It’s been a busy few years for the freight industry, to say the least! What with the minefield of Brexit, suspension of the HGV levy, driver shortages, fuel costs rising and supply chain disruptions.
With that being said, we’re hoping the next few years will be more settled with fewer changes. Nonetheless, it’s important to stay ahead of any shifts in the industry to avoid unexpected costs and provide a seamless service.
So what can we expect to change over the next 12 months for the logistics industry? Here’s everything you need to know…
HGV Levy To Resume In August
The HGV levy has been in place since 2014 for vehicles with GWV (gross weight vehicle) of 12 tonnes or more. But the UK government temporarily suspended it in 2020 until August 2023. With the recommencement date now less than a year away, this is something we need to be prepared for.
However, the HGV levy might be reintroduced with changes to its format based on a vehicle’s environmental performance. The currently suspended levy has no less than 11 payment bands, each of which is divided into two categories depending on the HGVs emission class!
So can we expect fewer or more classifications to work with? And will we pay more in the future?
The Department for Transport suggests most of us will pay the same or less than we were before the levy was suspended. The new format is supposed to be simpler, with fewer bands based only on vehicle weight and pollutants (based on EURO emissions). The new-look levy will allegedly scrap vehicle type and the number of axles, making it a straightforward system.
Yet with simpler bands comes a greater range. Current proposals suggest you could be paying anywhere from £150 to £749 depending on the vehicle weight and pollutants.
Carbon Regulation Changes
As of 1 January 2023, there’s going to be an increased focus on cutting carbon within the shipping industry.
New legislation is coming into force from a few regulators, including the Energy Efficiency Existing Ship Index (EEXI), the Carbon Intensity Indicator (CII) and the European Unions Emissions Trading System.
All are asking existing ships on the water to improve their carbon footprint – to significantly cut down greenhouse gas emissions in order to decarbonise the shipping industry.
How is this going to be possible?
It will take a multifaceted approach: reducing speed, upgrading vessels or buying emissions credits are all possible ways to make it happen. It’s also evident that all parties involved must work closely together to comply with the new carbon regulations and provide the same streamlined shipping service.
It’s not yet clear who will be responsible for providing emissions data or how costs will be apportioned. The point of the new legislation is to make the polluter pay in order to encourage eco-friendly operations.
The Global Supply Chain Chaos – What’s The Forecast For 2023?
It’s been an incredibly tough few years with the global supply chain at times in tatters. Is the chaos likely to settle soon, or is it set to continue for the foreseeable?
Unfortunately, we’re not out of the woods yet. Ongoing disruptions are occurring across the world that will have a knock-on effect for some time to come.
The Covid situation in China has the world’s largest container port still closed, and the backlog is expected to be immense. On top of that, there is continued congestion on the US West Coast and possible labour disputes as new contracts are negotiated.
Plus, the supply chain will likely remain disorganised with increasing strikes worldwide over work and pay conditions as economies struggle and a lack of new container tonnage.
We’re hoping 2023 will see improvements in some areas and the interruptions will be fewer than we’ve experienced in 2022. However, planning for disruptions for at least another 12 months is wise.
Border Control
Post-Brexit there have been many changes to contend with in the logistics industry, some of which are still being realised.
Export requirements have been in place for all movements, unless otherwise exempt, since 1 October 2021. But import requirements have been held back. This is set to change over the next 12 months.
As Great Britain is no longer part of a safety and security zone with the EU, new safety and security requirements need to be implemented for goods entering Great Britain.
The import requirements were originally meant to have been put in place from 1 July 2022 but were waivered. The government is set to publish the new target operating model of border controls in Autumn 2022. The aim is to introduce the new regime sometime around the end of 2023.
With these new stipulations still up in the air, this is another change to be aware of.
Feeling Lost With It All?
With a tumultuous few years behind us and an uncertain future ahead, it can feel like a challenge to keep up with the logistics industry’s myriad of changes.
You’re undoubtedly tired and a bit fed up with adjusting to new regimes and planning for fresh legislation. But the best way to handle the chaos is to be as prepared as possible, for at least the known changes, and if possible, for the surprises too.
Are you still feeling overwhelmed and confused about the coming changes to the logistics industry? Or apprehensive about potential disruptions to your business?
Get in touch with our knowledgeable family-run team for expert advice. With more than 100 years of combined experience, we’ve shipped and driven through plenty of chaos before and can help you do the same!