Transport networks are creaking under the strain of this winter’s ‘perfect storm’ as logistical issues continue to mount ahead of the end of the Brexit transition period.
Haulage costs have risen significantly in recent weeks as Christmas preparations, a second nationwide lockdown, and Brexit stockpiling caused a squeeze on availability.
Meanwhile, ongoing disruption at the port of Felixstowe has led several major shipping lines to redirect away from the UK, restricting certain imports from non-EU destinations.
The situation is set to continue, or even deteriorate, into the new year as businesses step up their preparations.
“We understand transport rates will double for certain European routes by mid-December,” said one UK-based supplier. “It’s got a lot to do with big companies starting to book up contingency freight space for the delays in January.”
The food sector is suffering from especially tight availability, explained Alex Knowles, MD at Knowles Transport, which is “as busy as we’ve ever been”.
“If there are any more massive spikes in order volumes, there could be issues.”
To minimise the risk of incorrect paperwork delaying them further next year, some European hauliers are expected to avoid carrying backloads out of the country once their original load is delivered. “There’s a fear that some hauliers could be able to get into the UK but then get stuck here,” said Jonathan Kittow, director at Simply Supply Chain, a food consultancy firm.
At the port of Felixstowe, many businesses are struggling to import food and drink as a huge increase in traffic led in part by PPE continues to clog up the port. Many ships have redirected to Rotterdam to avoid the delays, forcing UK businesses to pay additional to transport their goods back across.
“Some small businesses are facing added bills in the region of hundreds of thousands of pounds a month because of this,” said Dominic Goudie, head of international trade at the FDF. “Some are now even saying this is materially impacting on their ability to prepare for the end of the transition, and to build up some of the stockpiles that they needed.”
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