent) citing this as the chief cause. Other customs issues such as a lack of capacity among customs staff and drivers being turned away for having the wrong paperwork were also cited by respondents.

Only nine per cent of people said new Covid-19 protocols were causing holdups at the border.

The delays come despite the fact many new import certifications are still yet to come into force. The extra checks, which will impact a wide range of goods, are due to be phased in from April.

Dr John Glen, CIPS economist and visiting fellow at the Cranfield School of Management, said: “We are well into the second month of the new arrangements and the hope that delays at the border would reduce as freight volumes returned to normal and customs systems became used to the new processes has not come to pass.

“What is even more concerning is that the delays are continuing to get longer, putting more and more pressure on the UK’s supply chains and affecting the timely delivery of much-needed goods. 

“The paperwork required at the border is not going to change any time soon, so we should brace ourselves for these delays to continue for at least the next few months. New requirements for import certifications are also rapidly approaching and these will only add to the paperwork required, causing further delays for businesses.

“The knock-on impact of these delays will trickle far down the supply chain and ultimately result in stock shortages and inflated prices for consumers”.

5 things the food sector needs to know about Brexit

Although it’s happened Brexit is still very much an ongoing headache for the perishables and food industry. The real reverberations from the UK’s exit from Europe are only just starting to be realised.

It’s been a long and fraught journey to Brexit, with most of the population hoping that they would never have to hear another Brexit debate or argument after the 31st December. However, those hopes are dashed because although the laborious and painstaking EU negotiations are more or less concluded, the real work, dealing with the effects of leaving Europe, is only just starting.

The food sector can’t just ‘action’ Brexit, it’s a delicate balance to ensure that supply chains remain unaffected and relationships with European suppliers are kept on good terms. For speciality products such as regional cheese and niche products, dealings with Europe need to be more than amicable, they need to be highly functioning and as strong as the stinkiest cheese.

Having put our Perishable Movements Limited thinking caps on, we’ve come up with 5 key points that the food and drink sector should remember when dealing with Brexit issues.

1. Getting goods into the UK from Europe
The dawning of Brexit meant that the old rule book for importing goods was thrown out of the window. Post December 31st businesses must have an EORI number starting with a GB to import goods into England, Wales and Scotland. If you’re importing into Northern Ireland, make sure you have an EORI number that begins with XI.

It’s also time to fill out those customs declarations. To find out the rate of duty your business will need to pay and whether you’ll need an import licence you will need to check the commodity code. Next on your import checklist will be to ensure you’re compliant with the marking, labelling and marketing standards.

You can follow the official UK government’s guidelines for importing goods into the UK from Europe here.

How to bring goods into the UK from any country, including how much tax and duty you’ll need to pay and whether you need to get a licence or certificate.

2. Getting goods out of the UK to Europe
The new trade deal set out no quotas on trade between the UK and the EU, if goods meet the relevant rules of origin . Check this link and if relevant, you’ll need an EORI number prefixed with either GB or XI plus a commodity code.

Be aware that there is an added admin burden on companies at the moment and this is causing delays in exports. This is because products deriving from animals such as meat, fish and dairy must have vet-approved export health certificates. Manufactured foods that contain animal products are currently exempt, however this will change in April. Unfortunately, there is still a huge amount of uncertainty about what this will mean for the perishable goods and food business.

Click here for the government’s official guide to exporting from the UK.

3. Moving goods into Northern Ireland

One of the key issues thrashed out during the Brexit trade deal was that there would be no hard border between Ireland and Northern Ireland. The agreed trade deal sets out a regulatory border between Britain and Northern Ireland, because Northern Ireland continues to follow some EU rules.

Again added supply chain delays can occur at this point because food products are being checked when moving from the mainland UK to Northern Ireland. Following staff safety concerns and tensions with the new rules, these protocols were suspended on 2nd February. Supermarkets have been given a three-month period of grace which leaves questions hanging over the future of the protocol. As soon as we know more, we’ll update our clients.

