BREXIT MEANS BETTER TRADE
Summary:
Companies like Mazda are now shipping directly to the UK instead of to a central hub in Belgium to be reshipped later from there – and in the process, providing more jobs to UK citizens, reduced lead times, more choice, higher reliability and better service to their customers.
“The new shipping route streamlines UK deliveries and removes the risk of delays caused by Europe to UK transit issues” (read: delays caused by French workers strikes).
Win-win-win.
Explanation:
The Rotterdam Effect is a well known concept in EU trade discussions, and relates to how trade between fellow EU members can be incorrectly overestimated, due to the volume of shipments by sea that first arrive into the EU at either Rotterdam or Antwerp to then be redistributed from that central hub. What is not as commonly discussed, is the effect this centralisation has on the products being imported, and the location of many of the jobs required in shipping and logistics. Companies like Mazda, who routinely import goods manufactured overseas for sale in the UK, have been moving away from importing to Rotterdam first as a central hub – as it no longer favours their business model and profit margins to do so.
Mazda, like many companies, are now shipping direct to the UK – which in doing so provides more jobs in the UK in shipping and logistics. It also provides reduced lead times, more choice, higher reliability and better service. As stated by Mazda regarding the change: “The new shipping route streamlines UK deliveries, and removes the risk of delays caused by Europe to UK transit issues” (read: delays caused by the all-to frequent workers strikes at the French borders)