Brexit, or the United Kingdom’s exit from the European Union, was implemented on 31 January 2020 and there is now a transitional period for the British Islands to remain in the European market until 31 December. From that date onwards, citizens and companies will begin to notice the differences in a new bilateral relationship, which has yet to be defined.
Spain exports a large quantity of foodstuffs to the United Kingdom, which is a very important market for Spanish companies. In particular, and according to official data from the Foreign Trade Department, the United Kingdom is the fifth most important country for Spanish agri-food exports and represents 8% of the total. Sales in 2018 amounted to some 3,900 million euros, compared to imports of 1,100 million, a traditionally positive balance for our country. With the entry into force of Brexit, the quality, safety or prices of these products, which are very sensitive to any delays in procedures or transport, could be affected.
At RFL Cargo, experts in customised logistics solutions, with very specific services for all types of refrigerated transport, we follow the evolution of this process very closely as it may influence import tariffs, customs waiting times or bureaucratic restrictions.
Reusable wooden pallets, another stumbling block
The European Union plans that pallets entering the European Union will comply with the International Standard for Phytosanitary Measures (ISPM15). This means that all pallets used in transport require pre-warming to 56°C for a period of 30 minutes.
Although this standard does not affect intra-community trade, it will be in force for trade with countries outside the European Union and that, of course, will include the United Kingdom from 1 January 2021. In this way, the pallets that are currently being used will not be able to enter European territory if they do not pass this warming process, unless there is an agreement between both parties to create an exemption to the rule. Furthermore, the UK does not have enough standard pallets to maintain the normal pace of activity in the sector.
Food e-commerce, on the rise
On the other hand, the online purchase of food products already reaches 2% of the market share thanks to the consolidated growth rates of up to 30%. Numbers that went up to over 200% during the period of confinement in Spain, according to data from some experts who recently met at the BNEW forum in Barcelona.
For the time being, and in order to respond to this significant increase, logistics operators have had to demonstrate their high level of digitalisation in order to adapt to the extension of time slots or improvements in logistics.
