Half hour customs delays after Brexit would 'leave shelves empty and drive firms bankrupt'

A UK Border Agency staff member at the ferry port in Calais, France.
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Nick Charity26 September 2018
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Britain could face a logistics crisis with companies going bankrupt and a shortage of food on the shelves if Brexit caused border delays of just half an hour.

One in 10 British transport firms say they are used to frictionless trade and it is feared small delays at customs would drive them out of business.

A quarter of logistics companies are stockpiling products amid Brexit fears, and warn of a potential crisis as one in 10 would "likely go bankrupt", supply chain managers have said.

If Brexit causes custom delays it could mean an overnight crisis for British imports.

A lorry passes through UK Border Control at the Eurotunnel site in Calais, 2015.
PA Archive/PA Images

Firms would struggle to find suppliers and skills, according to the Chartered Institute of Procurement & Supply (CIPS), in a survey of 1,310 UK and EU-based supply chain managers.

John Glen, economist at CIPS, said: “The UK economy could fall off a cliff on Brexit day if goods are delayed by just minutes at the border. Businesses have become used to operating efficiently with exceptionally lean, friction-less supply chains, where quick customs clearance is a given. Customs delays would not only affect businesses, but would also lead to a shortage of products on shelves and an increase in prices for consumers as well.”

Longer queues at the border due to added paperwork would be such an existential threat to the companies, that up to 30 minutes delay would put 10 per cent out of business - and more if the delays went on for hours.

The research comes at a crucial time for negotiations between the UK and EU about future trading relationships a Theresa May tries to unit the Conservative Party behind an amended deal to take to the European negotiators, and the Labour Party announces that if she can't strike a deal they approve of, they will force her into a general election.

But some logistics managers said they would actually prefer the prospect of a "no-deal" Brexit - but the overwhelming majority say that delays would put their time-sensitive contract under pressure, with hundreds of firms planning to stockpiling goods to prepare for Brexit Day.

Half of all the respondents said they would struggle to re-shore parts of their supply chain in the UK if they had to.

“The Brexit deadline is drawing nearer and while most businesses are trying to prepare, they are limited on what they can do until a final Brexit deal has been agreed," added Mr Glen, who called on the government to prevent an "economic meltdown".

"Stockpiling goods is an option for some businesses, but many do not have the facilities available to store surplus stock, and those working with perishable goods simply won’t be able to."

Britain's fate is edging closely toward a "no-deal" Brexit. With no firm trade agreements in place on March 29, companies would have to fall back on World Trade organisation Rules for duties, which would put even more pressure on importers.

The Prime Minister's "Chequer's Deal" was met with hostility at the Salzburg summit with EU leaders last weekend, particularly on the sticking point of a hard border between Ireland and Northern Ireland.

This afternoon, Labour Leader Jeremy Corbyn made a surprise offer to Theresa May - saying he could stomach her deal if she kept Britain in the customs union and made several changes to turn Chequers into someone "sensible".

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