Two thirds of UK businesses have had their Brexit preparations disrupted by COVID-19, with less than a quarter (23 per cent) having high confidence in their ability to cope with the extra administrative burden of leaving the EU.

This is according to research from logistics specialist Descartes Systems, which commissioned SAPIO Research to interview supply chain managers in July.

They found that two thirds (67 per cent) of large firms were very or extremely concerned about longer delays in their supply chain impacting the business post-Brexit.

Fewer than one in five (18 per cent) of UK businesses are prepared for a ‘no deal’ Brexit, while almost three quarters (72 per cent) were concerned about the customs brokerage market’s capacity post-Brexit.

Two fifths (40 per cent) were also concerned about customs declarations impacting their business post-Brexit.

Just over half (52 per cent) think a UK-EU trade deal is unlikely to be achieved before the end of the transition period on 31 December 2020 - and only 10 per cent of supply chain managers claim to have total certainty regarding the impact of Brexit on their business.

Delays to the supply chain (45 per cent) were the biggest concern regarding the impact of Brexit on cross-border trade. However, the larger the organisation, the greater the concern regarding supply chain delays: 56 per cent of supply chain managers in firms with over 1,000 employees were worried about delays to the supply chain.

Over two thirds (68 per cent) of supply chain managers within healthcare were also concerned about supply chain delays. Tariff payments (40 per cent) and customs declarations (40 per cent) were the next highest concerns.

Pol Sweeney, vice president of sales at Descartes, commented: “Since the Single Market came into force there have been no customs formalities between the UK and EU for nearly 28 years, over which time international trade has grown and evolved significantly.

"The fact is that Brexit will have vast implications for any company importing or exporting out of the UK. Our research highlights the need for organisations to act now to ensure the right systems, processes and skills are in place in time.”

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