Dawsongroup | finance

Brexit: Flexible fleets will come out on top

Brexit is expected to spell disruption for the haulage and logistics sector, certainly in the short term, as new custom checks and rules come into force on January 1. Some industry experts have predicted potentially long waits at ports to get across The Channel, and a test run of post-Brexit border checks by French customs authorities in November gave a taste of things to come – resulting in queues of trucks stretching five miles along the M20. In this blog, we’re going to discuss the importance of being flexible throughout Brexit

Now and the future

Though all the parameters are as yet unknown, delays and additional costs are inevitable, and businesses in the sector will need to consider how they manage in the New Year; how they can account for long queues, whether that means additional fleet capacity, larger vehicles making fewer trips, or cold storage solutions.

Transversely at the current moment, many in the industry are finding their capacity exhausted as British businesses rush to stockpile goods in the final weeks before this major change.

Logistics companies have reported a surge in demand to bring goods into the country ahead of the anticipated disruption, with some freight companies advising customers the best thing they can do is stock up ahead of time –driving up the cost of cross-border deliveries and cutting capacity.

Flux and flexibility with asset finance

Supply chain resilience will be customers’ number one demand so logistics businesses need to anticipate and overcome the pending challenges.

The huge flux in demand and circumstances as we approach this Brexit cliff edge and go beyond it means it is more vital than ever that businesses are in a position to flex and adapt – adding to their fleet or altering it, and amending their approach as needed.

As always in turbulent times, cash is king. So leasing or contract hire could well be the solution businesses need to respond quickly to the changing circumstances without a large initial outlay, and the security of fixed monthly installments going forward – especially important with the cost of truck ownership set to rise as a result of Brexit taking effect.

The coming Brexit storm, combined with the ongoing challenges of the pandemic, can’t be avoided – but there are ways to prepare to navigate them more successfully. Get in touch with us now so we can get to know your business and its particular challenges, and explore with you the asset finance options which can help you flex through Brexit.