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LQD - UK losing logisitic business

by ATinNM Wed Nov 13th, 2019 at 11:14:06 PM EST

Shadow of Brexit fuels Dutch warehouse logistics boom

"Post-Brexit, the U.K. cannot function any more as a key entry and exit gateway of the EU," Lehmacher said. "Too many factors may hinder the fluidity of the supply, ranging from administrative burden to potential delays."

He added, "Flows of goods that can, will avoid the U.K. and U.K. warehousing and distribution facilities will be closed and reopened in markets in the EU, mostly in the Benelux countries where most of the EU distribution centers are located."

Jorn Douwstra, business manager for international trade and investment at Rotterdam Partners, also confirmed the trend, noting that financial and insurance companies had already moved to the Rotterdam area to avoid licensing issues.

"We think that a lot of multinationals already have a plan to move," he said. "A lot of small businesses in the U.K. don't know what to do and are waiting until there's a final decision on Brexit. And we see a lot of mid-size companies trying to make up their minds."

SMEs will move or they'll go under.  The UK's international trade infrastructure is way over-built for a market of 66.4 million people.  

Data point: my own employer used to require that all small to medium size shipments, like prototypes and pre-series, to EU countries must transit by one of our sites in northern England (a majority Leave area in 2016). This was the procedure for every shipment from outside of the EU to any EU country: they had to go through this UK "transit hub" first, where they would ship it again to their final destination in Germany, Spain, France...

Earlier this year, this "transit hub" function was transferred to the Rotterdam area and the corresponding employees in the UK made redundant.

by Bernard (bernard) on Thu Nov 14th, 2019 at 09:04:04 PM EST
How big a data point was it? i.e. how many employees lost their jobs and are now going round talking to people and blaming Brexit?

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Nov 14th, 2019 at 09:06:49 PM EST
[ Parent ]
but they don't blame brexit. they blame anything but brexit.

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Thu Nov 14th, 2019 at 09:24:04 PM EST
[ Parent ]
Oh, that was a rather small operation: half a dozen people at most; mass production logistics is handled by separate channels, depending on customers locations.

I just mentioned it because any "gateway to the EU" kind of operations in the UK, big or small, is facing relocation to the Continent, if not already done. The Japanese car manufacturers factories are on the line as well: back in the early 80s, Thatcher lured them to England as an entry point to the European market.

by Bernard (bernard) on Fri Nov 15th, 2019 at 10:12:36 AM EST
[ Parent ]
I'm currently readng Peter Hennessey's Winds of change about the politics of Britain in the 60s.

Even then, the government knew, absolutely knew, that Britain was either part of the European Community or it was doomed to precipious decline.

McMillan was a terrible Prime minister leaving the country mired in the sclerosis of an all-enveloping Etonian gerontocracy who make today's situation look hopeful, but even he could see an extinction level economic meteorite when he saw it.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Thu Nov 14th, 2019 at 09:22:49 PM EST

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