What has caused the global supply chain issues?
The combined impact of the pandemic, the UK’s exit from the single market, and countless new customs brokerage rules and regulations have caused big problems for the movement of goods in and out of the EU, both for businesses and individuals. Despite the latest statistics revealing a recovery from the worst point (January 2021), these customs brokerage problems are still plaguing much of the global supply chain. Border restrictions and an increase in red tape continue to undermine the competitiveness of UK businesses. So much so that there’s now a real danger of falling behind European organisations. Exports from the EU were up 19.6% year-on-year to £178.2 billion in January of 2022, with sales rising the most to both the US (25.5%) and the UK (25.9%).
Even considering these statistics, there are still opportunities for EU growth and there’s still a lot to suggest that - with better customs brokerage - opportunities remain.
The Authorised Economic Operator (AEO) status, for example, is an internationally recognised quality mark that shows a business’ role in the international supply chain has customs procedures that meet global standards and criteria. If you hold this status, businesses can benefit from faster customs clearance for export cargo, essentially making the same EU opportunities available as they were pre-Brexit. Not only that, but a weaker pound helps UK companies export goods overseas by making products cheaper.
Obviously, for businesses to see growth in these markets, it’s more important than ever that they keep their goods moving in and out of the EU. Frighteningly though, 67% of firms experienced a challenge when exporting goods and 72% experienced a challenge when importing goods, just in the last month. As a result, businesses that can ensure smooth customs clearance for export cargo into the EU will gain a competitive advantage and, likely, see growth. So how to do it?
How can UK businesses combat the importing & exporting issues?
One way UK businesses can get back on top is to review their supply chains and evaluate whether a change of supplier might completely extinguish issues and smooth the UK export procedure. Embracing a fully end-to-end supply chain aids the customs declaration process by organising documentation ahead of time. This end-to-end supply chain can even customise warehousing and many other operational processes to create a solution that will smooth your customs brokerage worldwide. The visibility of products end to end also helps foresee potential disruptions and overcome them quickly.
A myriad of benefits await businesses that embrace an end-to-end supply chain: competitive advantage, fewer delays, happier customers, more sales, fewer costs, and less drain on resources.
If you’re interested in keeping your goods moving in and out of the EU and growing your business throughout Europe, JPGL can help. Our customs team are backed by 100 years of experience and can work with you to create a bespoke solution for your individual business needs.
To find out more contact our team today.