In January’s blog, we touched on some of the challenges that were facing both Anglia Freight and the logistics industry. One of these is around recruiting staff with the right skills and helping them progress their careers for the future. To address this, we’ve been doing our bit to help educate young people about the world of logistics. How did we do this? That’s easy! We sent Commercial Director, Ben Moulton and Business Support Manager, Gina Helm back to school!

Ben & Gina at Careers Week
Gina’s children attend Debenham High School and we found out they were running a Careers Week in February. Kevin Voller from the careers team invited us to talk to pupils about the benefits of having a career in logistics, highlighting the types of jobs that are available along with some surprising facts and figures. With prospects for all, we were keen to show there is more to haulage than just trucks and drivers!

UK haulage industry – Did you know?
• The UK haulage industry is worth £74 billion
• It is the UK’s fifth largest industry
• It has 498,000 trucks
• It employs 1.8 million people
• 600,000 of those are HGV drivers
• Trucks carry 85% of the UK’s goods
• By 2022, the UK’s logistics industry needs to recruit another 1.2 million people

New logistics blood needed
It is not surprising that 92% of the people who work in UK haulage are men, which means only 8% are women. Moreover, only 1% of the UK’s 600,000 HGV drivers are under 25! We need to act now to address the skills shortage as well as the lack of females and young people in the industry. This is important as the lack of skilled workers directly impacts our business now and in the future.

I’m leaving school this year…how do I start a career in logistics?
There are many ways you can start your logistics career such as:

• Government Trailblazer Apprentice Scheme. This is a new scheme with guaranteed training, assessments and certified qualifications as well as a proper job.
• Internships
• Graduate Schemes
• University Degree Courses
• School Advisors
• Speak to Ben or Gina at Anglia Freight on 01379 872872

What great feedback!
‘Both Gina and I were very impressed with all those who attended both in their behaviour and the way they engaged with the discussion. Their questions were considered and articulated in a way that many adults would be pleased with. All of the pupils were a credit to themselves, their teachers and the school and we would be delighted to attend the same week next year and any other career-based activities the High School run.’ – Ben Moulton

‘Many thanks for coming to school and helping to make careers week a success. I very much enjoyed your presentation and it helps me to gain a better understanding of this sector. One of the boys who attended tells me that he wants to work in haulage and I’m sure that it opened the eyes of other students to the potential opportunities that are available. I’m sure that I will get back in touch with you as we run an enterprise day in the summer term that involves working out costs etc for transporting goods to France. We have business mentors come in for the day, so somebody with knowledge of logistics would be very useful. I will pass the message onto the students.’ – Kevin Voller

What’s next?
Anglia Freight is looking to get involved with future activities not only with Debenham High School but with other schools too. If you’d like Gina and Ben to come along and feature in your school’s career activity, please call Anglia Freight on 01379 872872.

Doug Shawcross, MD of Anglia Freight shares his thoughts on 2017 and what he thinks 2018 has in store for Anglia Freight and the logistics industry.

Was 2017 a good year for Anglia Freight?
Anglia Freight enjoyed another year of impressive growth with company turnover up 22% for the third year running. We have welcomed on board several significant new customers and have enjoyed seeing our existing customers grow from strength to strength. With this we have also welcomed seven new positions into the company, ranging from additional drivers to strengthening our Customer Service and Transport teams.

What were the highs?
One of the highs would have to be winning the Palletline ‘Service Award’ as part of Palletline’s 25th Anniversary celebrations earlier in the year. We’ve also successfully rolled out our Anglia Freight Vision and Values, which have been positively embraced and integrated by the team. You can find out more by visiting our ‘About Us‘ page on our website.

What were the lows?
We’d been itching to get our Vision and Values presented to staff and it was frustrating that this took a while to get right. However, we’re glad we did it in the end, it just meant we had to sit on our hands for a bit!

Any challenges?
Like many other hauliers we’ve spoken to, there are some industry challenges around fuel price increases, skilled staff shortages and uncertain economic times. On the whole, we’ve dealt with these quite well by improving efficiencies and working as a team to ensure ‘it’s business as usual’ for our customers. We did find the beginning of 2017 sluggish, which seemed to reflect the nervous ‘wait and see’ mood of the country at the time. Luckily, this didn’t last long and as soon as things started hotting up and got going, we’ve not looked back since.

What top 3 things did you learn as a business?

1. We exist to realise and inspire potential to enrich people’s lives. This sentiment is now part of our Vision and Values.
2. We know that we deliver exceptional customer service, but it was great to have this validated by winning the Palletline ‘Service Award’. We must be doing something right!
3. We have outstanding people working for us that have thrived under the challenging conditions presented by our growth. I would like to thank the staff who showed enormous dedication when there quite literally seemed to be not enough hours in the day but somehow made it happen.

What are you going to do better?
We have some big plans to ensure our customers continue to get the best customer service and highest service levels in our industry. All we can say is…watch this space!

