The development of the relations among the European countries and the international tendencies will affect the European freight forwarding business this year. The European logistics network takes into consideration these relations and trends, in order to continue providing its customers with timely freight forwarding services at competitive prices.
In anticipation of Brexit: the conditions for forwarding in the EU remain in force
Following the Brexit referendum help in Great Britain on June 23 2016, the EU country members expect that the conditions for the UK leaving the EU will be negotiated. It is expected that these negotiations will take at least two years, so in the meantime, all freight forwarding services to and from Great Britain will be done in accordance to the current EU conditions. There will be no trade barriers and other limitations which can affect the terms and pricing of the freight forwarding services.
In 2017, the European network for logistics will continue to provide regular forwarding to Great Britain from the other European countries. There will be no changes in the freight forwarding conditions. All transportation from Great Britain to the other EU member countries will still be done in accordance to the European customs union. The only factor which can affect the prices of the freight forwarding services is the rate of the British pound to the Euro.
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Preparing the European network for logistics services for the period following Brexit
IFA is getting ready for the future after Brexit with the application of customs tariffs to the transport to and from the United Kingdom. In the period before the conditions for Brexit are finalised, the member companies of the European network for transportation are conducting studies and discussing the priorities they will have following the exit of Great Britain from the EU. IFA is getting ready to meet all possible conditions for negotiations by applying customs tariffs. Also, the freight forwarders are anticipating the conditions for hiring drivers who are not residents of Great Britain. For freight forwarders Europe, it will be an asset if such drivers are allowed to work in the network of freight forwarders. Currently there is shortage of drivers in Great Britain, so a favourable resolution for the problem with non-resident drivers in Great Britain is expected.
The probability of moving some of the British logistic centres in countries on the continent
Modern production and trade are unconceivable without the forwarding of goods and materials. This is why, it is expected that some of the British logistics centres will move to countries on the continent to make freight forwarding easier. This can be expected to happen as early as this year. For the member companies of the international freight forwarding network, this is an opportunity for better cooperation and synchronization of the transport and deliveries. The moving of these British logistics centres on to the continent will benefit the international freight services in the countries which they choose to move to by opening new offices and by optimising and increasing the volumes of the freight forwarding services for the growing British market.
Increase of the share of sea freight in anticipation of the possible introduction of customs tariffs for entering Great Britain
Given the possibility of the introduction of customs tariffs after Great Britain’s exit from the EU, freight forwarders Europe must be ready to increase the share of the cheapest type of transport – the water transport. This type of transport will be the most suitable one for the freight forwarding services to Great Britain. The Freight transport association will prepare itself for more intensive forwarding of small shipments, complete loads, and contract logistics via sea freight.