Supply chain managers expect import delays to get worse, surveys reveal ​

Fri 26 Feb 2021
Posted by: Noelle McElhatton
Trade News

A majority of supply chain managers surveyed by the Chartered Institute of Procurement & Supply (CIPS) are experiencing delays of at least two to three days for getting goods into the UK – compared to 38% in a similar survey this time last year.

The situation was only slightly better for exports, with 44% experiencing delays of at least two to three days getting goods into the EU, the Guardian reports.

CIPS economist Dr John Glen expects the delays will worsen. 

In a report to the Scottish parliament, chemical company BASF said its biopesticide business “has not exported successfully from the UK during January”.

The company blamed a lack of guidance from DEFRA on “standard phytosanitary questions the industry warned of over two years ago” with hold-ups resulting in “damaged and unusable” products reaching the customer.

Increased costs

A report by LSE last year into supply chains post-transition predicted that the cost of compliance with rules of origin when importing into the EU would be about 8% of the value of the underlying goods.

Another survey of nearly 300 SMEs found trade conditions since transition period ended on 31 December have pushed up the cost of parts and raw materials for two thirds of small British manufacturers surveyed last month, reports Reuters.

The majority of firms questioned by consultants South West Manufacturing Advisory Service (SWMAS) and the Manufacturing Growth Programme, reported some level of disruption.

Some 65% of manufacturers reported higher costs, and 54% said they had greater difficulties exporting goods to the EU.

However, around a fifth of manufacturers thought they might gain from customers bringing work back to Britain from the EU.

Barnier warning

Meanwhile, Michel Barnier told diplomats yesterday to be “careful” not to repeat mistakes such as the move to trigger Article 16 of the NI Protocol earlier this year.

The EU trade deal negotiator also warned the EU to be “vigilant” in monitoring the UK’s adherence to the UK-EU trade deal and Withdrawal Agreement, according to Politico