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Brexit chaos extends planning uncertainty for delivery firms

Courier, express and parcel operators along with all other businesses are still facing major challenges amid continued uncertainty surrounding Brexit.

On Wednesday, the UK parliament began considering as many as seven options for the UK 's departure from the European Union. These are: Theresa May’s negotiated withdrawal agreement; revocation of Article 50; a second referendum; May’s deal + a customs union; May’s deal + customs + single market; a free-trade agreement; or no deal.

EU leaders agreed last week to delay Brexit from the departure date of March 29 until 22 May if the withdrawal deal is approved by UK MPs. If not, the European Council said an extension until 12 April will apply, by which date the UK would be expected to come up with alternative proposals.

In the UK, the Freight Transport Association (FTA) has advised its members to continue preparing for a no-deal Brexit.

“We are disappointed that the uncertainty around Brexit continues, leaving business faced with significant challenges,” DHL said in a statement sent to CEP-Research.

“As a global business, Deutsche Post DHL Group is used to adapting to changing conditions in cross-border trade. Over the past 14 months, we have been working on various contingency plans and made a number of investments to mitigate potential challenges.

“Brexit, however, is presenting all companies with exceptional challenges and we have been considering various scenarios in this very fluid political environment. We are working closely with our customers, and remain fully committed to supporting their cross-border trade post-Brexit to minimize disruption where possible.”

FedEx Express' senior vice president for Northern European Operations, Trevor Hoyle, underlined that the best Brexit deal for the company's customers was one that avoided creating new barriers, streamlined customs processes, maintained regulatory cooperation and made it as easy as possible for businesses to bring their ideas and products to the global market.

“Regardless of recent political developments, FedEx continues to plan for all potential scenarios on behalf of our customers and team members, drawing on our 45 years of operational experience and 34 years of experience in international, cross-border logistics, often in complex and evolving trade environments. We also continue to engage with our customers to ensure they understand and are prepared for any changes in the trading environment and will continue to do so as long as the situation remains uncertain.”

No one was immediately available to comment at UPS and Royal Mail.

Meanwhile, CEP operators, along with other European road hauliers are today once again confronted with lengthy delays at Eurotunnel’s Calais terminal after French customs officers resumed their work-to-rule industrial action after a lull of several days.

The industrial action began on 4 March to highlight “inadequate” government measures to accommodate a ‘hard’ or ‘no-deal’ Brexit. Trucks are routinely stopped for checks as protesters seek to ‘simulate’ what they claim will be the working conditions they will be subjected to in the event of the UK’s hard exit from the EU.

According to a Eurotunnel service update from earlier this afternoon, waiting times for trucks to check in on its freight shuttle from Calais to Folkestone currently stand at four-and-a-half hours, and six hourly departures are in operation. There were 30-minute delays for trucks checking-in on the Folkestone-Calais leg due to heavy traffic, with six hourly departures in operation too.

A senior official of one labour union representing customs staff said that industrial action had been toned down since the end of last week as this had been a government prerequisite for the re-opening of negotiations. However, talks yesterday between the two parties had broken up without an agreement leading to a resumption of the protests.

Commenting on the impact of the French customs officers' work-to-rule on its business earlier this month, a spokesperson for FedEx Europe told CEP-Research: “The protests at the Eurotunnel in Calais have led to delays for some international shipments between France and the UK. Providing excellent customer service is our top priority and FedEx Express and TNT implemented planned contingency measures in order to minimize service delays and ensure continuity of operations to the best of our ability.''

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