What does Brexit mean for logistics?

logistics insights Nov 12, 2019

The Brexit is a hot topic at the moment. Everyone is wondering what will happen next and how the industry will change. Alina from MOTION spoke to Glenn Hayes, who is the Managing Director of the UK and Ireland offices, of Worldwide Logistics Group. The company is a MOTION Member since 2016.

 

MOTION:  How do you think Britain leaving the EU will affect your business (and others in Britain)?

Glenn Hayes: I think we will have a lot more customers seeking solutions in Europe that are British and new customers from European Forwarders looking for UK warehouses and direct solutions. After no one will just stop trading they will just seek a new solution.

 

MOTION: How do you think Britain leaving the EU will affect logistics service providers globally?

Glenn Hayes: Leaving the EU will not long-term, we have always been an island and we have always traded like a seafaring island nation. That will not change in any way shape or form, it may just add a level of complication to Northern Irish and Irish traffic which flows through the UK but we set up our own office for that in Cork, Ireland.

 

MOTION: Where do you see threats for global logistics service providers? (And how can they best prepare / avoid)?  

Glenn Hayes: The main threat will be to foreign sellers that currently work in Europe and in the UK. Many U.S and Chinese sellers in Amazon especially, do not have to worry about borders or customs checks, cargo can come to the UK or to Europe and be moved over without any issues. However, after BREXIT everyone will need to ensure their cargo goes to the final destination, country of sale. This may mean that people will need to store more cargo in different countries. Whereas, at the moment sellers split their volume to the country with the highest sales ratio and then move cargo to smaller demand countries within the EU as and when they have demand.

 

MOTION: Where do you see opportunities for global logistics service providers?

Glenn Hayes: As in all times of change, opportunities and risk follow hand in hand. Logistics service providers must always evolve and adapt to any opportunities that come their way. We may see a change in the market that will help British manufacturing and allow us to do more exports. With a weaker pound sales to other countries might increase and when they do we will be ready.

 

MOTION: How are you setting yourself up for success in the next 18 months?   

Glenn Hayes: We have been using a warehouse in Germany since August 2018, to reduce the risk of being caught unable to move cargo cross border.  We have also opened our office in Ireland to ensure that we have a physical office presence in Europe.

 

MOTION: What is the unique value you bring to the MOTION Logistics Network?

Glenn Hayes: We have offices in the USA, India, China and Vietnam which allows us to trade across many trade lanes quickly and efficiently.

 

MOTION: What is the best part of being part of MOTION Logistics Network for you?

Glenn Hayes: It is great to be part of MOTION as it is a small network and everyone knows each other well. As a new member I was made to feel very welcome.

 

 

 

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