Freight firms reject 20pc of cargoes shipped from France to UK
FREIGHT companies are rejecting one in five contracts to take goods from France to the UK as border rules put in place after Brexit added to delays in moving goods across the English Channel
09 February 2021 - 19:00
The rejection rate, showing how many companies pulled out of long-term delivery contracts to move goods, was 158 per cent higher last week than its average during the third quarter, according to data from global logistics platform Transporeon. The reading was marginally lower than the week before.
'Very high' rejection rates also on the return journey to France and Germany reflected 'unprepared shippers, maxed-out bank guarantees for transit documents, and carriers preferring to go back to the continent empty,' Transporeon CEO Stephan Sieber said.
The UK left the European Union's single market on December 31. After that date, truckers were required to fill out customs forms and undergo checks at the border. Many have given up the hassle by charging more to cover the costs of returning with nothing.
Those frictions are driving up the cost of shipping. Haulage companies have warned this stickiness is evidence that higher shipping fees are a permanent consequence of the administrative burdens of Brexit.
While demand to transport loads from France to Britain is slowly recovering after the New Year lull, volumes were still 38 per cent lower than in January last year, according to real-time data from Sixfold, a unit of Transporeon. Many firms are bypassing the UK by taking direct routes to Europe, such as the one launched recently between Dublin and Amsterdam, reports Bloomberg.
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