Freight Industry Insights July 2024
30-07-2024
The 4th July saw a new Labour Government voted in with the biggest majority since Labour last won an election from a Conservative Government under the guidance of Tony Blair in 1997. I remember delivering newspapers as a 16-year-old lad and reading the headlines the morning after the ’97 election. There was a real sense of expectation for the change which was to come.
Sir Kier has wasted no time in starting to deliver his election manifesto. There’s far too much to cover here and much of it not relevant to international trade but a welcomed highlight is their promise to “reset relations” with the European Union. Not rejoin the EU or the Customs Union I hasten to add – but a significant improvement in relationships and building on common ground.
Starting with the European Political Community summit, a meeting of 40 EU and EU fringe leaders, held at Blenheim Palace, Sir Kier said “The EPC will fire the starting gun on this Government’s new approach to Europe… We will only be able to secure our borders, drive economic growth and defend our democracies if we work together.”
Labour will seek to deepen ties with the EU, removing what it calls unnecessary barriers to trade such as renegotiating the veterinary agreement to prevent border checks. It’s a sentiment all at Espace House heartily agree with.
It’s an outlook which is likely to cheer anyone involved in European trade. Particularly given recently reported figures showing imports from the EU to GB rose by 9% last year whilst imports from the Rest of the World over the same period actually fell by 9.5%.
Further disruption to the free flow of goods between the UK and EU could be on the horizon with the introduction of the new EU Entry-Exit System (EES) which will require every non-EU citizen to register biometric data, including fingerprints, at the EU border of entry. With many freight ports also being major passenger ports, this could cause severe disruption to supply chains. EES was due to go live in October but has been postponed to the 10th November.
Elsewhere in politics, the failed assassination attempt on Donald Trump and questions over his opposition look likely to seal the former President a second term in the White House. This will send alarm bells ringing in the UK and Europe as Trump will likely double down on protectionist policies in an attempt to boost the US economy and reduce funding to the defence of Ukraine, having previously encouraged nations to pay a larger share of GDP to Nato writing “The United States has provided a blanket of security to Europe for far too long.” Aside from the very real security issues, UK and European trade with the US could take a serious battering in the years ahead.
July often hails the beginning of the traditional factory fortnight in many industries. Truthfully, in logistics it never really stops but a slowdown gives us chance to take stock of the previous six months, and breathe a little, before we head into the pre-Christmas season. If you’re heading off on your holidays, we wish you safe travels and look forward to hearing about your breaks when you return.
Talking of holidays, make sure to follow Erik – our new globe trotting mascot on Instagram as he joins our co-owners on their travels @erik_the_espace_bear You can even adopt one of Erik’s cousins by making five or more freight bookings with us in any one month! Speak to your account manager for details.
Visit the Espace Europe Ltd website for more information on Freight Industry Insights July 2024
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