It already seems like a long time ago, but it is less than four years since the UK held a referendum on whether to leave or remain in the European Union (EU), and the leave vote won.

Since then, British businesses have been through a roller coaster ride, with dates for Brexit being set and passing, and three years of predictions that have been both positive and negative.

The deal that will see the UK leave the EU has not yet been finalised, and British businesses will have to wait a little longer to know exactly where they will stand when Britain finally makes its exit.

The year 2020 arrived on the back of a Conservative landslide in 2019’s late general election, and a No-Deal Brexit seems more much likely, or at least a much harder Brexit than was envisioned under Theresa May’s administration.

Whatever happens, Brexit will have huge implications on the haulage industry in the UK, and freight transport as a whole throughout the European Union.

Here are some of the ways we can expect Brexit to affect the UK haulage industry.

A Short-Term Reduction in Trade and the Movement of Goods

Previously, the UK was a part of the European single market, and this allowed free trade between the UK and the other EU member states.

When the UK eventually leaves the EU, ending any blanket trade agreements, new deals will have to be struck to continue trade between nations. These arrangements should be finalised in 2020, but many industries expect a short-term reduction in trade after the transition period.

The EU accounts for around 44% of British exports, a staggering amount, so these deals are going to have a huge impact on the UK haulage industry.

Any short-term reduction in the amount of goods traded between nations means less work for haulage firms and their drivers.

The deals made over the next twelve months will be crucial to British businesses, but haulage firms and logistics companies will feel the effects acutely.

An Increase in Operating Costs for the Industry

Many industry watchers and business insiders feel that Brexit will increase the cost of business for haulage firms.

It is very likely that trade tariffs with the EU will increase post-Brexit, which will impact the profits of companies that export their products, and many will try to pass this expense onto the UK haulage industry.

Fuel costs are also likely to be volatile, especially in the first few weeks and months after the transition period. Most firms are already preparing for an increase in fuel costs, and budgeting accordingly.

The reduction in the freedom of movement of goods and services between the UK and EU member nations will impact operating efficiency for all industries, reducing the profit margins for hauliers.

Most Legislation Remains the Same for Goods Vehicles and Haulage

There are some positives for the haulage industry to look to.

Leaving the EU has little impact on the laws that govern the industry, as most of the relevant legislation comes from the UK Government.

The Goods Vehicles (Licensing of Operators) Act 1995 will be unaffected by Brexit.

The legislation that governs the number of hours a driver can work was initiated by the European government, but was incorporated into the Transport Act 1968, and will likewise be unaffected.

Any changes that are made to transport legislation in the near future must to take into consideration the UK haulage industry’s need to compete on a level playing field with their EU counterparts.

It is thought that we could see new legislation with regards to road safety and the implementation of smart tachographs to keep Britain's haulage industry and HGVs in line with the EU.

Industry watchers expect a change to tachograph rules to keep Britain and European standards in close proximity and to ensure road safety is maintained even after British HGV drivers, and indeed all UK workers, are no longer subject to the European working time directive HGV rules.

You can read more about Tachograph Rules with this article from FleetGo. FleetGo has offices across the EU, and in the UK, making them perfectly placed to understand Brexit and its implications. They give haulage firms access to the latest technology, such as smart tachographs, to help them manage their fleet and their drivers.

New Border Controls Could Cause Delays and Increase Costs

One of the biggest issues surrounding Brexit as a whole is border controls. The volume of trade between the UK and EU is expected to remain the same, or even increase overtime, but Brexit will create more border checks and will slow down the flow of goods between the two trading partners.

The border between Northern Ireland and the Republic of Ireland is causing a number of headaches for politicians and hauliers alike. The border has been completely ‘frictionless’ for decades, and a physical border between the two nations is prohibited under the Good Friday Agreement, which brought peace to Northern Ireland.

If border checks are going to be implemented along this border, it will require new technology and infrastructure to be in place, so some compromise is expected between the UK and EU over this important border and trade route.

Any new borders or customs checkpoints will cause significant delays to the haulage industry while it adapts to the new regime, and it is becoming impossible to predict what the cost to British trade will be in after the transition period.

There Could Be a Labour Shortage in the UK Haulage Industry

When the Brexit transition period is over, and all the new and relevant legislation has been passed, many industries are expecting a labour shortage, and the haulage industry is no exception.

The free movement of labour in the European Union has led many domestic firms to hire HGV drivers from EU nations, particularly if they had a lot of trade routes through the European continent.

One of the biggest deals that need to be struck between the UK and EU concerns how people from EU nations living and working in the UK, and vice versa, will continue their employment.

No one knows what is going to happen, but most industries are preparing for a shortage in labour, as EU workers either leave of their own accord or find it harder or more prohibitive to work in the UK.

This could have a massive impact on some UK haulage firms, and already many are making investments in training UK workers to be HGV drivers so they can honour their contacts in a post-Brexit UK.

A Short-Term Reduction in Business with the EU
The haulage industry is incredibly important to the UK, and employs thousands of people in the country, not just as HGV drivers, but also as managers, mechanics and office staff.

The uncertainty generated by Brexit, its prolonged political process, and the lack of firm information coming from both the EU and UK governments has already had an impact on a number of British industries.

Most haulage firms have seen a drop in the number of contracts with EU companies, or a reduction in the length of existing contracts as businesses on both sides of the English Channel prepare for the worst and hope for the best from Brexit.

After the transition period is over, businesses will have more confidence in the future of British trade, but will still operate with some caution in the early days.

The new border controls and customs checks are likely to have some teething problems that will impact business transactions between UK and EU traders.

Whatever happens after the transition period, in the short-term there will be lots of disruption to the UK haulage industry and significant changes for haulage firms to navigate.

There will also be lots of opportunities for companies to take advantage of new trade deals and win new contracts that may help them grow in a post-Brexit UK.