BREXIT’s Failure to Launch, May Seeks More Time

BREXIT’s Failure to Launch, May Seeks More Time

2019-04-03T20:23:46+00:00April 3rd, 2019|Freight Market, Industry Spotlight|

Today, a besieged UK Prime Minister, Theresa May, announced intentions to seek a further extension for Britain’s exit from the European Union (EU).  May has already declared to implement any deal that was agreed to by the majority of UK Parliament, even agreeing to meet and compromise with the opposition’s Labor leader, Jeremy Corbyn.

At the moment, Britain has until April 12thto negotiate a plan or request more time for Article 50. If Parliament cannot approve any agreement with EU, Britain will be forced to leave on April 12thwithout a deal in place.

In the meantime, supply chains are facing significant disruptions. The agriculture industry will face the most severe impact with 98.7% of British dairy imports and 82.0% of meat exports sourced from the EU. As a result, shippers have been splitting inventories between the UK and Europe to accommodate for any surprises.

The Port of Dover has also warned people travelling to mainland Europe to prepare for disruption, urging passengers to have water and food for the potential delays. A two-minute delay when processing a vehicle can easily result in a 17-mile bottleneck. As a result, the port authority has cancelled workers’ vacations and brought in extra personnel to cope with the fallout of UK’s decision.

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