For more information about getting goods into Northern Ireland click here.

4. New rules of origin


Some more red tape reveals itself in regard to revised rules of origin. If your business is exporting or importing food or drink to Europe, you’ll need to prove to HMRC that you can claim preference for goods. you are importing or give the person receiving the goods evidence of the origin so they can claim preference.

There’s lots of confusion about this specific part of Brexit trade agreement. You’ve got to make sure your business is following the rules correctly and have the correct proofs in place. Although a free trade agreement is in place with the EU, this doesn’t mean that goods coming into the UK have no import duties or tariffs.

If you need help, feel free to reach out to the PML team. We’re happy to share our experience and knowledge of Brexit compliance:

5. Don’t forget your IDs!

For the team at PML, this last point is our bread and butter. All importers, hauliers and supply staff moving between the EU and the UK must ensure their passport is valid for at least six months. It’s also important to ensure that any employees travelling to Europe have new Global Health Insurance Card which replaces the European Health Insurance Cards (the EHIC cards will be valid until their expiry date). Double check whether your employees need visas or work permits here.

Global Health Insurance Card

Northern Ireland faces food shortages in ‘major crisis’

Northern Ireland’s hospitals and schools risk running out of food when post-Brexit Irish Sea trade arrangements are fully implemented, claims minister.

A grace period that limits the level of red tape required to move retail food products from Great Britain to Northern Ireland runs out at the end of March.

Here’s Perishable Movements Limited Sales Director Nick Finbow with some top tips for importers and exporters to Northern Ireland to ensure they are red-tape compliant once the exemption expires.

If your business needs more guidance get in touch with our team

quotations@pml-ltd.com

Once that exemption expires supermarkets will have to comply with more rigorous animal health certification processes under the terms of Brexit’s Northern Ireland Protocol.

With depleted supermarket shelves already in evidence in Northern Ireland with the lighter-touch trade controls, Agriculture Minister Edwin Poots warned of a “major crisis” once the grace period ends.

“It was made very clear to us by the suppliers to both hospitals and schools that if the current arrangement for supermarkets isn’t extended in a few months’ time that they will not be able to supply our hospitals and schools with food,” he told BBC Radio Ulster’s Nolan Show.

“That is a major crisis and I have raised this with (senior Cabinet minister) Michael Gove.

“Seriously, are we going to have a situation where our hospitals and schools are not able to feed the children at school, they’re not able to feed their patients?

“That is an outrageous situation that we in Northern Ireland have been put in as a result of the protocol negotiated between the UK Government and the European Union.”

Under the terms of the Northern Ireland Protocol, the region has remained in the single market for goods. That requires strict health checks on animal-based food products being shipped from Great Britain.

Some products are prohibited from entering Northern Ireland at all under single market rules.

Sausages and other chilled meats, which are on that banned list, have been granted a six-month grace period to enable their import from GB to continue until June using temporary Export Health Certificates.

Northern Ireland also applies EU customs rules at its ports, requiring customs declarations on goods moving from GB.

Baffling Brexit rules threaten export chaos, Gove is warned

Business groups tell ministers to sort out bureaucratic mess caused by EU trade deal.

Perishable Movements Limited senior management team remain ready and able to provide advice to government ministers as needed and to importers struggling to navigate the red tape of the post-Brexit trade deal.

Empty shelves at a Marks & Spencer’s store in Belfast. The retailer has warned that red tape will increase costs.
Empty shelves at a Marks & Spencer’s store in Belfast. The retailer has warned that red tape will increase costs.

Ministers must restart trade negotiations with Brussels immediately to sort out the “baffling” array of post-Brexit rules and regulations that now threaten much of the UK’s export trade to the EU, leading business groups have said.

Amid mounting anger among UK firms at cross-border friction they were told would not exist, British manufacturing and trade organisations met Cabinet Office minister Michael Gove in an emergency session on Thursday to discuss problems resulting from the deal struck by Boris Johnson with the EU before Christmas.

