British ports could be in chaos as Brexit looms

There are just four weeks to go before Britain's historic exit from the European Union takes effect.But in and around the UK, there is widespread concern that UK ports and terminals and services to support the operation are not ready.

Under the current framework, Brexit will come into force on 1 January 2021, when border controls between the EU and the UK will be the first to be imposed.However, some operators in and around the UK have reported that rigorous testing of the systems needed to manage the flow of goods has not been completed, leading to fears that they will not be ready by the deadline.

Despite repeated government assurances, many people remain unconvinced that ports and port operators are ready.Based on current preparations, the latest forecast from the Irish Lorry drivers' Association suggests a disruption of more than six months 'duration, the BBC reported.

Why Is Brexit causing mayhem at UK ports?

First of all, Brexit means that the UK will no longer be bound by trade agreements between the EU and foreign countries, nor will it enjoy any applicable trade agreements with EU member states.In the absence of other bilateral trade agreements, trade between the UK and these countries would follow the general rules of the World Trade Organisation, which would affect customs procedures, tariffs and many other links related to the transport of goods, ultimately affecting logistics.

If the goods were shipped before the Brexit date but arrived in the UK after brexit, the goods would be subject to the new post-Brexit clause, which may be very different from the pre-Brexit clause.Under the eu's unified customs system, goods come in and out of the UK without having to go through multiple customs and pay taxes.

Second, brexit means that the UK will be subject to the EU24HR system of advanced shipping manifest, just like any other non-EU country.

The EU24HR rule requires shipping companies to make an entry summary declaration (ENS) to the relevant customs for all cargo on board a ship attached to one or more EU ports.In other words, all goods to eu countries, transshipment via EU countries, or stopping at eu ports on the way must submit complete and accurate ENS information to the customs of the first EU country before the ship arrives at the port of departure.

Finally, according to the UK Freight Transport Association (FTA), 12%, 14% and 34% of HGV drivers, van drivers and forklift drivers in the UK are non-EU nationals respectively. According to the post-Brexit immigration act, there may be a driver shortage crisis in the UK.

At present, British truckers can move goods between any city in the EU, but after Brexit, British truckers will be subject to the 1968 Vienna Road Traffic Convention, which will greatly reduce transport capacity and lead to higher road transport prices.

On February 10, the British government announced that it would open 10 free trade ports for innovation, trade and enterprises in the UK to accelerate the economic growth after Brexit.The advantages of the freeport model include:

1. Goods entering the free port are not subject to customs duties until they leave and enter the UK market

There is no duty if the goods are re-exported

3. If the imported raw materials are processed into the final goods, the duty will only be paid on the final goods

4. Free ports can be located inland or adjacent to ports.This would reduce the cost of moving or investing in existing manufacturing plants near the port

5. Shipping goods to a free port does not require a complete customs declaration, which saves time for businesses and makes it easier to import goods

6. Planning reform contributes to harbour development within the boundary and authorizes local governments to approve badly needed construction projects

7. The upgrade and renovation is conducive to the improvement of the area near the freeport

8. The innovation environment facilitates the trial of new technologies

9. Build partnerships among ports, companies and innovators.