Export and freight in Northern Ireland: 2023 in review

By Nichola Mallon, Head of Trade and Devolved Policy at Logistics

In this article, Nichola Mallon, Head of Trade and Devolved Policy at Logistics UK, explores some of the key challenges faced, and progress made, over the past 12 months and looks ahead to what lies in store in 2024.  

POST-BREXIT TRADING ARRANGEMENTS  

At the end of February, the EU and UK announced the Windsor Framework – the agreement between the UK government and EU to ensure NI has full access to both UK and EU markets – to replace the NI Protocol. Ensuring the new agreement is implemented in a sensible, pragmatic and streamlined way that works for our members was a priority for Logistics UK in 2023 and remains so as we move into 2024, especially in advance of October 2024 when custom changes and the movement of parcels via the green lane take effect. Logistics is the backbone of the economy. It is an integral part of complex supply chains across these islands, and it must be allowed to operate efficiently, with the minimum of disruption or delays. That is why, among other asks, Logistics UK has been pressing for real world road testing of proposals with hauliers and logistics businesses ahead of implementation. Conversations with the government on these matters are ongoing.   

Looking ahead, the industry, north and south, is heading into a period of further transformation when it comes to customs, borders and trade. The UK government published its Border Target Operating Model (BTOM) in August, which is the framework to realise the ambition of the government’s 2025 Border Strategy. The aim? To create a world-class border system that protects against biosecurity threats and illegal imports while making it as easy as possible to do business and trade.  

Due to be implemented in stages from January 2024, the BTOM governs the new processes for importing goods – including fresh fruit and vegetables, dairy and meat products – into GB from the Republic of Ireland and other countries inside the EU post-Brexit. This means that from 31 January 2024 some goods will face full customs controls when moved directly from Irish ports to Great Britain.  

Britain and Ireland are key trading partners, and it is vital that changes to trading processes under the BTOM are designed to support this smooth flow of trade and minimise disruption. The model in its current draft does not provide this reassurance. More detail is needed, especially when it comes to ensuring unfettered access for Northern Ireland qualifying goods under the Windsor Framework.    

Logistics UK will continue to press for clarity on the urgent details logistics businesses need, as well as highlight the challenges surrounding the short timelines before implementation, given that adaptation of business operations and models, including developing, testing and operationalising new IT systems, can take a minimum of six to 12 months.   

With the Windsor Framework, new GB import controls on EU SPS goods and new safety and security controls planned on all imports, the logistics industry is treading a new path, and needs a solution which works both for logistics and the wider economy; this will continue to be a key focus for Logistics UK throughout 2024.  

ACCELERATING TOWARDS NET ZERO   

With Northern Ireland’s 2050 net zero emission deadline drawing closer, businesses are facing the challenge of maximising operational efficiencies while moving towards decarbonisation at pace.  

There are significant challenges right now, with the need to progress decarbonisation plans being held back for several reasons, including the current lack of a devolved government to make key decisions.  

While logistics businesses are working hard to decarbonise their operations, a lack of certainty and clear direction from the UK government is also hampering progress. This was highlighted in the autumn when the government announced its decision to delay the ban on the sale of new diesel and petrol cars and vans from 2030 to 2035. The UK government needs to earn business trust by providing certainty, and it needs to focus its attention on ensuring vital supporting infrastructure is in place, and that it is clear on the vehicles and technologies it is backing.   

Despite the work conducted by the industry and government to encourage new recruits into HGV driving, including the new driving apprenticeships, Skills Bootcamps and the industry’s successful Generation Logistics campaign, skills shortages continue in key roles in NI as in GB. Our members cite shortages in numbers of technicians and dual role drivers available to work, and recruitment for these careers must remain a priority in the next 12 months, to keep the supply chain moving efficiently.    

Logistics operations are complex, and as we enter 2024, there will continue to be opportunities and challenges for businesses to navigate: decarbonisation, workforce challenges, emerging technologies and post-Brexit trading arrangements will continue to be key areas of focus.   

Throughout 2023, Logistics UK worked with its members and the government on the key challenges facing logistics to achieve the best possible results for the sector; we will continue to do so in 2024 to support effective operations.   

Published On: 14/12/2023 15:30:00

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