The prime minister had hailed what he claimed was a “zero-tariff” and “zero-quotas” deal that would allow free and simple access to the single market. Less than a month on, however, Britain’s EU departure appears to be anything but pain-free.Advertisement

One leading figure involved in the talks with Gove described the new rule book as a “complete shitshow”. Another said Gove seemed “very concerned” at hearing reports of problems, after a week in which Marks & Spencer was among leading companies to warn that more bureaucracy would increase costs. The source added: “He [Gove] seemed to realise the full gravity of the situation that is unfolding and about to get worse.”

Gove admitted on Friday that there would be “significant additional disruption” at UK borders as a result of Brexit customs changes in the coming weeks.

In the first week after the UK finally left both the single market and customs union, the parcels firm DPD suspended some of its services, bookseller Waterstones halted sales to customers in the EU and UK fishermen warned they would not be able to sell their fresh produce into EU markets because of delays at borders.

There were also problems with consignments between Great Britain and Northern Ireland as new border checks caught many businesses unawares. Luxury food store Fortnum & Mason also told customers on its website: “We are temporarily unable to deliver to Northern Ireland or countries in the European Union”, while Debenhams has temporarily shut its online business in Ireland.

Some of the problems are being blamed on a rushed deal, and others on the sheer complexity of arrangements including “rules of origin”, some of which have not been finally determined. Only goods made up largely of parts that originate in the UK qualify as tariff-free.

Stephen Kelly, chief executive of the Northern Ireland business organisation Manufacturing NI, said: “The reason why the UK and EU originally agreed that there would be an implementation period of 11 months was so that people could get their heads around what was needed and assure their businesses were compliant. But we didn’t have that. We had seven days before everyone had to be ready, and one of those was Christmas Day.

“There is a big problem with GB businesses being unaware of their new responsibilities. We have the triple whammy here of Covid, Christmas and new customs rules arriving all at once without any time to adjust.”

Johnson assured Northern Ireland business owners in November 2019 that they would have “unfettered access” to the rest of the UK. “There will be no forms, no checks, no barriers of any kind,” he said. If anyone told them they needed to fill in forms, “tell them to ring up the PM and I will direct them to throw that form in the bin.”

The government was also facing pressure over its Brexit deal from the SNP. Ian Blackford, the party’s leader in Westminster, called on the UK government to “pay compensation to Scotland”, claiming a “multibillion compensation package” was needed to mitigate the costs of Brexit in Scotland.

Stephen Phipson, chief executive of the manufacturers’ organisation Make UK, said much still needed to be negotiated between the UK and EU. “Industry welcomed the trade agreement that avoided the catastrophe of no-deal, as tariffs and quotas would have been a disaster for exporters. However, this is only a starting point, as there are still substantial issues that need ironing out, with many months, if not years, of tough negotiations ahead.

“There are customs experts with 30 years’ experience who are baffled by what the new regulations mean, let alone small- and medium-sized businesses who have never had to deal with the kind of paperwork that is now required. The great fear is that for many it will prove too much and they will simply choose not to export to the EU.”

He also raised fears about the UK car industry, which could be adversely affected by tariffs if EU rules relating to the origins of components used in car manufacture cannot be met. “Having built up seamless and complex supply chains over decades, the automotive sector in the UK is facing a jolt to its systems that places its very future under threat,” he added. “While there is no suggestion multinationals will close plants overnight, we have already seen decisions to build new models placed elsewhere. As those models that have been built in the UK for many years come to the end of their life, we are likely to see a slow puncture for the sector of investment drifting away.”

Dominic Goudie head of international trade at the Food and Drink Federation said talks needed to re-start between the UK Brussels.

“Where problems emerge there will need to be further conversations,” he said. “The trade deal provides the means to do that. It is a question of whether is the will to do so” (after so many months of talks.”

Sam Lowe, a senior research fellow at the Centre for European Reform, said there were problems that could grow over coming weeks and months.