In 3 words, sum up what 2017 meant for Anglia Freight
1. Growth
2. Determination
3. Teamwork

What are the top 3 big things happening for Anglia Freight in 2018?
1. It’s our 25th Anniversary! We are sure to be celebrating in style!
2. We are currently working on some very exciting IT improvements with our Palletline network and other providers that will enhance efficiencies and ensure peace of mind for our customers.
3. With buoyant volumes expected to continue, we will carry on resourcing and enhancing our processes to keep continuity and service levels high.

What do you think will be the challenges for Anglia Freight in 2018?
There is still uncertainty over the BREXIT negotiations, so we’ll see where these go. However, the biggest challenge is going to be recruiting the right skilled staff and ensuring we can help them progress their careers for the future.

What are the big things to look out for within the freight industry?
With Innovation at the forefront of our mind, we are always keen to look out for new technology that could help improve our processes as well as where progress within the industry is headed.

Give me 3 words that illustrate what we will see from Anglia Freight in 2018
1. Celebrations
2. Loyalty
3. (Exceptional) Service!

December’s blog is from our very own Pete Holden who has given us an insight into what it’s like being Depot Principal for both Palletline and Hazchem. He shares his thoughts on what its like to be on the inside of both organisations as well as being the Network Director for Anglia Freight. You are Depot Principal for both Palletline and Hazchem, but what does this mean? It means taking overall responsibility for my teams’ actions in terms of service delivery, making sure we can deliver on what we say we will. It is also a more customer facing role, regularly contacting customers as well as members of the Hazchem and Palletline networks. Why did you get involved? I am incredibly passionate about collaborative logistics and that’s why I got involved. Being able to assist and action the passing of freight between partners, overnight, to achieve an overarching goal, while playing the part of customer and supplier, excites me hugely. My background means that I’m well versed in various network freight roles. Following on from Anglia Freight’s recent succession planning exercise, where we shaped the ‘next generation’ Board of Directors, this naturally lead to me taking on the mantle from our founder, Geoff Moulton. Describe your role as Depot Principal and what’s the best thing about it? Ultimately, I deal with matters that are escalated directly to me for resolution, but as the team we’ve created is so strong, this means that this is a rare occurrence. We work well together and are united towards a common goal as well as building relationships with other depots. It’s also our aim to allow our teams complete autonomy for decision making on a day to day basis. The best thing about it? That would have to be working with like-minded, regional, family run logistics businesses within the UK and Europe which includes all staff at Anglia Freight and key customers and staff at Palletline and Hazchem. What sort of things do you get involved in? I usually get involved when my team needs support to navigate through challenging issues and situations. I also get involved when we have to quote and move unusual sized freight, or freight that needs to be transported to tricky locations such as boats, to the top of tower blocks, or high-security sites. In particular, we were involved in transporting bottled water to the Olympic stadiums during the London 2012 Olympics. This came with its own challenges including high levels of security authorisation and we delivered a lot of freight in and around London at night to avoid congestion. What do you think will be the big news and challenges for Palletline & Hazchem in 2018 and how will this affect Anglia Freight? We have a new Palletline regional hub opening in Q2 of 2018 and we’ll have a new central Hazchem hub opening in Hinckley in 2019. This will add capacity and operational efficiencies to our business by allowing more freight to be handled in a shorter period of time. It effectively gives Anglia Freight more flexibility and headroom. The main challenges will relate to increasing fuel costs and staffing as we may see UK foreign workers returning to their countries of origin as a result of Brexit. This will affect our customers because we pass on fuel variations via a price linked mechanism and we rely on both UK and European drivers to pilot our fleet.

We published our first Brexit blog, back on the 29th June 2016,  a few days after the EU Referendum had taken place and the UK had voted to leave the European Union.  So, what’s happened since then?

Article 50 has been Activated

Article 50 is the formal legal process by which the UK will leave the EU.  Part of the Lisbon Treaty, formed in 2009, Article 50 details a five-step process which is put in place if any country wishes to leave the European Union.  Prime Minister Theresa May triggered Article 50 on the 29th March 2017.  It allows for two years of negotiations to take place between the UK and the EU to agree on exit terms which the remaining 27 members states vote to approve.

If an agreement is not reached, negotiating times could be extended, but for the moment, the UK is scheduled to leave the EU on Friday, 29th March 2019, with an exit deal agreed and all existing trade agreements ceasing to apply.

Brexit options and possible outcomes

Four months since negotiations started,  mixed messages continue to circulate about what Brexit means for us, our customers and the entire UK logistics and supply chain industry.  Even if the UK and the EU agree to replicate a trade agreement similar to those it has with Switzerland, Norway or Turkey, (none of which satisfy the UK’s trade requirements), 18 months is not long enough to implement a Free Trade Agreement (FTA).  This leaves the UK with two options:

Option 1 – ‘Hard Brexit’:

  • Here, the UK is free to broker its own worldwide trade agreements. However, as of 30th March 2019, all UK imports and exports will be subject to the World Trade Organisation’s (WTO) most favoured nation tariffs.  In other words, imports and exports will become more expensive.
  • Free Trade Agreements will also need to be negotiated with each country individually, but even the most simple FTAs take a minimum of five years to agree and adopt. With the UK being a much smaller country than some of our EU counterparts, it will not have the same negotiating power with larger countries such as China and the USA.

