Concerns of the ability of UK firms to stockpile goods ahead of the latest EU exit date of 31 October have been intensified as the shortage of warehouse space, coupled with the timing of the deadline looks set to cause severe availability issues for any additional warehousing capacity.
The estimated nationwide vacancy rate for warehouses of over 100,000 square feet currently stands at just 6.8%. And, when looking at the figures on a regional basis, there is a stark contrast within the regional differences of availability, with the South East, London and Anglia regions each recording much lower percentages of available space, with just 2.2% available capacity within the inner M25.
Comparing these figures to just a decade ago, where the national vacancy rate for warehousing stood at 24%, it emphasises just how tight availability for additional warehousing has become.
This is in part due to the rise of e-commerce, and also due to the lack of new warehouse units being built as any new land is increasingly being used for residential development.
Comments made by both Prime Ministerial candidates, Boris Johnson and Jeremy Hunt, that they would be willing to leave the EU with no deal come October has increased concerns of the reality of a ‘No Deal’ Brexit and the pressure it may bring.
Unlike the original deadline of March, where companies were able to use their buffer space for stockpiling, the revised deadline has always traditionally been the peak season for the logistics industry, a peak season which has been amplified in recent years due to rise of annual retailer promotions.
“It couldn’t have come at a worse time for the logistics industry” said Peter Ward, CEO of the United Kingdom Warehousing Association (UKWA) on BBC’s Newsnight on 2 July. “It’s not just Christmas. It’s Black Friday, Cyber Monday, and, in the non-food sector, those special promotions for Halloween. It’s all coinciding around the end of October.”
Whilst stockpiling ahead of the Brexit deadline has already begun, Velta are still able to provide storage solutions for you!
Not only can we provide short or long term solutions for storage of up to 2,000 pallets at our Essex based distribution centre but we are also able to hold your product under bonded / duty suspended / CFSP regimes.
So to guarantee the smooth running of your supply chain through the Brexit transition contact the team at Velta today.