Truck and Track Spring 2021

Truck and Track Spring 2021 www.truckandtrack.com 24 BREXIT - DESCARTES confirms that nearly two in five companies think the economy wasn’t ready for the end of the Brexit Transition Period on 1st January 2021. This lack of preparedness by individual businesses has had a severe knock-on effect on the rest of the supply chain: even a company that is totally prepared can have its businesses disrupted if suppliers have failed tomake the required changes. But is this the reality after the initial, expected border glitches? If companies have the right paperwork and processes in place, delays should be minimal. And while traffic volume dropped initially in January, in response to the stockpiling undertaken by many companies, figures are back up. By February, it was reported that UK-EU freight trade was back to 90% of normal levels at Dover. With markets beginning to re-open as lockdowns ease and vaccination programmes take effect, there is a huge pent-up demand for goods in every sector – so are companies ready? Covid-19 and Brexit preparation In March 2020, when companies should have been gearing up for Brexit, the vast majority were wrestling with global disruption to supply chains, unknown customer demand and the need to put many staff on furlough simply to survive. Three quarters (76%) of companies confirm that Covid-19 disrupted their Brexit response. Hardly the best preparation for the biggest upheaval in European trade in 50 years. Given the very different experiences of a post-Brexit trading environment so far, a lack of consensus regarding the future is to be expected. Yet the divergence in opinions is stark: while 62% of those negatively affected by Brexit are less certain about the full ramifications of 13% ** Our response to Brexit has been mutually beneficial to how we’re managing COVID-19 COVID-19 has been highly disruptive to our Brexit response 37% * 39% * COVID-19 has been somewhat disruptive to our Brexit response * 90% companies with 1000+ employees, vs 68% sole traders 86% companies negatively impacted by Brexit 86% companies in the Healthcare sector ** 18% companies in the Electronics, Computer and Telecommunication sector *** 20% companies in the Retail, Wholesale and Textiles sector How has COVID-19 impacted your businesses ability to respond to the challenges presented by Brexit since January 2021? 11% *** COVID-19 has had no impact 32% ** Very positively Somewhat negatively 11% ** Very negatively 6% * 13% * Somewhat positively * Electronics, Computer and Telecommunication sectors were most positive at 35% ** Engineering and Manufacturing sectors worst affected among those surveyed, at 47% 39% Neither negatively nor positively How has the UK leaving the EU on 1st January 2021 impacted the performance of your business?