Germany highlights dramatic drop in confectionery exports to UK due to covid and Brexit
Logistics delays between the UK and EU have continued amid Brexit
Germany’s BDSI federal association of the confectionery sector has warned that exports to the UK have been considerably impacted since the end of the Brexit transition period, and further complicated by the coronavirus pandemic, reports Neill Barston.
As the organisation noted, sector trade between the two nations in the past month has been notably down, with one in three German firms experiencing difficulties reaching British markets amid a flurry of new complex ‘rule of origin’ legislation.
The UK had been considered the country’s second most important market, accounting for around 10% of the sector’s exports, but concerns have been expressed regarding revised trading arrangements struck under the 11th hour deal agreed by UK Prime Minister Boris Johnson at the end of December (photo of trucks waiting to cross the Channel at Calais before Christmas).
According to the BDSI, 58% of its member companies see the very complex new customs formalities greatest challenge for a smooth process in logistics. Around 15% of businesses fear that their products because of logistics hurdles will temporarily not be on British shelves. Notably, around one in 10 companies have discontinued exporting to the UK, according to the organisation’s latest analysis.
The companies named driver shortages as another major issue, and a further key challenge regarding health entry restrictions (particularly due to the coronavirus crisis), notably for drivers who found themselves stuck in Britain at the end of 2020 due to temporarily closed borders. It has been reported that after enduring such a negative experience, many of those logistics workers caught up with those delays no longer want the responsibility of transports to the UK.
Furthermore, 18% of companies fear further tightening of the coronavirus-related entry requirements will create additional problems for one smooth process in logistics. This mainly applies to the compulsory covid tests after a 72 hours stay in high incidence areas and entry registrations.