Dutch logistics and warehousing companies are flooded with demands from UK companies seeking to rent warehousing space as the country experiences a Brexit boom in investment and employment.
Britain’s withdrawal from the EU put thousands of SMEs in jeopardy, and port delays and rising transportation costs disrupted exports to the continent. VAT, tariffs and, in some cases, tariffs have suddenly been added to cargo sent from the UK to customers in the block.
Many have no choice but to invest in distribution networks within the EU, and the Dutch logistics industry is enjoying the rewards.
Dutch logistics companies are flooded with calls for help, but the number of UK companies looking for locations in the country has doubled in the last 18 months, the Dutch Foreign Investment Authority (NFIA) said Tuesday. There is a list of over 500 global companies considering investing in the Netherlands for Brexit. Half of them are British companies.
Toy train maker Hornby and clothing retailer JD Sports are believed to be considering warehousing in the Netherlands.
Jochem Sanders, Business Development Manager of the Holland International Distribution Council, a non-profit organization that describes the Dutch logistics company as a “matchmaker,” said:
From December to January, Sanders said several UK companies contacted him each day, all looking for warehouse space, and expects the number of requests to continue.
“So far, we received requests from 25 UK companies in January and more than 30 requests in December, could you please contact a Dutch logistics company,” said Sanders.
According to Michiel Bakhuizen, a spokesman for NFIA, a government agency whose mission is to attract foreign investment, the number of companies looking for a base in the Netherlands has skyrocketed in recent months.
About half are UK companies, while the other half are from places like the US and Asia that want a foothold in the EU and refused to base in the UK after leaving the block.
By distributing from within the block, UK companies are targeting customers in 27 EU member states suffering from VAT, tariffs, and long-term port delays affecting cross-border trade since January 1. You can avoid it.
“Many companies are thinking of establishing a position in mainland Europe, and the Netherlands is one of the big hubs for that,” Bakhuzen said. “I’m pretty busy right now thanks to Brexit.”
Some of the country’s popularity can be linked to Europe’s largest ports, Rotterdam and Amsterdam Airport Schiphol.
However, the Dutch logistics department also boasts that it can reach customers everywhere in the EU within 24 hours, from Rome and Madrid to Stockholm and Warsaw.
So far, the EU, with 500 million consumers, remains the UK’s largest trading partner. According to official statistics, the UK will export £ 294 billion of goods and services to the block in 2019, accounting for 43% of UK trade. Hornby has reorganized its business. After a few weeks of hiatus, EU exports will resume and within a few weeks we will begin servicing European customers from a new warehouse based in mainland Europe.
Lyndon Davies, Chief Executive Officer, said: “We bring in 300-400 containers a year and ship them to warehouses in the US, Australia, New Zealand, South Africa and India, so we plan to consolidate them at our factories and possibly bring them directly to Europe.”
This move eliminates the need for European customers to pay higher shipping and VAT to receive goods ordered from the company’s website and tariffs on certain models.
Under the “Rules of Origin” outlined in the UK’s Brexit Agreement, products not manufactured in the UK, such as Hornby’s Chinese toys, will incur tariffs when re-exported from the UK to the European market.
Sportswear retailer JD Sports, which recorded sales of £ 1.6 billion in Europe in 2020, negotiates complex new rules given that many of the clothing and shoes it sells are imported from Asia. He says he is also considering a method. It was re-exported to the EU without being processed in the UK.
Retailers are currently looking at various EU countries, including Germany and the Netherlands, to find new warehouses to serve EU customers. SMEs have ways to prevent double tariff payments and EU customers receive their products. According to the Federation of Small and Medium Enterprises (FSB), about one-fifth of small and medium enterprises export abroad.
Brie Read, CEO of Snag Tights, a sock retailer based in Livingston, Scotland, decided that the company “couldn’t wait for Brexit’s decision” and began looking for an EU warehouse last July. It was.
The company, which sends 1,000 parcels (30% of orders) daily to Europe, leases a warehouse in Venlo, in the southeastern part of the Netherlands, near the German border.
“Everyone speaks English-and the links are great both north and south of Europe,” Reed said.
According to founder James Barfield, an online retailer specializing in motocross gear and parts, even the Strokes, which was just established in 2019, recorded a “horrible” decline in sales from the beginning of January. “Brexit threw a curve ball bigger than Covid,” he added.
Barfield’s courier service, DPD, has temporarily suspended roadside assistance to Europe, with new border and additional customs clearance blaming increased transit times. Customers are also dissatisfied with Even Strokes for higher shipping and time. Some people request a refund.
As a result, Barfield is currently considering renting a warehouse in the Netherlands or Belgium and is hiring new staff abroad.
Brexit: Dutch warehouse boom forced by British companies to invest abroad | Netherlands
Source link Brexit: Dutch warehouse boom forced by British companies to invest abroad | Netherlands