Forget “teething problems”, Brexit is still hitting UK exports, say transport giants

Britain’s haulage industry today warned the crisis in Britain’s trade since the Brexit agreement had extended far beyond the initial January disruption.

The Government has described as “teething problems” the early weeks of disruption which official trade data today showed to have collapsed UK exports to the EU by 41%.

Although the Office for National Statistics said the collapse could rectify itself in the following weeks as traders got used to the new conditions, trucking companies dispute that.

Their trade association, the Road Haulage Association, said traffic flows were now running at around 90% of pre-Brexit levels, as many European lorries were delivering their loads in the UK but returning to the Continent empty.

Rod McKenzie, managing director of policy at the RHA, said: “You always get around 20% of lorries returning empty, but that has doubled.

“Exports to the EU are simply not there and that will impact on the trade figures going forward.”

He explained: “Many EU hauliers are put off by the red tape [of exporting to the EU]. They would rather run empty than go through the faff of filling out the forms.”

Under the trade terms that kicked in on January 1, Britain did not impose restrictions and tariffs on imports but the EU did. That is why trade is flowing easier into the UK than out.

The UK had been due to impose restrictions in April on food and plants, which had been creating growing panic among retailers and logistics companies worried about supplies into supermarkets.

Yesterday, Michael Gove acknowledged Britain was not ready to cope and delayed the plan by six months, citing Covid disruption.

The move was welcomed with relief by UK industry, although some griped that the Cabinet Office minister had blamed coronavirus when the main problem was clearly Brexit.

Companies and consultancies advising them on the red tape “nightmare” of Brexit say there is a drastic shortage of trade officials to advise firms on filling out the necessary forms and understanding the complex rules.

Jobs websites are full of vacancies for export officials to work in the private sector and help companies, particularly SMEs who do not have the expertise in-house.