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“When it comes to Brexit, many companies have their head in the sand”

The Brexit is complete and the transition phase will be history in a few weeks. No matter what agreements the EU and Great Britain may reach in the short term, January 1, 2021 will mean a deep cut for the movement of goods to and from Great Britain. Steffen Wiese, Head of Sales, European Logistics, North Central Europe at DACHSER, explains what companies urgently need to bear in mind and some even run the risk of oversleeping the preparations.

Would you say it’s still possible to avoid a hard, no-deal Brexit? How would a hard Brexit affect goods transport involving the UK?

There’s still a chance that a deal could be agreed. But the closer we get to the deadline, the less hope there is. DACHSER is definitely readying itself and its customers for a hard Brexit to ensure we’re prepared for all eventualities.

Post-Brexit customs clearance will make transporting goods vastly more complicated, expensive, and time-consuming. We expect a hard Brexit to majorly disrupt transports, especially at the beginning of next year. We’re noticing that some companies have already taken action and have moved operations to locations with the EU. In light of new customs clearance procedures, some business models are no longer very practical and will have to be revised. B2C shipments will become more expensive, even if simpler procedures are introduced for goods of up to a certain value. It just won’t be worth it for many senders. Since shipping times and costs for supplying the European market from the UK will also increase, many senders have already moved their distribution centers to the EU.

Are companies, including DACHSER customers, in Germany and the rest of Europe prepared? Where do you see room for improvement?

In addition to the well prepared companies, there are also quite a few that still need to take urgent action. They’ve waited too long, which will lead to problems—at the latest starting January 1. This holds especially true for companies that have up to now exclusively served the European domestic market, as they often lack the requisite customs expertise.

Many companies actually expect that a deal will mean everything remains as it is. What’s more, the Covid-19 pandemic has largely eclipsed Brexit as a topic in the public eye as well as at many companies.

But it’s important to know that no matter what happens on the political stage over the coming days and weeks, customs clearance will definitely be a hot topic among senders and recipients of goods transported between the EU and the UK. This means that preparation is non-negotiable.

A more general question: What must a company intending to export goods to or import them from the UK as of January 1, 2021 take into account?

Senders first have to check the extent to which their supply chains are affected. Special attention must be paid to preparing the information and documents required for customs clearance so that we, in our role as logistics provider, can take care of the customs formalities relating to imports and exports. This information includes the EORI number. Moreover, obtaining customs authorization from the respective importer is essential for processing shipments to and from the UK. For this reason, we are asking our customers to notify their recipients that they must provide us with the importer’s name so we can request the necessary authorization.

DACHSER itself is well prepared to make future customs clearance for goods transports between the EU and the UK as smooth as possible. It’s now up to senders to once again check thoroughly that they have made all necessary preparations. On our website, we’ve published a checklist that allows our customers to see at a glance what they have to be aware of. And of course, DACHSER’s local contact persons are always ready to answer any questions.

It’s absolutely clear what the worst-case scenario would be: goods remain stuck with the sender and we are unable to collect them. The transport can start only once all the paperwork required for customs clearance has been made available. Starting January 1, there will be no transition period or exceptions and the paperwork cannot be submitted later. These are the conditions that logistics providers must now observe. In this worst-case scenario, customer warehouses would overflow as the goods remain where they are.

What specific preparations has DACHSER made as a logistics provider?

DACHSER has been preparing for Brexit for years now. We formed an internal project team made up of experts from all areas of the company. It’s this team’s job to address all aspects of Brexit—from customs clearance, volume monitoring, and traffic routing to IT, staffing, and communications.

To prepare for all eventualities, we’ve invested particularly in customs and created software solutions to help ensure customs processes are performed efficiently. As well as adding resources to our IT infrastructure, we’re making sure that DACHSER UK and DACHSER Ireland both have sufficient personnel—especially those trained in customs matters. On the mainland, our global logistics network provides us with ample expertise and resources. We’ve also formed an internal task force to support our colleagues in the UK and Ireland as well as our distribution platforms in the EU starting January 1, 2021. Task force members are being trained on how the various systems work so we can stem any additional costs, and our country organizations are working closely together to minimize any disruption. And because we have AEO status in the UK and in numerous EU countries, we can see to it that goods clear customs as quickly and seamlessly as possible.

What’s the situation in the Republic of Ireland? The majority of transports to and from Ireland pass through the Channel. Are there alternative routes?

