Affected by the return of border controls, French companies trading with the United Kingdom have seen their transport costs jump since January 1.
A week after the entry into force of the trade agreement between London and Brussels, companies are facing the first direct consequences of Brexit. Because the reestablishment of border controls on January 1 inevitably makes trade less competitive. Grains of sand which have notably entered the machine of French professionals who export and import to the United Kingdom.
A rising cost of transport
This is particularly true in the spirits market, with Scotland being a major exporter of whiskey. With the friction at the border, the supply of French retailers is more difficult, explains to BFM Business the general manager of La maison du Whiskey, Jean-François Briand. For a bottle of Jura Seven Wood, it provides for a transport cost of 50 cents, or 10 cents more than last year.
It is the invoicing of our carriers. They will have more time spent on declarations (…), and their drivers will also take longer to cross the border with the production of customs documents. All this generates more time and time is money “, underlines Jean-François Briand.
“We are going to lose about 15% of our margin with Great Britain”
These administrative formalities will slow down France’s trade with the United Kingdom (50 billion euros, or 10% of French foreign trade) and weigh on British GDP and, more marginally, on European economies. London, for its part, expects a loss of 4 points in the long term compared to the scenario in which the United Kingdom would have remained in the EU.
The management of administrative procedures is also expensive for Pierre Ancel, logistics manager of Ekosport, a brand specializing in sports equipment. Because even if the trucks are no longer blocked at the border, its orders to the United Kingdom have already been halved. Blame it on the cost of the end of free movement.
In general, there will be between 10 and 20 euros extra per order, which is very important for the customer. We will lose about 15% of the margin we make on sales with Great Britain, and we will not be able to charge everything to the customer, otherwise we will be too expensive and they will not buy, “concludes Pierre. Ancel.
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