By Colin Haines, General Manager of Cargo Overseas Limited

The United Kingdom's departure from the European Union marked the most significant shift in British trade policy in half a century. The initial waves of disruption have since settled into a "new normal"—a complex, often challenging, but ultimately navigable frontier for global trade. For businesses importing to or exporting from the UK, understanding this new landscape isn't just an advantage; it's essential for survival and growth.

The era of frictionless trade with the EU is over, replaced by a framework of customs declarations, regulatory checks, and new operational realities. While this has introduced complexities, it has also created opportunities for businesses that are agile, informed, and partnered with the right logistics experts.

To demystify the current state of UK freight forwarding, we sat down with Colin, an industry veteran from Cargo Overseas Limited, our Freyt World partner in the strategic hub of Manchester. With decades of on-the-ground experience, Colin provides a masterclass in navigating the challenges and seizing the opportunities of post-Brexit logistics.

"The key change is mindset," Colin explains. "For years, moving goods between the UK and EU was akin to a domestic delivery. Now, every shipment is a formal international transaction. Businesses that grasp this fundamental shift are the ones who are thriving. It requires diligence, expertise, and a proactive approach to compliance."

This blog will serve as your comprehensive guide, drawing on Colin's expert insights to explore the primary challenges, highlight emerging opportunities, and provide actionable strategies for optimising your UK supply chain.

The Core Challenge: Customs Complexity and the Border Target Operating Model (BTOM)

The single greatest hurdle introduced by Brexit is the customs barrier between the UK and the EU. This involves a host of new processes that can seem daunting to the uninitiated.

Understanding the Paper Trail

At the heart of the new system is the requirement for comprehensive documentation for every shipment. This is no longer a simple case of a dispatch note; businesses now contend with:

• ∙ Customs Declarations: Both import and export declarations are mandatory. These are complex documents requiring precise information, including commodity codes (HS codes), customs procedure codes (CPCs), and valuation details. A minor error can lead to significant delays and potential fines.
• ∙ Commercial Invoices: Must be detailed and accurate, forming the basis of the customs declaration.
• ∙ Packing Lists: A clear inventory of the shipment's contents.
• ∙ Rules of Origin: This is a critical and often misunderstood area. To benefit from the zero-tariff trade agreement (the Trade and Cooperation Agreement - TCA), goods must "originate" in either the UK or the EU. Proving this requires specific supplier declarations and a deep understanding of the criteria, which can vary based on the product's components and manufacturing process.

"We see 'Rules of Origin' trip up even experienced shippers," notes Colin. "Just because goods are shipped from an EU country doesn't mean they qualify for preferential tariffs. If a product was originally made in China, imported to Germany, and then shipped to the UK, it will likely attract tariffs. Having a partner who can audit your supply chain for origin compliance is invaluable."

The Border Target Operating Model (BTOM)

To manage this new customs frontier, the UK government has been incrementally implementing the Border Target Operating Model (BTOM). This risk-based approach categorizes goods (high, medium, and low risk) to determine the level of checks required.

• ∙ As of January 31, 2024: Health certification became mandatory for 'medium-risk' animal products, plants, and plant products imported from the EU.
• ∙ As of April 30, 2024: Documentary checks and physical, risk-based identity checks at the border commenced for these medium-risk goods.
• ∙ From October 31, 2024: Safety and Security (S&S) declarations will be required for imports from the EU.

"The BTOM is the UK's long-term plan for its borders, not just with the EU but globally," Colin states. "It means businesses must have their compliance in order. You can't afford to be reactive. We work with our clients to pre-classify their products according to BTOM risk categories and ensure all necessary pre-notifications and certifications, like CHEDs (Common Health Entry Documents), are in place well before the goods move."

Port Congestion and the Rise of Regional Hubs

The historical reliance on the Dover-Calais short strait crossing created a single point of potential failure. Post-Brexit, the introduction of checks and processing times has put this route under immense pressure, leading to the infamous queues and delays.

This has catalysed a strategic shift in UK logistics: the decentralisation of entry points and the growing importance of regional hubs. Forward-thinking companies are now diversifying their routes to build resilience.

The Manchester Advantage: A Northern Powerhouse

This is where a strategic location like Manchester becomes a powerful asset. Situated in the heart of the UK, Manchester is the nexus of the "Northern Powerhouse," offering unparalleled connectivity and a robust logistics infrastructure that bypasses the congestion of the Southeast.