There are bound to be obstacles when transporting goods to Ireland. But what’s particularly unclear is how things will work with Northern Ireland, which as we all know is a very political issue. There are alternative routes to Ireland and while all options involving ferry companies are being explored, these will ultimately lead to longer transit times.

After years of Brexit preparations, what lessons have you learned?

It’s all about staying flexible in the face of inevitable surprises, especially political ones. Personally, I hope that the nightmare scenarios predicting thousands of trucks stranded on each side of the Channel don’t come true and that the authorities also do their part to implement the process efficiently. I’m also curious to see how the economy develops and whether Brexit will scare other countries away from pursuing any desire to leave.

Latest update on DACHSER Air & Sea Logistics operations

With this update DACHSER would like to inform about the current DACHSER Air & Sea Logistics operations across the regions APAC, EMEA and Americas. In the attached document (see download below) it is listed whether a country organization of DACHSER is operational or, if only limited or not at all, why this is the case. Since the situation in the countries may change rapidly, the attached document will be updated on a regular basis and published on our website.

We sincerely regret any inconveniences caused to our customers due to the pandemic. At DACHSER, we have contingency measures in place and will offer our customers the best alternative solutions to keep the supply chain running. Anyhow, the situation at ports, airports or customs authorities might cause delays. Furthermore, the capacity situation on the global airfreight market is very tense as there are basically no passenger flights operating at the moment.

At the same time, DACHSER has installed strict hygiene measures (e.g. home office) to ensure a safe working environment and to do our part in stopping the spread of the virus. DACHSER is trying to keep the impact of these measures as low as possible, however, together with the official measures by the governments, the precautions may lead to some delays in the operations.

In case of any questions and/or queries, please feel free to contact your local DACHSER representative.

Safeguarding the supply chain: A guide to transporting dangerous goods

In the intricate world of logistics, the transport of dangerous goods poses unique challenges that require specialised expertise and robust safety measures. These goods, encompassing a variety of materials such as chemicals, batteries, and fertilisers, demand meticulous handling to prevent risks to people, property, and the environment. Dachser South Africa has extensive experience in handling hazardous materials, including batteries and fertilisers, with a steadfast commitment to safety and regulatory compliance.

Managing Director of DACHSER South Africa, Detlev Duve, emphasises the importance of meticulous safety measures and adherence to international standards. "At Dachser, our priority is to ensure that all dangerous goods are transported safely and efficiently without compromising on quality or safety," says Duve. "Our teams are trained to manage the complexities of these shipments, adhering to the strictest compliance protocols."

Transporting dangerous goods involves navigating a complex landscape of regulations, safety concerns, and logistical hurdles. Duve outlines key considerations:

Regulatory compliance: Logistics companies must adhere to stringent international, national, and local regulations. This includes compliance with frameworks like the International Maritime Dangerous Goods (IMDG) Code and the IATA Dangerous Goods Regulations. Failure to comply can result in severe penalties and safety incidents.

Proper handling and packaging: Dangerous goods require specialised packaging that prevents leaks, spills, and other hazards. Handling these materials demands trained personnel equipped with the knowledge to manage risks effectively.

Complex supply chains: The logistics of dangerous goods often involve multi-modal transport, utilising road, air, and sea freight. Coordinating these modes while maintaining safety standards adds another layer of complexity.

Specialised training: Regular training programs ensure that employees are well-versed in handling hazardous materials and responding to emergencies.

Advanced technology: The use of real-time tracking systems allows for continuous monitoring of dangerous goods, enhancing both security and efficiency.

Emergency preparedness: Comprehensive emergency response plans and partnerships with local authorities are crucial for swift action in case of an incident.

DACHSER South Africa's operations are aligned with key frameworks such as the International Maritime Dangerous Goods (IMDG) Code and the IATA Dangerous Goods Regulations, ensuring rigorous compliance across all levels. Duve highlights the company's strategic approach to managing hazardous materials: "Our specialised teams are equipped with the knowledge and tools necessary to handle dangerous goods at every stage of transport. From proper labelling and packaging to leveraging advanced technology for real-time tracking, we leave no stone unturned in our pursuit of operational excellence."

The company has invested in state-of-the-art infrastructure and equipment as part of its commitment to safety. Warehousing facilities and vehicles are designed to accommodate the specific needs of hazardous materials, ensuring they are stored and transported in optimal conditions.

