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Swallow is one of thousands of freight forwarders and customs
brokers based around Britain's biggest ports who have described
the overnight introduction of a full customs border as akin to
the country placing economic sanctions on itself.
Britain's New Year's Eve departure from the European Union's
orbit after 47 years of membership means exporters must now
provide customs and safety declarations, health checks and rules
of origin details to trade with its biggest partner.
"We are now at a disadvantage to people trading within the EU,"
Swallow, a co-director of Jordon Freight, told Reuters in his
office next to the vast cranes that tower over Felixstowe docks,
Britain's biggest container port, on the south east coast of
England.
"We're a very fast-paced business, but now we're just like
walking through mud. There's just paperwork everywhere."
Prime Minister Boris Johnson, the face of the Brexit campaign,
argued that a more nimble Britain would be able to trade
globally if it cast off the shackles of what he said was an
overly bureaucratic EU.
But those companies that trade goods between Britain and the
bloc are paying a price, particularly small firms. While the EU
applied full checks on goods entering from Britain, the UK is
phasing in its own customs rules for imports over six months.
Previously Swallow's firm, which moves up to 10,000 truck loads
across Europe a year, would have handled an equal measure of
imports and exports. In January his exports have all but
disappeared and the price of bringing goods in has jumped.
RED TAPE
He said many EU drivers were adding 400 pounds ($550) to the
cost of driving into Britain so they were covered if they
returned without any goods. The industry estimates up to half of
the trucks going back to the EU are empty.
"We have calls daily at the moment with people, desperate,"
Swallow said. "They need to get their goods moved before the
buyer decides to go somewhere else. (But) it's too much. They
just can't comprehend all that needs to happen."
As Swallow was speaking, a member of staff was slowly talking a
customer through the steps now required, including producing
commercial invoices, a packing list, an export accompanying
document, a goods movement reference and more.
Make UK, the manufacturing trade body, said 60% of 189 companies
it surveyed say they have suffered "significant disruption"
despite having prepared themselves for Brexit.
The government, which had warned that 7,000 trucks could be held
in queues if traders were not ready, is working to help smaller
firms adapt. Johnson acknowledged the teething problems but said
there will be benefits for trade in the long term.
Swallow said bigger firms had generally performed better by
throwing people and money at the problem. He is now worried
about how companies will fare with full import checks.
"The game has changed," he said, adding that UK Plc had been
based on the free flowing movement of goods. "This is a hard
Brexit, this is as hard as you can get without no deal. And the
consequence of that is, there's just a lot to do.
(Reporting by Kate Holton; editing by Guy Faulconbridge and
Giles Elgood)
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