"Manchester is more than just a city; it's a strategic logistics ecosystem," emphasizes Colin. "We are positioned to offer genuine advantages in the post-Brexit world."

• ∙ Proximity to Major Ports: Manchester is strategically located near major deep-sea ports like the Port of Liverpool, which has seen significant investment and expansion. Goods can be routed directly into the North of England, avoiding the saturated road networks around the Channel ports. Other ports like Immingham and Teesport are also easily accessible.
• ∙ Manchester Airport (MAN): As the UK's third-busiest airport, MAN is a global cargo hub with the capacity to handle vast amounts of air freight. Its world-class facilities ensure that time-sensitive and high-value goods can be cleared and distributed rapidly across the country.
• ∙ Unrivalled Motorway Network: The M6, M62, M60, and M56 motorways intersect near Manchester, providing direct and efficient road access to Scotland, the Midlands, London, and all corners of the UK. This allows for faster final-mile delivery and reduces reliance on the M25.

"By using Manchester as a primary point of entry and distribution, our clients at Cargo Overseas Limited mitigate the risks associated with the Channel Tunnel," Colin explains. "It's about smart routing. We can bring a container into Liverpool, clear it, and have it in our Manchester warehouse for destuffing and nationwide distribution in a fraction of the time it might take to get through the Southeast and travel north."

Seizing the Opportunities of the New Era

While the challenges are real, the post-Brexit environment is not without its silver linings. The disruption has forced a much-needed evolution in the industry, accelerating trends that are creating more resilient, efficient, and transparent supply chains.

1. Technology and Digitalisation

The necessity of digital customs submissions has accelerated the adoption of technology. Modern freight forwarders are leveraging sophisticated software to automate documentation, provide real-time tracking, and ensure seamless data flow between shippers, hauliers, and customs authorities.

This digitalisation leads to:

• ∙ Reduced Errors: Automated systems minimise the risk of human error in complex declarations.
• ∙ Increased Visibility: Clients gain a clearer, end-to-end view of their shipment's journey.
• ∙ Enhanced Efficiency: Faster processing of documents means faster clearance at the border.

2. Supply Chain Optimisation and Resilience

The vulnerabilities exposed by Brexit and the pandemic have pushed businesses to re-evaluate their supply chains. The "just-in-time" model is being supplemented by a "just-in-case" strategy, which involves:

• ∙ Supplier Diversification: Reducing reliance on a single region or country.
• ∙ Strategic Warehousing: Holding critical stock within the UK to buffer against potential delays. Companies like Cargo Overseas Limited offer warehousing and fulfilment services that are integral to this strategy.
• ∙ Multi-modal Solutions: Utilising a mix of sea, air, road, and rail to create flexible and robust logistics networks.

3. Exploring New Global Markets

With the UK operating as an independent trading nation, new Free Trade Agreements (FTAs) are being forged with countries around the world. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a prime example, opening up preferential access to a bloc of 11 Pacific nations.

An expert freight forwarder is crucial for capitalising on these new agreements, providing the knowledge to navigate the specific customs procedures and rules of origin for each new market.

Your Partner in a Complex World: The Freyt World Standard

Navigating UK logistics today is not a DIY task. The financial and reputational risks of non-compliance are simply too high. Success hinges on partnership.

This is where the power of the Freyt World network and local experts like Colin and the Cargo Overseas Limited team becomes clear. Their role has evolved from simply moving boxes to being indispensable strategic consultants.

"Our job starts long before the cargo moves," Colin concludes. "We conduct a full review of a new client's products and supply chain. We classify their goods, verify origins, advise on the most efficient routing, and set up all the necessary customs formalities. We act as their outsourced compliance department, their strategic advisor, and their problem-solver on the ground. In this new era, that's the level of partnership businesses need to succeed."

The post-Brexit is a new frontier, but it is not an impassable one. With diligence, strategic planning, and the guidance of a seasoned expert, UK trade can be as seamless and efficient as ever. By leveraging the strategic advantages of hubs like Manchester and the deep expertise of partners like Cargo Overseas Limited, your business can confidently navigate the complexities and unlock the opportunities of Britain's new place in the world.

Freyt World Blog Contributor

Colin Haines

General Manager, Cargo Overseas Limited, a member of the Freyt World Network

Freyt World is a global logistics network uniting members from around the world. Our mission is to revolutionize global logistics through collaboration and innovation. Our platform goes beyond networking, enabling members to excel and grow together, featuring articles by logistics professionals for their peers. This series will cover industry-relevant issues and news, providing valuable insights for professionals in the field.