“The new import/export formalities are proving problematic for many companies. The lack of obvious queues at the border disguises the fact that many trucks are stuck in depots, unable to head to the ports due to their clients failing to provide the necessary documentation and information.”

Source: The Guardian

Kent lorry chaos: Seafood rots by the roadside as gridlock predicted to last days

The gridlock in Kent will “take days to clear”, officials warned last night amid fears that fresh produce caught up in the delays will perish.

Fish was among the products causing the greatest concern to exporters, who warned it would have to be discarded. “The window wherein companies would be able to salvage anything from the last couple of days is now closed for premium seafood, which has been perishing by the roadside since Sunday night,” Donna Fordyce, chief executive of Seafood Scotland, said. “Millions of pounds have been lost, much of it by small companies that were depending on this trade for survival.”

Fears were also growing last night that supermarket shelves would be emptied in the coming days, despite an agreement by the French and British to resume freight movements from this morning.

“The real issue we face is what happens in the next day or so,” Andrew Opie, director of food and sustainability at the British Retail Consortium, told MPs on the business, energy and industrial strategy committee.

“If we do not see the empty trucks, which have already delivered to warehouses and stores, getting back over the Channel, they will not be able to pick up the next consignment of fresh fruit, vegetables, salad vegetables.

“What we’ve been told by members is that unless those trucks can start travelling again and go back to Spain and Portugal and other parts of Europe, we will have problems with fresh produce from December 27. What we need is for those trucks to move in the next 24 hours if we are to avoid seeing problems on our shelves.”

Nicola Sturgeon, the Scottish first minister, said that perishable produce such as seafood must be prioritised if hauliers are able to start moving again today. “We still await detail of the agreement, but if freight starts moving tomorrow, as we must hope it will, the plan to prioritise perishable produce such as seafood should be activated immediately,” she said.

Officials in Paris announced last night that an agreement on both sides of the Channel would allow for a limited resumption of travel, including “accompanied freight” from today. Only people with negative coronavirus test results will be permitted to travel.

A Turkish lorry driver has breakfast by the M20 yesterday

A Turkish lorry driver has breakfast by the M20 yesterday

A statement from the French prime minister’s office said lateral flow tests, which provide a result within 20 minutes, would be authorised providing they were able to detect the new strain of coronavirus.

Hundreds of soldiers will be deployed to a former airfield in Manston, Kent, to conduct the tests on up to 6,000 lorry drivers a day from this morning. Drivers who test positive will be told to isolate in hotels.

Businesses were hoping the gridlock in Kent would be cleared by Christmas, but many are already counting the cost of the 48-hour border shutdown. Nimisha Raja, founder of Nim’s Fruit Crisps, in Sittingbourne, said: “We were supposed to have eight tonnes of lemons coming in last week, that’s roughly 40,000 lemons.

“The delivery was organised well in advance of the Christmas shutdown, as we have an order going out mid-January, which requires at least two to three tonnes to fulfil.

An aerial view of Manston airport shows lines of lorries yesterday

An aerial view of Manston airport shows lines of lorries yesterdayWILLIAM EDWARDS/AFP/GETTY IMAGES

“Unfortunately, the order never got to us, initially because of a bank holiday in Spain and then the realisation that the double whammy of Covid-19 and Brexit would make it too time-consuming and too risky.”

DPI, based in Castle Donington in Leicestershire, manufactures and supplies illuminated displays for shops and the events industry. Sandra Wiggins, the company’s boss, said it ships six-metre-long crates of aluminium into the UK from the Netherlands from which it fashions lightboxes.

With its latest shipment delayed it will have to decide whether it should pay transit costs of £6,000 for a delivery of supplies that normally costs £1,800, and with no guarantee they will arrive.

Edward Naylor runs Naylor Industries, manufacturing pipes at facilities in Barnsley and Fife, employing 150 people. The pipes are used for carrying electricity cables into homes and telecommunications and power to motorway gantries and traffic lights.

