Business, Freight News

Brexit ‘would push up parcels costs’ says report

[ June 3, 2016   //   ]

Duties, border delays and transport costs will make EU-based smaller companies reluctant to trade with the UK following Brexit, says a new report by parcel broker, ParcelHero.

According to Delivering Brexit, 66% of ParcelHero’s customers who regularly ship items to European non-EU countries, such as Switzerland and Norway, say they would prefer them to be inside the Union. ParcelHero’s head of consumer research, David Jinks, says: “The same difficulties with tariffs, border delays, red tape and transport costs that now discourage UK SMEs from trading with Switzerland and Norway, are exactly the hindrances that will hit business between the UK and the EU post-Brexit.”

And while the Swiss economy is held up by Leave campaigners as the trading model for the UK post-Brexit, ParcelHero’s small business customers shipped three times as many parcels to the Netherlands as Switzerland, even though the countries have similar-sized populations.

And the cost of shipping a 10kg parcel to Italy is£16.14 (before VAT and any surcharges) but the cheapest rateto Switzerland – broadly the same distance – is £36.90.

David Jinks adds: “Transport costs are one of the reasons why consumer prices in Switzerland are 58% higher than in the UK. For example, a typical pair of Nike shoes costs £59.36 in the UK but £88.35 in Switzerland…It gives some idea how much prices could rise in the UK post-Brexit.”