Brexit and Logistics: Navigating a Changed Supply Chain Landscape
Since the United Kingdom’s withdrawal from the European Union, logistics and supply chain operators have been on the frontline of change. Brexit has introduced new barriers to trade, increased operational complexity, and forced businesses to rethink their supply chain strategies. Combined with the lingering effects of the Covid-19 pandemic, the logistics sector has had to adapt quickly to an environment of uncertainty and disruption. This article explores the main ways Brexit has reshaped logistics: border delays, rising costs, workforce challenges, and how businesses are building resilience.
Border Delays and Customs Checks: The New Reality for Freight
The most tangible effect of Brexit has been the reintroduction of customs checks and additional paperwork at UK–EU borders. What was once frictionless trade within a single market has become a process marked by documentation, inspections, and regulatory divergence. These changes have not only extended transit times but also made delivery schedules less predictable, creating a ripple effect across supply chains.
According to Logistics UK, the trading relationship between the UK and the EU has suffered considerably since Brexit. Between 2017 and 2024, UK exports to the EU fell by 23%, from 106.4 million tonnes to 82.4 million tonnes, while imports declined by just 5% in the same period. This imbalance highlights how exporters particularly smaller businesses without dedicated customs teams have struggled to cope with the additional barriers. Sectors reliant on perishable goods, such as fruit, vegetables, and meat, have been especially exposed, with imports of these products falling by 12% and 5% respectively since 2017.
Phil Roe, President of Logistics UK, speaking at Multimodal 2025, stressed the urgent need for smoother border operations and called for a “swift implementation” of revisions to border checks agreed as part of the UK–EU reset summit. Without reforms, exporters risk continuing to face frictions that make UK goods less competitive in European markets.
Rising Costs: Tariffs, Duties, and Administrative Burdens
Brexit has significantly increased the cost of moving goods. Customs declarations, compliance checks, and the need for specialist staff all add administrative and financial burdens. For many businesses, particularly SMEs (Small to medium sized enterprise), these costs accumulate into a considerable strain on budgets.
The Office for Budget Responsibility reported that Britain’s economy had already shrunk by almost 1.5% before the UK formally departed the EU at the end of 2020. Since then, logistics operators have faced further pressures, with the value of goods imports falling by £1.7 billion (3.4%) in June 2025, while exports declined by £1.9 billion (6.3%) over the same period. These figures underscore the fragility of the UK’s trading position and the mounting costs of doing business across borders.
Phil Roe also noted that customs expertise is no longer confined to intermediaries or large exporters. Importers themselves now require in-house customs professionals to ensure compliance, adding further to staffing and training costs. The skills gap in this area highlights how Brexit has reshaped the very nature of roles within logistics, making regulatory knowledge as essential as operational capability.
Driver Shortages and Workforce Challenges
Another critical issue is the availability of labour, particularly HGV drivers. Prior to Brexit, the UK relied heavily on EU nationals to fill driver and warehouse roles. Post-Brexit immigration rules have accelerated the loss of thousands of EU drivers, with an estimated 20,000 leaving the UK workforce. Combined with the disruption caused by the Covid-19 pandemic, this has deepened workforce shortages and left gaps that the domestic labour market has struggled to fill.
These shortages have created capacity constraints, driving up wages and, by extension, transport costs. The problem is not confined to drivers alone; logistics now faces a broader skills challenge. As Phil Roe of Logistics UK has highlighted, the sector requires staff not only for physical operations but also for managing complex customs processes.
There are signs of partial recovery. Logistics UK’s survey data shows that 36,000 more HGV drivers were employed in the final quarter of 2024 compared with the same period in 2023, with around 30,000 of these new recruits coming from within the UK. While this growth demonstrates the sector’s ability to attract and train domestic talent, it does not yet fully offset the structural loss of EU drivers or the widening skills gap across the industry.
The impact of these shortages is evident in the reduced resilience of supply chains. Delays, missed delivery windows, and limited haulage availability all affect the reliability businesses can offer their customers.
Supply Chain Resilience: How Businesses Are Adapting Post-Brexit
Despite these challenges, many businesses are finding ways to adapt and strengthen their supply chains. Strategies include nearshoring production to reduce reliance on cross-border trade, diversifying supplier bases to spread risk, and increasing stockholding to buffer against delays.
Some companies are investing in customs warehousing, which allows goods to be stored without immediately paying duties, offering flexibility in managing both costs and compliance. Others are digitising their supply chain operations, using technology to streamline customs processes, improve visibility, and anticipate disruptions more effectively.
While the UK’s exports to the EU have declined, imports have proven more resilient, suggesting that supply chains are capable of rebalancing. The upcoming implementation of revised border procedures, if carried out swiftly as Roe advocates, could provide much-needed relief by reducing frictions and restoring a degree of predictability to cross-border trade.
Brexit has fundamentally altered the logistics landscape, reshaping how goods move between the UK and the EU. Increased border delays, rising administrative costs, and workforce shortages have created lasting challenges for the industry. The statistics paint a stark picture: a 23% decline in exports to the EU since 2017, billions lost in trade value, and a growing demand for customs expertise across the sector.
Yet the story is not purely negative. Businesses are adapting, investing in resilience, and seeking out new ways to thrive in a post-Brexit environment. The road ahead will require cooperation between industry and policymakers, particularly in implementing smoother border systems. If achieved, the UK can begin to rebuild its position as a competitive trading partner, while logistics operators continue to evolve in a more complex global marketplace.