Logistics issues and delays are something all supply chain managers deal with, from ice roads in Alaska to cargo trains in eastern China, to post-Brexit UK. The issues have been magnified since leaving the EU and solutions must be found. Perhaps a quick jaunt into the near-future will provide some answers.
The year is 2038 and a large, sustainable logistics hub has been built in one of the deep-water ports in the North of England, perhaps Liverpool or Newcastle. The hub processes all imports and exports, originating in the north, bound for Europe, and beyond. Cargo moves through overnight ferry/shipping trips that coincide with mandatory driver breaks, it reduces emissions due the economies of scale, and it has excellent inbound access so supply chains are not disrupted and there is no double handling.
The dense delivery areas in northern England and Scotland are serviced efficiently and the pressure is taken off Dover, meaning the same for the South of England too. Finally, thousands of jobs have been created and the UK economy has grown.
Making that dream a reality, is of course, much more complicated. But the increased issues at the Port of Dover post-Brexit have seen uncertainty injected into almost all aspects of the supply chain. This is likely to be a long-term problem with unpredictability and vulnerability in many supply chains. In a survey of 180 UK and EU supply chain managers 60% say they have faced delays getting goods into UK. (Source: The Chartered Institute of Procurement & Supply)
Leaving the single market and the customs union has created a massive amount of new red tape, one truckload of goods now needs up to 150 additional consignments before it can be shipped. Besides the paperwork, managing a supply chain that has unpredictable delays is almost impossible for businesses and is frustrating for end users.
The EU accounts for 54 percent of all goods imported into the UK and almost half of all exports too (Source: The House of Commons Library). One importer and exporter of fast-moving consumer goods (FMCG) in the UK has experienced delays of anywhere between 2.5-3 hours to 3-4 days. The longer delays are a result of trucks needing an unexpected 100% check of all their cargo, something that wasn’t required pre-Brexit. Consequently, the FMCG supplier has started preliminary discussions to expand their warehouse storage in the UK to improve their safety net of additional stock.
The UK should see this atmosphere as a stimulus to rethink its supply chain strategies and make them more robust. Initially the decision to lockout low-skilled workers was exacerbating labour shortages, however HGV driver numbers are bouncing back with new training programmes and competitive wages.
Not all the issues with port delays are because of Brexit, but it has exacerbated festering underlying issues. With lots of necessary remote work over the last few years staff haven’t been able to get adequate training to make port checks more efficient. Fleet managers need to adapt, especially with improved communication. Considering the quick changes that were made because of COVID, the industry is optimistic that it can adapt quickly.
The Hub in the North
Creating a northern logistics hub would require a lot of investment. However, the North has a lot of untapped potential for logistics in comparison to the South. Many major road arteries have been upgraded, although the ones that haven’t offer a lot of potential for lane expansion. A former mining site on the M62 is being developed, near Knottingley, to become a massive exportation hub. The largest planned warehouse complex, ‘Big K’ will measure 735,896 sq. ft. Amazon have also already started to transition to more northern distribution hubs.
Interestingly, shipping miles cost and emit less than truck miles so maximising transportation via ships could be the way forward for logistics. Ultimately, logistics is all about cost in terms of miles and time. Therefore, creating a northern logistics hub would have to match the speed of the Channel Tunnel for moving goods in and out of Europe.
Bridging the technology gap at ports is also important, the hub could be a place for innovation and a way should be developed to reduce checks from 2 hours to 10 mins. Scanning barcodes is common in many other areas of logistics so for importing and exporting a similar system is surely possible.
A true northern logistics hub would have to overcome myriad challenges but the untapped potential for this often-overlooked region could reindustrialise the region for the future, allowing previous generations to pass on skills that are vital for keeping the modern world turning. Investment would bring jobs and all of the associated accoutrements (shops, families, talent).
The northern logistics hub could invent a fuel efficiency algorithm, similar to how Google Maps shows the most fuel-efficient route. A technological development like this would be useful to logistics workers and supply chain managers. Another challenge to overcome is having the software that can link together road traffic, shipping timetables and port queueing times.
There is untapped potential in a northern logistics hub, for logistics and the supply chain, there just needs to be the will to unlock it.