Option 2 – ‘Soft Brexit’:

  • Here, the UK would need to agree on a Transitional Arrangement with other EU countries. i.e. a ‘copy and paste’ of current EU legislation into UK law. This would allow the UK to continue to trade freely with the EU and its partners while allowing more time to broker a full trade deal with the EU and the rest of the world.
  • The issue with soft Brexit is that it prolongs everything. Not only is it feared that this would damage UK businesses, but it could cause more multinationals to relocate their businesses  The UK will no longer have a voice in the EU so it will be forced to abide by legislation without having any voting rights.

Impacts of Brexit upon Imports and Exports

So, what happens when the UK leaves the EU?  We’re hoping that the UK government will negotiate a good deal for both the importing and exporting of goods into the EU. However, there are some real impacts worth considering when our ‘new’ UK border is in place.

Currently…

  • Lots of European businesses move goods in free circulation throughout the EU, e. they have been subjected to the payment of VAT and duty in the country into which they entered Europe.
  • The subsequent sale and movement of these goods requires no checks and with minimal paperwork, only small delays and negligible border issues result.
  • The EU allows for periodic reporting of these movements via Intrastat. These VAT & EU sales reports allow for the combination of all individual shipment reports, which is far more efficient than having to submit a report for each.

 Once the UK leaves the EU…

  • All movement of goods will immediately become genuine imports and exports and will be subject to border checks and will require full import/export declarations. This drain on business administrative resources could have severe implications on their performance and profitability by adding time and cost to the supply chain.
  • Increased border inspections and import clearance requirements will slow up the transition time of goods as they pass through ports and borders, creating delays and disruption.
  • The administration costs for the importer will increase as additional documentation containing full fiscal details of the shipment will need to be submitted at the time of import.
  • Submitting a complete declaration into HMRC’s customs system, CHIEF will increase the cost of submissions as forwarders and agents will also have to charge for their time.
  • Manufacturing industries such as the motor trade could be severely affected by the imposition of taxes. They currently move parts and finished goods freely throughout the EU, but without an FTA, could attract a duty of up to 10%.

Top 3 Actions To Get Brexit Ready

The EU will not agree to the UK remaining in the Customs Union without being a full member of the EU,  so having triggered Article 50 this is not an option open to the UK.  It looks likely that post-Brexit the UK will adopt the EU customs legislation, the Union Customs Code (UCC), which came into force in May 2016.

Whatever Brexit option is agreed, the following three key actions will help you get Brexit-ready.  They are guaranteed to help you save costs, give you a competitive edge and allow your goods to fast-track through the new UK border.

Action 1 – Review your supply chain now

  • Start talking to your customers, suppliers, forwarders and agents. Map out and fully understand how your goods are currently moved from supplier to end user.
  • Study your supply chain. Businesses that currently import or export outside the EU will probably have processes and procedures in place to manage VAT and duty payments on import. However, the terms of Brexit may affect your ability to import or export duty-free.
  • Ask suppliers about the origin of your goods, i.e. the “economic” nationality of goods. Having proof of origin is imperative to claim any reduction in duty. If you buy or sell from any of the countries that the EU has agreements with then your sale or purchase could be affected by the terms of Brexit.  Companies that currently only trade with the EU27 group of countries, i.e. have ‘Intra EU movements’ will need to start talking to their suppliers, forwarders and agents to ensure that they can perform the necessary export/import requirements.  You must also have a system in place to cope with the payment of any taxes that may be due.
  • Check out the list of EU countries.

Action 2 – Review your existing and new contracts

  • Review both your current and new contracts with your customers and suppliers and agree on sensible Incoterms®2010 rules which will ensure that you mitigate risks and minimise transit costs.
  • Check out the map EU trade agreements.
  • Check you have the correct terms in place. Having the incorrect terms in place could result in your business losing margin from unexpected transit costs or if goods are lost or damaged, resulting in insurance disputes and unforeseen expenses to put things right.

Action 3 – Review and update your internal processes and procedures

  • Apply for customs authorisations and simplifications like AEO, Customs Warehousing and Inward & Outward Processing Reliefs now. They are all dependant on your activities but could help you mitigate import and export costs and reduce risk.

How We Can Help

  • Don’t leave the above actions on your to-do list!
  • Anglia Freight works closely with Import Export Support, a local company that helps and advises us on Brexit issues. They are also able to step in and provide some Brexit advice for you.  They have extensive experience in dealing with international trade and HMRC, working with companies on their authorisations and procedures to help smooth out the ripples in the supply chain and to reduce the cost of moving stock around the globe.   They have submitted several successful duty reclaims, set up a customs warehouse, gained customs simplifications and work closely with HMRC on improving import compliance for their clients.
  • Call us on 01379 872872 or check out angliafreight.co.uk.
  • Call Tracey Renshaw at Import Export Support on 07710 238113

Finally, a huge thank you to Tracey Renshaw at IES, who provided us with the very latest information to help us make this blog as informative and useful as possible.