Best estimates put a figure of 20% of tractor units standing empty all over Europe.
Why? We simply haven’t got enough European HGV drivers. In the U.K and Germany alone, a shortage of 300,000 HGV drivers is predicted by 2020.
With e-commerce having an increasing share of all retail sales in the uk, up from 16.4-18% between 2017 and 2018, the demand for transport services is growing rapidly. Supply of transport on the other hand, is falling.
Basic economics has kicked in. The days of a forwarder or logistics company dictating rates to European and UK hauliers are long gone. UK and European haulage rates have been steadily increasing throughout 2017 and continue to do so.
To add to the existing crisis, the Freight Transport Association fears that the UK’s impending departure from the European Union will greatly exacerbate the problem of driver shortages and shortfalls of staff within the wider logistics sector, with concerns that this is already beginning to happen.
For more information about how Brexit will affect your shipment visit our Brexit page Here.
Due to our rapid growth over the last 12 months, Espace have been making waves in the press. Read this extract from an article in the Express and Star:
Freight forwarding company Espace Europe has taken on 10 people over the previous 18 months – as well as an apprentice – and is set to recruit again as it continues to grow.
“Our plan is to turnover £9 million this year and £10m next year; doubling our figure of £5m in 2017,” explained Lichfield-based Espace’s managing director Tony Shally.
It follows his decision in September 2017 to transfer 100 per cent of the shares of his company to his staff, making his then team of 17 the sole beneficiaries via an Employee Ownership Trust.
“Since the transfer, turnover has increased, the team has swelled to 27, profits have increased by 35 per cent, additional premises have been secured, and three new services are now offered to our clients. And importantly, staff engagement and motivation levels are at an all-time high. Our people are at the centre of Espace and they understand what customers want,” said Mr Shally.
The employee ownership model caught the attention of Solihull-based freight company, Westhaven Worldwide Logistics, which liked the concept so much, they sold their business to Espace in June 2018 and transferred their three employees to Espace’s Lichfield office.
“The switch to employee ownership and the purchase of WWL has been a ‘win win’ for everyone. My loyal staff are helping me to develop Espace into the Midland’s ‘go-to’ company for commercial freight delivery on a national, European and global scale. I couldn’t be happier with my decision to leave my company to them,” said Mr Shally.
To read more visit the Express and Star website here
In the event of a no deal Brexit the UK government have announced they will introduce Postponed VAT Accounting (PVA) for both EU and non-EU imports by UK registered businesses.
This will enable VAT registered businesses to declare and recover import VAT on their VAT returns, rather than having to pay it upfront and subsequently recover it on their VAT return.
How will this work?
Registration will not be required for importers to use PVA. The intention to use PVA for an import will be declared on the customs entry.
This will come into effect from Day 1 of a no deal Brexit, however it will be optional. VAT can still be paid upfront if an importer wishes to do so.
What statements will be issued?
C79 VAT certificates will not be issued for goods declared using PVA. Instead a monthly postponed import VAT statement will be made available for importers via the government digital service.
This statement will indicate the total VAT postponed for the previous month in order to declare this on the quarterly VAT return.
PVA currently does not exist in the UK. More details on this service will be published by the government in due course.
Other VAT deferral methods.
The currently allows two systems for import VAT deferral (standard deferral and SIVA).
SIVA (Simplified Import VAT Accounting) requires a lower level of financial security than standard import VAT deferral. We therefore suggest importers seek SIVA approval first. VAT registered businesses can apply for SIVA online
Need more help on Brexit?
For more information on how the UK’s attempts to leave the EU will affect your business visit our Brexit Import & Export Guide.
Whilst most imports bans make a whole lot of sense when it comes to things like weapons and drugs. Other import bans can be a little harder to understand and come across as somewhat bizarre. Below are a few of the bizarre import bans from around the globe.
Chewing Gum Is Not Allowed in Singapore
People who are found to be with chewing gum face fines of up to $100,000 (SGD) and a prison sentence.
Banned Baby Walkers in Canada
Canadians caught with baby walkers or caught selling baby walkers can face fines up to $100,000 (CAD).
Haggis Banned in The United States
Since 1971 haggis is illegal to import in the US. Sheep’s lungs, a key ingredient of haggis is banned by America’s food standards agency.
Lightbulbs in Australia and Cuba
Incandescent lightbulbs are banned in Australia after a law was passed in 2007. Similarly, Cuba banned all import of the lightbulbs in 2005.
Fancy Dress Masks in Saudi Arabia
Due to the movie ‘V’ for Vendetta Saudi Arabia in 2013 have banned Guy Fawkes’ masks. The mask became a popular way for protesters to protest and retain their anonymity.