Brexit no obstacle for Waberer’s as trucks continue to flow into UK
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Hungarian road transport giant Waberer’s International has told Trans.INFO that “the negative impact of Brexit has not really materialized” with regards to its business.
In recent times, some major logistics companies like DB Schenker and DPD have suspended their GB-EU services.
However, Roland Hegyesi, Commercial Director at Waberer’s, says that thanks to its timely preparation, skilled team and close cooperation with its customers, the Hungarian road transportation company is still able to serve its customers smoothly.
Transportation tasks in the UK make up almost 30% of Waberer’s portfolio, so the only possible option for the group was to prepare for the new conditions in time, explained Hegyesi.
As a first step, Waberer’s set up a designated team of customs experts in order to start preparing for the Brexit changes together with its clients. The customs team were instructed to get to grips with the new tasks arising from the consequences of Brexit, as well discuss plans with various agencies.
In addition to that, the group of experts operated as coaches and counsellors by preparing materials for training purposes and providing professional advice.
Furthermore, the company observed that Brexit actually created the opportunity for the company to launch a new service: GB-EU customs clearance for their existing and new customers.
Zero tariffs and zero quota is good, but customs procedures are proving costly
In Hegyesi’s view, although UK-EU deal is zero tariff/zero quota, there are still barriers in the form of additional paperwork:
The zero tariffs and zero quota provision of the EU-UK Trade Agreement is definitely a positive result. But from a transport point of view, the management of administrative tasks, customs procedures and waiting times results in the involvement of extra resources.
However, with the right preparation, Waberer’s says its customers are served smoothly, and the company is also open to serving the increase in demand expected in the coming months.
A rise in volumes from week to week
When asked whether Waberer’s had experienced a sudden decrease or shift in volumes, the company said it was transporting lower volumes, which was not uncommon at the beginning of the year. Volumes have nevertheless been rising from week to week.
This is especially the case because many of their competitors, whether it be temporarily or not, have left the market.
For us, the negative impact of Brexit has not really materialized – admits Hegyesi.
The Waberer’s commercial director also informs us that rates have increased significantly in the market for freight in the UK. As it is difficult to estimate several of the extra costs entailed by Brexit, current freight rates show a large variance. However, those rates are not only driven by rising costs, but also by scarce freight capacity.
Finally, Hegyesi told Trans.INFO that the number of clients who have suspended commercial activities with the UK is “negligible”:
For most customers [EU-based customers], we find that they are waiting until the impact of Brexit is clearly visible. But the number of clients who decided to suspend commercial activities with the UK is negligible at the moment.
Photo credit NotrucksNolife / Wikimedia Commons