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SHD Logistics Conference Review: UK Logistics in 2021

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Speaking on the subject of a recently released government white paper, Robin Woodbridge of Prologis opened the door by addressing recent supply and demand changes. After making a huge leap forward to online retail, record warehouse space was used in October. He explained that 18 million square feet of industrial space have been lost for other uses over the past 20 years. However, as demand increases and supply decreases, rents increase. Unless the location changes, cities like London will struggle to offer a wide variety of goods and services at the expected time of day, both B2B and B2C.

Woodbridge, for example by Bow Yard, just north of London’s Canary Wharf, emphasized the importance of using multi-storey warehouses to maximize floor space. Storage, manufacturing, e-commerce fulfillment, city delivery EV charging. Providing new industrial logistics facilities in London is a major challenge as new development opportunities are scarce and not just finding space. Other pressures include what logistics providers need and expect, being located somewhere where warehouse occupants can find employees, and facilities that function functionally from an operational point of view. Woodbridge has provided CGI flights for a new multi-level logistics facility close to Enfield’s M25.

Woodbridge reviewed a government white paper on its future plans. The Greater London Authority is working to protect London’s strategic industrial sites, but the government wants more residential properties. Not many people have read it, but Woodbridge says you should be concerned. Not having the right building in the right place with the right rent can lead to serious problems for individual businesses and sectors as a whole. He argues that the government did not plan the required detail, design and level of thinking. Therefore, UK logistics should raise awareness of the government, and at the moment the epidemic is taking note of our industry, it has a great opportunity. According to Woodbridge, the government seems to have little or no awareness of the UK logistics industry in strategic planning, but Woodbridge has asked listeners to submit consultation responses to the white paper.

Peter Ward, Chief Executive Officer of the British Warehousing Association, informed the government of the latest model of border operations in relation to the end of the Brexit transition period. He said that the worst-case scenario presented for Brexit in 2016 is no longer a model and is likely to be our reality-more than 200 million customs declarations have been added for goods imported and exported on this island. He explained how the industry should increase intermediary goods, customs brokers, and freight forwarders to handle the increased volume early next year.

The border operation model for 2021, which Ward overtakes, is as follows: In January 2021, the basic procedure includes deferred customs entry for all imports, along with full customs, safety and security declarations for all exports. Prior notice and related health documentation is required for all animal/plant products, including food, in April 2021. Ward points out that this will be a challenge as the UK currently imports 50% of its food products and 75% is imported within the EU. In addition to that, physical inspections will continue at the destination point until July 2021, at which point all commodity and physical inspections at the border for animal and plant products will be fully controlled.

Ward said there will be disruptions in the supply chain and the market will respond by putting more inventory into the supply chain. Basic supply chain management says that if you stop the flow, you need to provide more inventory to balance it. This will help you get the right results in terms of delivery time and product availability.

Ward has provided UKWA’s checklist for traders who want to be prepared for the impact of leaving the Brexit transition period, highlighting the importance of checklists for warehouse operators who want to ensure their customers are well prepared to handle future changes .

EORI (Economic Operators Registration & Identification) number All importers must register with this number. Export customers also need to register. The tariff number is the main driver of the tariff rate. Importers need to understand what category the product belongs to so that the correct level of tax is applied. In accordance with DEFRA regulations, plants, animals and forest products include a new level of testing. This includes wooden pallets. If it is not an ISPN pallet, it cannot be shipped to the European Union. In the EU Settlement Scheme, all EU logistics workers must be registered in the EU Settlement Scheme to continue working in the UK. The Smartfreight plan means that commodity drivers must obtain Kent access permits before accessing channel intersections.

In addition, Ward described the’Brexodus’ effect. Since the 2016 EU member state referendum, many Eastern European workers are gradually leaving the UK. The pound is devalued at around 20%, which could lead to more income in countries like Germany and Scandinavia. UKWA believes the threshold is set too high for EU workers, especially with the growth the UK logistics sector is currently experiencing.

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