Border closures cut off the UK over the new variant

Key points
  • France suspended for 48 hours traffic from the United Kingdom, lorries included, over the new coronavirus variant.
  • Queues of lorries built up in Kent and Eurotunnel suspended its services.
  • Eleven days before the end of the transition period, logistics had a dress rehearsal of what may come.

On the night of 20 December 2020, France suspended for 48 hours traffic coming from the United Kingdom, including lorries, after a new variant of the coronavirus was detected in the south of England. Eurotunnel suspended its services and thousands of lorries were held up in the county of Kent. Germany, Italy, the Netherlands, Belgium, Austria, Ireland and other countries announced general restrictions on flights from the United Kingdom. The British authorities, for their part, had announced stricter restrictions in London and south-east England that same weekend.

The measure came eleven days before the end of the Brexit transition period and in the middle of the Christmas season. For companies with supply chains between Europe and the United Kingdom, it was a highly visible dress rehearsal of what can happen when the border closes or slows down: goods held up, missed deadlines and unforeseen costs that mount up within hours. That is why the episode should not be treated as an anecdote: it is a signal.

What happened at the border

The corridor between the United Kingdom and the continent, crossed by thousands of lorries every day, depends on a few points: the port of Dover, the tunnel under the Channel and the ferries. When France closed access, lorries piled up on the roads of Kent awaiting a decision. The resumption of traffic depended on agreeing checks, such as rapid tests for drivers. Uncertainty about how long the closure would last complicated any decision to reroute cargo.

At the same time, several European countries and others around the world suspended or limited flights with the United Kingdom, fearing that the variant, which according to early data spread more easily, would spread. The situation changed from hour to hour, and companies depended on the information provided by each government, often at short notice.

What it shows for logistics

Many supply chains operate with minimal inventories and deliveries timed to the hour. A two-day interruption at a critical point is enough to leave a customer without stock. Fresh and perishable goods are the most sensitive, and companies selling to British retailers work with very tight deadlines, especially on the eve of Christmas. A delivery delay can mean contractual penalties or the loss of a customer.

Although that interruption was temporary, it showed how much trade flows depend on quick decisions and on the existence of alternatives. From 1 January, moreover, goods between the Union and the United Kingdom would need customs declarations, whether or not there was a trade agreement, so delays could stop being exceptional.

What to review

Companies that send or receive goods from the United Kingdom should review force majeure and delivery-time clauses, the cover of their transport insurance and alternatives for routes and storage. It is also worth considering extra stock of critical products and speaking to the freight forwarder about available capacity in the coming weeks.

A good practice is to keep contact details for carriers, customs offices and customers up to date, and to define who decides what when the unexpected arises. These recommendations are general; each business should assess its exposure with its logistics and customs adviser before changing contracts or delivery commitments. If the business depends on a single logistics corridor, it is the moment to consider a back-up alternative.

Logistics is rarely noticed until it stops, which is why the plan B should be prepared beforehand.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.

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