THE BUSINESS OF INTERNATIONAL TRADE
THE BUSINESS OF INTERNATIONAL TRADE
In the three months from March to May 2021, the uplift in demand for haulage was more than twice what it was for the same period in 2019.
As a leading haulage return loads platform in the, Haulage Exchange can provide unique, month-on-month insights into load transfer demand, from hauliers up and down the country. With the industry thriving thanks to increased demand and continuing to successfully adapt to ongoing changes, Haulage Exchange spoke to those on the front lines of the industry – to explore upcoming challenges and hear their predictions for the future. They surveyed employees from 16 of the UK’s top haulage companies that operate in the UK and Europe, with fascinating results.
Here's what they found:
Only now are we starting to see a true picture of how Brexit will affect cross-border haulage with the EU. Although full border inspections won’t begin until 1 January 2022, companies continue to adapt to new regulations and prepare for the new-look landscape.
Just as many – both in and outside the industry – predicted, most (81%) haulage companies have faced longer waiting times at the border. Allied to this, 69% have found themselves spending more time on paperwork related to border crossings. Unsurprisingly, many companies have explored alternative routes into the EU, but half of the firms surveyed say they’ve experienced longer journey times on these routes.
Some 56% of hauliers say business has been affected by fewer exports going to the EU, while half say their operations have been impacted by fewer imports coming in. Despite this, demand has not only proved robust, but has increased dramatically.
When asked what challenges Brexit was posing for the industry, 6% of companies say they haven’t seen any impact on their business since Brexit came into force on 1 January 2021.
One underreported aspect of Brexit’s effect on hauliers is the impact of the transition itself: on people, companies, and society.
An increase in stress, anxiety and other mental health issues were highlighted by 50% of respondents to the survey. Related to this, 13% say staff are working longer hours, while 6% say employees aren’t taking their full annual leave allowance.
This study also uncovered a reduced focus on environmental targets, with a quarter (25%) of respondents noticing this at their company.
With the haulage industry at the very forefront of Brexit-induced changes, haulage companies have quickly realised the need to adapt the way they work. Representing a potentially seismic shift, this study found that 56% of haulage companies have moved some operations to the EU or would consider it in the future.
Rising haulage costs will be felt by UK businesses in various industries, with 69% of haulage firms in Haulage Exchange’s survey having already increased costs. The remaining 31% say costs will be rising next year or in the near future.
As UK lockdown restrictions ease, many sectors are only just beginning to face staff shortages, but in the haulage industry, demand for drivers has been outstripping supply for some time. According to the data, one in every 8 haulage companies identify skilled driver shortage as a significant risk to the industry in 2021. Research has suggested that as many as 12,000-15,000 have left to find work elsewhere.
The knock-on effect of this driver shortage is that some industries have been unable to find enough hauliers to transport their products. Certain products are also subject to increased checks and admin, creating additional barriers for haulage companies’ transporting such goods.
Almost a third (31%) of respondents to the survey say they would avoid working with food & drinks industry clients due to border and Brexit issues. Other sectors they are reluctant to work with include livestock farming (25%), agricultural farming (25%), gardening supplies (19%) and retail (13%).
This study highlights how small businesses are being affected by Brexit’s haulage impact. Some 63% of haulage companies say they do less business going from the UK to the EU with SME companies (with under 100 employees). Going from the EU to the UK, 56% of hauliers say they do less business with SMEs in that direction.
Contrast that with the figures for multinationals (with more than 1,000+ employees): 38% of hauliers do less business exporting from the UK and 25% less business importing into the UK.
Hauliers were asked if they believe that it’s sustainable to continue operating with the current Brexit changes to border regulations. Almost a third (31%) say they’re adapting their business model to survive.
With full border checks on EU goods entering the UK on the horizon, hauliers were asked how they’re preparing for this next change and what factors they think will have the biggest impact.
According to hauliers themselves then, bureaucracy is the biggest threat to the industry, followed by rising operating costs and COVID-19. Many are also thinking about competition coming from the EU.
Looking ahead to the start of next year, UK hauliers were asked if they foresee further issues when full customs controls on imports come into force.
To read Haulage Exchange’s full article, click here.
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