Logistics needs transition extension to counter COVID-19 challenge, says FTA

Wednesday 25 March 2020

The challenges posed by the COVID-19 virus will make the effective implementation of any new legislation impossible in the short term, says FTA, the business group representing the logistics sector. As a result, the industry is petitioning government urgently to seek an extension to the current transition period for leaving the European Union, as well as suspending other planned domestic legislation which will impact the logistics sector.

“This is not about the relative merits of Brexit, or any trading arrangements which our industry will need to adopt,” explains Elizabeth de Jong, Policy Director at FTA. “This is purely and simply so the businesses tasked with keeping the UK’s supply chain intact can concentrate on the serious issues which the COVID-19 pandemic is placing on the industry.

“Logistics is facing unprecedented challenges, both in terms of keeping the UK economy supplied with all the goods it needs to function, as well as coping with the increased disruption to staffing levels caused by sickness and self-isolation and concerns about the viability of their businesses. Our first priority is always to deliver for our customers, and there is simply not enough capacity available to plan the major structural changes needed to implement a successful departure from the EU, as well as the myriad of other planned legislation changes on the horizon, as well as dealing with unprecedented pressures caused by COVID-19.

In addition to requesting an extension to the Brexit transition period, FTA is also asking ministers to consider suspending the implementation of other legislation which will affect logistics operators in the short term. This includes the expansion of the London-wide Low Emission Zone for HGVs and the London Direct Vision Standard due to take effect from October this year, as well as the start of other Clean Air Zones around the country, in areas including Birmingham and Leeds.

“All this new legislation, and new trading arrangements, need careful planning and implementation in normal circumstances. But it is clear they would bring major change to our sector at a time when we are fully committed to overcoming the challenges which COVID-19 presents,” continues Ms de Jong. “In addition to the administrative, practical and financial difficulties experienced by our sector, the pandemic will undoubtedly have a significant impact on supplies of new equipment, technology and vehicles in the coming months, as well as the industry’s ability to recruit and train new staff. Add in the challenge of adapting to new trading arrangements with the EU – which are yet to be formalised – and the situation is placing logistics under huge and unnecessary pressures.

“Logistics is a flexible industry, but such significant change cannot happen overnight, and there is simply not the capacity for planning and delivery of new legislation at present within the system. COVID-19 has created a once-in-a-lifetime emergency situation which needs the full attention of the whole sector – adding in a host of new legislation would place untold, unnecessary pressure on a supply chain that is already stretched. Our industry needs the support of government, not to be broken by it.”

Efficient logistics is vital to keep the UK trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. FTA is one of the biggest business groups in the UK, supporting, shaping and standing up for safe and efficient logistics. We are the only business group in the UK that represents all of logistics, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.