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Logistics UK calls for investment in trade and borders to make UK great again
Logistics UK's Policy Director Kevin Green says the UK’s Trade Strategy needs to deliver investment in an efficiently functioning border to support the nation’s trade in goods if the economy is to grow and flourish.
Speaking after the organisation submitted the sector’s priorities to the UK Treasury for consideration as part of the upcoming government Spending Review, Green was adamant that investment in the nation’s borders would help to build trade and drive growth, and urged the government to take action:
“Nothing in the economy moves without logistics,” he said, “but at present our member businesses – which move and deliver all the goods the country needs, every day – are being let down by delays and disruption at the border which hinder the nation’s supply chain from operating effectively.
"Our industry needs and deserves to be able to operate unencumbered by bureaucracy and traffic congestion to deliver for the economy.
“We are urging government to develop, thoroughly test and introduce a Single Trade Window (STW) for the UK. In effect this would enable a one border portal which would align with international systems, to remove the bureaucratic and cost burden that businesses now face as a result of the UK’s departure from the EU.
"Trade bureaucracy and related traffic congestion are adding time, cost and inconvenience to every transaction, dissuading British businesses from exporting their products, making it harder for them to secure their supply chains and, overall, making this country a less appealing place to do business in and trade with.”
As Green continues, despite the financial constraints currently faced by government, the development of the Single Trade Window cannot be delayed if the benefits of goods trade are to be felt across the whole economy.
“We are all aware of the fiscal pressures faced by the government, but to suspend work on the STW as happened in November 2024 is a false economy in the eyes of our members. The government has acknowledged that border friction with the EU is holding the economy back, and needs to do something about it. Britain has always been a trading nation, and relies on the swift and smooth movement of everything from food and medicines to advanced manufactured products to keep the economy buoyant.
"However, research by MDS Transmodal has shown that the UK’s importance for the EU as a trading partner has already dropped between 2017 and 2022, and the country now exports less to our nearest neighbours compared with other countries that export to the EU.
“Delays at the border, including customs inspections and charges, have also made a significant contribution to the UK’s decline in the World Bank’s Logistics Performance Index (LPI), which shows the nation has dropped from fourth in 2014 to 19th in 2023. With inefficient border processes and lack of timely deliveries reducing confidence and commitment to our sector, it is beholden on the government to stem this decline and invest in border infrastructure to ensure that our industry can continue to drive the recovery of the UK’s businesses, and the economy as a whole.”
Border processes is just one of the areas outlined by Logistics UK in its submission to the UK Treasury ahead of the government’s Spending Review which, according to logistics businesses, needs urgent investment if the country’s trade is to flourish and grow: “For too long, our sector has been hamstrung by a lack of investment which has seen our domestic infrastructure crumble and focus on the next generation of the workforce stall.
"We appreciate that there are many difficult spending decisions to be made, but if the government is serious about getting growth going again, it is vital that the asks of our members are prioritised. Without this, we will struggle to help galvanise and grow the economy as our members believe we can.”
Published On: 13/02/2025 15:53:27
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News In Brief
DP World welcomes first Gemini ship
DP World Southampton has welcomed MV Leonidio, the first vessel to arrive under the Gemini Cooperation, a partnership between shipping giants Maersk and Hapag-Lloyd aimed at improving east-west shipping network reliability.
The vessel arrived at Southampton on 3 February as part of its first rotation on the Gemini Transatlantic AL1/AT3 service. After departing Southampton, it will call at Rotterdam, Hamburg and Wilhelmshaven in Europe before crossing the Atlantic to reach New York, Philadelphia, Baltimore, and Saint John in North America.
First announced in January 2024, the Gemini Cooperation will strengthen schedule reliability by reducing port calls in mainliner services and implementing a hub-and-spoke network design to make supply chains more efficient.
The collaboration will eventually involve around 340 vessels, forming a shared Maersk-Hapag-Lloyd ocean network.
According to Gary Jeffreys, Managing Director of Maersk UK & Ireland, the launch of the Gemini ocean network follows over a year of planning and preparation. He stated that logistics must adapt to challenges like geopolitical tensions and climate change, adding that partnerships with terminal operators like DP World will help improve schedule reliability.
Cameron Bowie, Managing Director of Hapag-Lloyd UK & Ireland, said: “The cooperation’s goal is to achieve over 90% schedule reliability by summer 2025. Success depends on more than just ships and schedules - it also relies on strong partnerships with ports and terminals.”
DP World’s London Gateway will now handle all Middle East-Europe and Asia-Europe services as part of the Gemini Cooperation, while transatlantic services will continue at Southampton. The first vessel on the Asia-Europe route is expected to arrive at London Gateway in the coming weeks.
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