The impact of the COVID-19 pandemic on the UK’s export market

Perishable Movement Limited’s Business Development Manager Robert Haynes explains how the global COVID-19 pandemic has caused huge disruption to the goods import and export market.


The industry has seen huge uncertainty with prices and cost of transporting goods due to an uncertain global transport system.


Despite the tough market PML has managed Block Space Agreements and Single Carriage Agreements to secure and maintain competitive prices for their customers.


PML continue to work closely with all carriers to ensure customers’ products arrive on time and in perfect condition.

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

PML announces innovative solution to border control delays

PML, the global perishable cargo specialist is partnering with transport and logistics company FreshLinc to operate an HMRC / DEFRA approved Border Control Post (BCP) and ERT (bonded warehouse) facility at Fresh Linc’s Spalding HQ, enabling a speedier movement of product from the ports and extending shelf life by up to 48 hours.

The BCP which has been in development for the last four months, will be effective from 1st January 2021 and represents a £400,000 investment. This includes the creation of a purpose-built 10,000 sq ft warehouse with the ability to store 330 pallets; dedicated inspection areas for customs and DEFRA and the training of four new dedicated staff to run the 24-hour operation.

The decision to set up a BCP away from the ports – Spalding is within easy reach of both Dover and Southampton docks – is in direct response to the ongoing delays and excessive queues which currently impede the onward movement of freight. The imperative to take action is amplified given the specialist and sensitive nature of PML’s cargo – the majority of consignments require temperature-controlled conditions – and the anticipated further disruptions likely to be caused post Brexit.

The long-standing and trusted working relationship between the two companies has enabled a seamless journey from the inception of the idea to create a dedicated BCP at FreshLinc’s 70,000 sq ft site, to completion of all the works required to meet the demanding criteria as defined by HMRC and DEFRA.

“This is a great opportunity for us to work with PML to maintain the continuation of the food supply chain especially against the backdrop of the uncertain times we are now facing as a result of the challenges posed by Brexit and the coronavirus. The BCP is a perfect example of two like-minded businesses coming together to provide an innovative solution to an industry problem.”

Lee Juniper, Operations Director at FreshLinc.

“This venture will enable us to move product much faster from the ports, cut down on wasted journeys and should ultimately deliver a minimum of 24-48 hours additional shelf life on all our customers’ products. Our priority is to guarantee the safe and timely transfer of goods, ensuring that there are no breaks in the cold chain. By creating a remote BCP, we are no longer constrained by the issues at the ports and PML is able to operate and manage its own facility.”

PML Sales Director, Nick Finbow.