It sources polyethylene from a company in Nantes in France and was told this week that because of the level of Covid-19 outbreaks in the UK its hauliers would not be leaving France. “Their message to us was we have got the stuff. We want to get it out to you. But we can’t. And we won’t be able to get it to you until things normalise,” Mr Naylor said.

Lorries are parked on the M20, with a contraflow system for cars

Lorries are parked on the M20, with a contraflow system for cars

However, his company had expected Brexit disruption and built up a larger than normal buffer of stocks through to February. “That is £1.5 million of stock sitting around on 20 to 30 trucks, tying up a not inconsiderable sum for a company our size,” he said. “We are in danger of becoming a plastic pipe manufacturer without any plastic. There is a sense of impending doom.”

Others are praying borders farther afield open soon to flights from the UK. “Our biggest problem has been air freight and the live lobsters being flown in from Canada,” Keith Smith of Caterfish, one of the biggest operators at the Birmingham Wholesale Market, said.

“When they heard our latest news [on the pandemic], Canada cancelled the flights. That is a big shame for the local Chinese community around here who like their live lobster.

Drivers feel like caged monkeys

Lorry drivers stuck at a disused airfield because of France’s freight ban complained that they felt like “caged monkeys” and “lab rabbits” (Charlie Parker writes).

Yesterday, as the sun set on Manston airport, Kent, the sound of hundreds of horns filled the air as drivers protested against the “blockade”. More than 1,500 heavy goods vehicles are trapped while the UK thrashes out plans to reopen the French border to trade.

Daniel Kroba, 36, from Poland, had dropped off luxury chocolates when the border shut on Sunday. He parked on a side street but police told him to drive to the airport, 30 minutes away. He was among 873 HGVs to arrive at the site before 6am. A further 650 vehicles were moved there from the M20.

The government was under pressure yesterday to turn the airport into a Covid testing site, but Mr Kroba said: “Why do we need a test? We are not lab rabbits. My family is waiting at home. Two little girls and my wife are sad.

“We’re just stuck in the middle of the fight between [the] UK and France, waiting. We don’t know if we can leave. We feel like rabbits and monkeys. It’s inhuman.”

Another Polish driver said: “The toilet here is broken and the next one is one kilometre walk away. It’s impossible to get home for Christmas.”

At 4pm hundreds of drivers held their hands down on their horns in protest.

The Department for Transport (DfT) told the press not to enter the airfield due to Tier 4 rules inside, although scores of drivers could be seen standing together with limited social distancing being observed.

There are 77 toilets and 66 urinals at Manston, the DfT said, and hot food was available. Several lorries left the airfield during the day. “The lorry drivers are free to leave the airport site at any time,” the DfT added.

Manston shut in 2014. It was an RAF base in the Battle of Britain and acted as a reception centre for Polish airmen.

Source: The Times

Aviation security for cargo from 1 January 2021

These are the UK Government’s official measures in place to ensure cargo can fly to and from the EU without disruption from 1 January 2021.

Perishable Movements Limited clients can rest assured that our pre-chartered freight flights will ensure that a No Deal Brexit does not disrupt our supply chain. It also provides options for prospective customers who are looking to set up alternative measures to cope with long tailbacks on cross-Channel freight services.

Cargo from the EU to the UK

The UK intends to recognise EU cargo security rules to minimise disruption to air cargo networks. Airlines flying from airports in the EU, Switzerland, Norway, Iceland and Liechtenstein will be able to fly cargo to the UK in the same way as they do now.

Cargo from the UK to the EU

The EU intends to recognise the UK cargo security regime allowing cargo to continue to fly into the EU.

Cargo will be able to fly from the UK to the EU, Switzerland, Norway, Iceland and Liechtenstein without a security designation, in the same way as it does now.

Cargo from the rest of the world into the UK

Airlines from the rest of the world must have a special security designation to fly cargo into the EU and the UK as part of the ACC3 programme.