"Goods such as fertilizers and batteries require specialised knowledge and infrastructure to ensure their safe and efficient transport," says Duve. "For fertilisers, we must adeptly manage multi-modal transport systems, often combining road, rail, and sea routes to reach remote agricultural areas. This requires meticulous planning and coordination to ensure timely and efficient delivery. Regulatory compliance is another critical consideration, as the movement of fertilisers is subject to stringent safety and environmental standards across different countries."

Shipping lithium batteries involves strict regulations to ensure their safe transport and minimise fire or explosion risks. These rules define packaging type, labelling, documentation, and handling requirements. As Detlev Duve highlights, "Proper packaging is crucial for safety, requiring lithium batteries to be packed in strong, rigid outer packaging to resist damage. Packages must also feature specific labels to identify the battery type and associated risks. "Safety relies on clear communication and proper handling."

In addition to robust internal protocols, DACHSER South Africa maintains comprehensive emergency response plans and collaborates closely with local authorities to ensure rapid action in case of an incident.

As logistics continue to evolve, companies like DACHSER are paving the way for safer and more efficient transport of hazardous materials. "Our focus remains on setting benchmarks for safety and efficiency. We are proud to contribute to global supply chains, ensuring that even the most challenging shipments reach their destination safely," Duve says.

Best practices guide for transporting dangerous goods
Detlev Duve, Managing Director of Dachser South Africa

The transport of dangerous goods is a critical component of global logistics, demanding precision, expertise, and unwavering adherence to safety protocols. Transporting goods such as chemicals, fertiliser and batteries requires meticulous planning and execution to ensure safety and compliance. This guide outlines essential best practices that logistics companies should adopt to manage hazardous materials effectively.

1. Regulatory compliance

Adherence to regulations: Ensure compliance with international, national, and local regulations such as the International Maritime Dangerous Goods (IMDG) Code, ADR for road transport, and IATA Dangerous Goods Regulations for air transport.

Licensing and permits: Obtain necessary permits and licences for handling and transporting dangerous goods across different regions.

2. Proper labelling and documentation

Accurate labelling: Use standardised labels and placards that clearly identify the type of hazardous material being transported. This includes UN numbers and hazard class symbols.

Comprehensive documentation: Prepare detailed shipping documents, including Material Safety Data Sheets (MSDS), transport manifests, and emergency contact information.

3. Employee training

Specialised training programmes: Implement regular training for employees involved in the handling and transportation of dangerous goods. Training should cover identification, handling procedures, and emergency response.

Certification: Ensure that personnel are certified to handle specific classes of dangerous goods, as required by regulations.

4. Use of appropriate packaging

Certified containers: Utilise packaging materials and containers that meet or exceed the standards set by regulatory bodies for the specific type of hazardous material.

Integrity checks: Conduct regular checks on containers to ensure they are free of leaks, damage, or deterioration.

5. Emergency response planning

Comprehensive plans: Develop and maintain updated emergency response plans that outline procedures for dealing with spills, leaks, or accidents involving dangerous goods.

Partnerships with emergency services: Collaborate with local emergency services and have clear communication channels for rapid response in case of an incident.

6. Regular audits and inspections

Internal audits: Conduct periodic internal audits to assess compliance with safety protocols and identify areas for improvement.

Third-party inspections: Engage independent experts to perform inspections and provide insights into best practices and emerging risks.

7. Adhering to international standards

Global best practices: Align company operations with international standards such as ISO 9001 for quality management and ISO 45001 for occupational health and safety.

Continuous improvement: Stay informed about updates to international standards and integrate changes promptly into company practices.

8. Leveraging technology

Real-time tracking: Implement GPS tracking systems to monitor the location and condition of dangerous goods throughout the supply chain.

Automated systems: Use automated systems for inventory management and compliance checks to minimise human error.

Implementing these best practices ensures that logistics companies can safely and efficiently transport dangerous goods while minimising risks to people, property, and the environment. By focusing on regulation, training, technology, and proactive planning, companies can enhance their operational standards and maintain a robust safety culture.

(ENDS)

About DACHSER:

Dachser, a family-owned company headquartered in Kempten, Germany, provides transport logistics, warehousing, and customized services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide. Thanks to some 37,300 employees at 433 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 8 billion in 2024. The same year, the logistics provider handled a total of 83.2 million shipments with a tonnage of 44.1 million metric tons. Country organizations represent Dachser in 43 countries. For more information about Dachser, please visit dachser.com