Skip to content. | Skip to navigation

Personal tools
You are here: Home Focus Post-Brexit: Will Package Pricing and Delivery Costs Rise?

Post-Brexit: Will Package Pricing and Delivery Costs Rise?

02 November 2017, 13:32 CET

For better or worse, Brexit has undoubtedly caused great unrest in the European Union, from social politics to muddled trade deals. Moreover, as the UK attempts to ease off the economic uncertainty with some ironed out pacts, other parties in the negotiations are attempting to do the same.

UK flag

Recent studies suggest no fewer than 105 countries want better trade with the UK, leaving plenty of room for negotiation and deliberation. There is much to map out logistically and formulate into a coherent plan, but despite the chaos, many countries for the time being are adopting a productive and positive approach to the proceedings and are focused on moving forward. Content to construct a solid post-Brexit plan, what began as initial chaos is now affording opportunity for countries and their businesses.

The Cost of Movement

Up and down the country, young adults have lamented that the price of travel will rise with nationwide inflation, as well as remove their rights to work abroad and engage with different cultures. Alongside the Brexit induced weaker pound and higher airfares, ferrying people from one country to another will gradually grow more and more restricted in the UK. Ultimately, this begs the question; if free movement is in cost crisis for people, what will it be like for parcels and packages?

Ultimately, with the UK fighting to secure a beneficial trade deal with France, any such agreement will affect the logistics of pricing between them. Package pricing and delivery costs will no doubt rise so long as there is a stand-off state of limbo between the two countries. Higher taxation and customs charges are all to be expected as the loss of time equates to loss of money, leaving importing and exporting goods between the countries complicated moving forward. However, is it remediable?

Distributing to France

France seems reachable for many UK businesses, who may opt to cut out their Brexit woes entirely. After all, numerous companies based in the UK are considering switching their business premises to France altogether, following suit from foreign companies such as Apple and Microsoft who were established on British soil. Of course, this obviously cancels out their woes of parcel pricing completely, with businesses moving to wherever the better prospects are and eradicating their need for overseas trade in the UK.

However, geographically speaking, France is the closest country to the UK, meaning that the logistics of trade should theoretically be among the simplest in Brexit trade deals. While the prices of travel, vehicle maintenance for couriers, and fuel will inevitably rise, France is simply easy to get to! If nothing else, this stroke of luck provides a more accessible scope for the following proceedings, as the country can be reached in a matter of hours by both air, land (technically the channel tunnel) and sea. No doubt this will minimalize costs when compared to countries deeper in the European landscape, who cost more to reach with every second heavy goods vehicles are out on the road.

Finding the Fix

In the end, the feeling of connection is key. Brexit has incited an image of isolation, one that overseas distribution can feasibly fix to a degree. After all, the whole marketed selling point of courier services is connectivity!

Therefore, sending parcels to France must adopt a simpler method to combat this possible business abandonment, with individual courier companies affording ways to minimise any price rise impact. As a business model, delivery firms may be more inclined to focus on France for opportunity, given their location and limited resources to engage with wider Europe.

When there is economic instability and opportunities are in flux, the business that provides a rooted control of their company will no doubt persevere. TNT the courier service, who can get anywhere and everywhere at any time of day and provide that essence of stability customers crave. Ultimately, such companies are more than capable of surviving the temporary Brexit draught between the UK and France, one that surely fixes itself.

Document Actions
EU Alerts

EUbusiness Week no. 809
2017 bolsters EU resolve
→ EUbusiness Week archive

The Week Ahead no. 377
Bulgaria Presidency priorities - cleaner energy package - overhaul of fisheries technical measures

Subscription options