UK only inbound cargo scheme will be set up to make sure security standards are not affected. This will mirror the EU scheme and grant security designations from 1 January 2021 to allow all cargo to continue to ship smoothly while maintaining existing security standards.

Regulations and standards

Existing aviation security regulations and procedures will be incorporated into UK law.

The EU intends to recognise the UK aviation security regime and include the UK in its One Stop Security system so that cargo screened in the UK will not have to undergo additional security checks on arrival in the EU.

Source: Gov.uk

What does 2021 have in store for chartered air freight services?

There is no sign of any slow-down in the world of e-commerce, in fact quite the opposite. With so many consumers forced to adapt their shopping habits in response to the restrictions imposed as a result of Covid-19, it is likely that the changes that have been made will be long lasting.

While the world remains optimistic that the traditional retailers will be able to resume normal trading, the fact is that consumers will have become accustomed to revising their approach to purchasing and will be loathed to turn their back on the speedy digital shopping experience.

Perishable Movements limited, Sales director Nick Finbow.

In response to this, more and more aircraft are being reconfigured to carry cargo, rather than passengers and there has been a spike in the number of aircraft retrofit businesses able to undertake these specialist works. Since the production of the Boeing 747 has stopped in favour of the more fuel efficient, newer 777, so interest in the procurement of 777s to lease or buy has increased and while some of these may already be converted for cargo, we are likely to see more of these passenger aircraft configured to accommodate the exclusive handling of cargo.

The world of e-commerce traditionally focuses on a high proportion of goods being transported out of China into major European hubs. As a result, there is likely to be a predicted growth in the number of chartered air freight services transferring consignments out of these hubs and delivering them to local European markets. This means that once again, the pressure for space will be intensified on these flights.

Given the world’s growing mandate to address the need to slow down climate change, it is also likely that the future will bring new break throughs in fuel efficient engines which represent an improved carbon emissions proposition. For companies who trade on their ‘green’ credentials, this will enable them to potentially reconsider the use of chartered aircraft, which will in turn create further demand for space.

Impact of Brexit

Brexit has effectively provided a massive boost to the chartered air freight industry. Companies which specialise in perishable goods cannot risk being caught up in cross-border delays, delays which can have a devastating impact on time-sensitive produce. UK supermarkets and independents demand quality fresh produce, with a good shelf life. Goods which have been kept in transit when they should have been on the shelves will have a reduced shelf life triggering substantial losses to the producer.

For Perishable Movements Limited, the speed of transit associated with chartered aircraft services, supported by the company’s ability to handle product with an unbroken cold chain thanks to its unique relationship with Heathrow’s only dedicated chilled airside facility, has dictated an even stronger interest in chartered air freight in the wake of Brexit. Such is the demand that Perishable Movements Limited, has seized the initiative to charter its own aircraft to ensure the seamless and timely transfer of fresh produce.

Coronavirus crisis

The impact of the global pandemic continues to be felt in all sectors of industry and the chartered air freight sector is certainly not exempt. As countries begin to prepare for massive vaccination programmes the priority for many airlines is to captialise on the opportunity to carry the vaccines and as a result the race for space on chartered flights continues to heat up.

Competition for space in turn brings with it spiraling prices. Not only are logistics companies having to contend with the traditional seasonal variation in prices due to the influx of electronic products to satisfy the Christmas market, now the charters are becoming even more expensive due to the potential to charge a premium price for the transportation of PPE and vaccines.

Looking ahead

As the biggest independent perishable goods importer, Perishable Movements Limited continues to work hard to stay ahead of the curve. In addition to chartering its own twice-weekly flight from Nairobi to Heathrow, the company is watching the market to identify new opportunities to increase the number of flight rotations operated by Perishable Movements Limited and its partner network.

Having an in-house air charter service division, headed up by someone who has acted on both sides of the fence, working for an airline as well as an independent charter broker means that the company is well placed to access the very best air trade lanes. But as anyone in the logistics business will testify, these will be challenging times for the industry

Source: Fresh Talk Daily