Since the beginning of the New Year, many UK companies have suffered delays in importing or exporting of goods through the EU border. This is in part due to post-Brexit paperwork requirements involving additional forms to complete, being detailed and a heavily manual process.
A recent survey for the Chartered Institute of Procurement and Supply found that more than half of the these additional paperwork requirements are causing disruption to the arrival of goods and in some instances food wastage, of an estimated 142,000 tonnes, simply due to the knock on effects of goods taking too long to cross the border.
Delays to worsen before they get better
For the logistics service providers, it has been reported that there are longer wait times at the Port of Dover. The delays are estimated to be around 5-10%; while this number may not sound significant, even the smallest delays have a significant interruption to the flow of goods movement, which the haulage industry is reliant upon to have these efficiencies. In addition to creating improbability of achieving tight delivery deadlines, businesses’ operational workloads have doubled. Changes to expected schedule and changes to staff remuneration and management means a lot more admin for most.
At a crossroads
In addition to the logistical barriers faced by haulage companies, new legislation also sees haulage companies being asked for written guarantees to cover tens of thousands of pounds to cover VAT or potential tariffs on arrival in Britain. This requires businesses to have additional cash in advance. One Manchester freight forwarding business owner of 24 years, reported how his business nearly came to a standstill last month due to these new rules. He says, “a truck with a £200,000 cargo would need cash or a T1 financial guarantee document for £40,000 in VAT alone….” That amount of spare cash is rare for most businesses, let alone pandemic-ally hit ones!
Saving you time and releasing cashflow
GRENKE will provide you with the ability to release funds from your invoices within 24 hours of submission, enabling your business to stump up the cash for any additional tariffs or costs set to hit your business.
Find out more about how our invoice finance solutions are assisting haulage companies with much need cash flow.