The Brexit uncertainty: What it means for the supply chain
With less than a month to go until Brexit, uncertainty is still the big game player in all negotiations. The next deadline at the end of October is putting pressure on warehouse operators and storage businesses to prepare for any possible scenario.
The law says that the UK’s government must seek an extension if no deal is agreed by 19th October, but this may not be the chosen path by Boris Johnson and his allies.
The prospect of delays moving goods through Irish and British ports is leaving some challenges for industries that handle perishable products.
New scenario
Traditionally, many businesses store their stock in owned or rented warehouses in Ireland. Being that the UK is a much easier point to access from Europe, many moved their distribution units there. This was an inexpensive, effective, quicker way of distributing across the EU’s single market. Now, the opposite is happening.
A no-deal Brexit would potentially delay distribution between the UK and the other markets – including Ireland – which would be unbearable for some industries where products have less than 5 effective days of life – e.g. consumables such as vegetables.
Under these circumstances, businesses have been stockpiling and looking for alternatives to get the products from other EU countries directly and therefore avoid non-EU checks from the UK.
Space
This new scenario is hugely affecting the available warehouse space in Ireland. Stockpiling started becoming a top priority for many businesses since the last critical Brexit deadline at the end of March and many warehouses are still running near full capacity.
Christmas
And now the countdown for Christmas is here. October is the busiest time of year for stockpiling as every business prepares for the big sales before and during the festive season.
Juggling the Christmas plans with the effects of a no-deal Brexit is the challenge many companies are facing. With a high demand for warehousing space, rental costs can climb up considerably making it difficult for businesses to cope. The Revenue Commissioners is doing its part by trying to approve space to store non-EU goods from the UK and not fall foul of custom rules.
If you too are on the lookout for a cold storage solution to help your business cope with the Brexit uncertainty, we can help. Speak to CRS today on 0818 929824 or click here to make an enquiry.
