By Neo Lehkela
Businesses in the UK are facing previously unheard-of difficulties when it comes to importing and exporting goods, as the global pandemic continues to wreak havoc on supply chains.
With delays at ports and changes to shipping schedules, many firms are unable to acquire the materials they need to function, leading to production delays and lost income. Company owners in the local area say the delays are having a considerable impact on their operations.
The Office for National Statistics (ONS) reports that in 2020, UK imports decreased by 11.5% and exports decreased by 9.9%. The main cause of this was a severe decline in demand from important trading partners like the EU, the US, and China. Businesses have had to pay more as a result of the pandemic’s effects on supply chains and logistics delays and disruptions.
Titus Brehave, 53, is the owner of a family manufacturing business in Birmingham. He expressed his frustration with the delays he has experienced over the past year.
“We heavily rely on imports for our raw materials, and it’s been a nightmare trying to get everything we need on time,” he said.
“Several times, we had to postpone production, which resulted in thousands of pounds in lost revenue. We’ve also had to turn down several large orders because we simply can’t get the materials, we need to fulfil them.”
Keeping afloat
The situation is equally as hard for companies that rely on exports to keep their company afloat.
“The pandemic has created an unprecedented situation for businesses involved in international trade,” said Ahmed Wohadi, 43, owner of a fruit shop in Tahir Halal Meats. He says his shop has struggled with importing fresh fruit and vegetables in recent times, alongside other food items.
Wohadi’s usual supplier has gone bust, but before he went out of business he was experiencing significant delays of up to four weeks on some items. “I have had to switch and find another international supplier as if I was to wait up to four weeks all the food would be rotten by then,” said Wohadi.
“Finding a new supplier means more money that our shop has to pay now.”
Further delays expected in 2023
The situation is not expected to change any time soon, as the global supply chain continues to be affected by the pandemic and consequences of Brexit. Businesses are being forced to adapt to the new reality and find alternative solutions to keep their operations running smoothly.
Some companies have turned to domestic suppliers in an effort to avoid delays, but this is not always possible. Others are exploring alternative shipping routes or using different modes of transportation to get their goods delivered. However, these solutions have their own set of drawbacks and frequently incur higher costs.
While businesses continue to negotiate the hurdles of the pandemic, it’s apparent that imports and exports will remain a critical area of worry. Without significant reforms to the global supply chain, local firms in the UK will continue to experience big setbacks and struggle to stay viable.
Despite the difficulties the pandemic has caused, there have been some encouraging developments in UK trade. The country’s exit from the EU has opened up new opportunities for trade with non-EU countries, and the UK has been pursuing trade agreements with countries such as Australia, Canada, and Japan.
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