No Brexit deal? No big deal.

No Brexit deal? No big deal.

It’s business as usual at BRUNEL AIR CARGO.

 

At the sometimes sunny offices of Brunel AIR CARGO, there is the usual buzz around the latest Brexit news. But, even though every job here relies on trade within and without the EU no one seems concerned. 

That’s because everyone here knows that even if we leave without a deal, we will still have to get our customers consignments in and out the country, and AIR CARGO will remain the fastest and most transparent way of doing it.

Sam Watts, who heads up our sales team says…”a  few of our clients have some concerns around Brexit, mainly because there is so much uncertainty. However, our long-term customers know that even if our industry is adversely impacted, we have the processes and experience to ensure their supply chains are adapted to minimize delays and any potential financial impact.”

The main general areas likely to be affected are:

  •  Flight operations and safety
  •  Air Services Agreements
  •  Border Management
  •  Aviation Security

However its Customs classification that most of us are talking about. As we leave the customs union will our classifications codes remain harmonised with the rest of the EU and will duty rates be aligned.

What is BRUNEL AIR CARGO doing to support customers?

As members of BIFA (British International Freight Association) and also IATA (International Air Transport Association) Brunel have access to all the latest news, regulation changes and training. We regular attend industry led events to ensure we are not only aware of potential changes but are actually a part of the conversations that will ultimately shape the future of our industry. 

The current situation

As it is currently, the UK has access to the single market which means there are few regulatory obstacles and no borders for trade to navigate. Our goods and services benefit from free movement and tariff free trade. This means we can transfer goods at low cost and with the minimum of fuss.”

However, this is set to change as the Governments official position is that we will leave the Customs Union. Latest reports suggest that we won’t now see a separation from the EU until at least October 2019.

The wider picture is that of an industry concern around increased costs and processing times. AIR cargo carriers are dependent on consignments to make routes profitable (when only carrying passengers it can prove to be commercial inviable) and want to avoid additional processing as the chief benefit of AIR cargo is the speed at which deliveries can be made.

What experience within BRUNEL AIR CARGO is going to be useful?

Brunel have always strived to offer our customers complete visibility; this means visibility of shipments including documents and customs declarations (all of which are uploaded through our customer portal) but also visibility on the processes we follow when handling shipments and the industry factors which will affect them. We will be regularly updating literature on our website and social media but most importantly we are always available on the phone to speak with customers about any concerns they may have. 

You can follow us on Linkedin and Facebook for regular updates and news!

 

What are the realistic changes likely to be?

Initially the expectation is for statistical entries to be completed for EU/Uk movements to try and minimise the impact of the additional processing. This will likely become a formal entry at point of entry once the systems become more robust. This will certainly have the greatest impact at major road freight ports such as Dover and Folkstowe as previously most of the cargo entering or exiting the UK would be in free circulation thanks to the European customs union. 

There will be minimal changes to non-EU imports as Commodity codes and duty rates are likely to remain aligned with the EU, this is one of the key Labour Parties points which is being publicly acknowledged by Teressa May. 

However, we may not see this accepted by the European Union.

What we do know is that there must be some form of entry on all future movements to or from the EU as we will no longer be part of the European customs union. 

The biggest concern for many is how their long-term bottom line will be impacted. Planning ahead as much as possible and centralising your projects to a single trusted provider will go a long way to securing long term savings and ensure reliability.

Will there be an impact on costs? If so, how?

We have developed a number of contingency plans that cover a “no deal” Brexit and what we believe to be the deal negotiated by Teresa May and the conservative party that will minimise the exposure to additional costs for our customers. 

It is likely that there will be additional processing costs for entries and the slow down at ports is likely to put strain on the port infrastructure which will certainly increase road freight costs as the additional waiting time will need to be accounted for unfortunately.

What we can do for our customers is ensure we help them manage this change in their business and 

Why is BRUNEL AIR CARGO different?

We understand and care about the differences between our customers. Deal or no deal, we will be helping each customer overcome the challenges that Brexit poses. 

What are customers key concerns?

Processing costs seem to be a worry and the lack of certainty around dates and regulations. Many are unsure about what kind of planning they can put in place.

No plan, no problem? BRUNEL AIR CARGO are here to help our customers with whatever concerns they have. If you have any questions contact us directly and we will be happy to answer any further questions you may have.

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It’s clear that well established organisations with a sound infrastructure will be able to continue to support customers through any disruption Brexit may cause. But, it’s the people within these businesses delivering a superior service who are committed to their clients that will make the difference. In order to keep the industry moving forward, good businesses will need to ensure any concerns and uncertainty around the new processes that will eventually be out in place are met and managed well.

WHAT WE WILL NEED AS AN INDUSTRY

  • IT systems and procedures that can handle the increase in processing
  • Time for the industry to adjust to the changes
  • Like to like procedures overseas to encourage a smooth relationship

What do you think? Let us know!

DID YOU KNOW…

The UK has the largest aviation industry in Europe, and its geographical position in the network is key, with around 80% of all North Atlantic traffic passing through the UK or Irish controlled airspace.

(source: https://www.iata.org/policy/consumer-pax-rights/Pages/brexit-study.aspx)