Page 47 - Linkline Summer 2017
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                                                        Post Logistics – Beyond Brexit
Post Logistics – a service from An Post offering high-quality, reliable, standardised freight forwarding for SMEs – launched late last year. It saw An Post link up with global logistics operator DB Schenker to open a reliable, simple, speedy and value- for-money corridor to the UK and the rest of Europe.
 Interest in Post Logistics is very strong from Irish SMEs across all sectors and areas of the country. The broad spread of businesses and locations reflects the reach of An Post’s network, which offers the same great service, be it from Bantry, Bray or Bundoran to all European destinations.
Post Logistics specifically assists SMEs. Its services are designed to meet their particular freight-forwarding needs including; online end-to-end tracking from pick-up to delivery, specified collection day, clear pricing structures, online purchase of additional insurance and universal service availability across the country – regardless of business location.
This eliminates much uncertainty for SMEs and allows them to guarantee top quality of service to their own end customers. SMEs also value the peace of mind of dealing with Ireland’s most trusted company - An Post.
Post Logistics is already delivering freight to at least 17 European countries, including; Italy, Hungary, Norway, Germany, France, Holland, Belgium, as well as the UK. However, more than 50% of traffic is into the UK market, which reflects the current trading realities for Irish SMEs and the level of concern around the impact of Brexit on their export business.
Impact of Brexit
Given the strong trade to date with the UK, how will Post Logistics fare post-Brexit?
Brexit, whatever form it takes, is expected to result in a shift among Irish exporters towards other European markets and away from the current over-reliance on the UK. “There is already strong evidence that Irish SMEs are making that shift and we see it in our growing traffic data”, said Liam O’Sullivan, Mails Operations Director, An Post.
In the short to medium term, for those SMEs that have not sufficiently diversified into other European markets, we foresee challenging trading conditions into the UK. If the outcome of Brexit is a hard border with tariffs, customs clearance and elongated end-to-end shipping times, the conditions will be particularly difficult. A growing export trade is essential for Ireland and Post Logistics is working with Irish SMEs as they set about expanding into new European markets and competing for new business, Liam added.
Liam O’ Sullivan
Brexit and An Post
Turning to the wider company, there are two key areas where Brexit could have a direct on An Post:
Approximately 60% of inbound international mail comes from the UK, with a further 25% from other EU operators and the remaining 15% from non-EU countries. Irish Customs have a statutory right to examine mail from non-EU countries and any monies deemed payable in duties or VAT charges are collected by An Post on behalf of the Revenue Commissioners. Should Brexit result in a large increase in the amount of mail requiring Customs examination, those volumes could potentially increase five-fold, vastly increasing operational demands on both An Post and Irish Customs, and in turn on customers.
An Post has seen huge growth in online shopping and the rate of growth is increasing all the time, with a large percentage of purchases coming from UK-based e-tailers. In a hard Brexit scenario, the application of tariffs to online purchases from the UK would negatively impact Irish shoppers and their carriers alike.
There is much uncertainty associated with Brexit and there’s no doubt it could bring challenging times for Irish businesses. On the other hand, new markets for Irish goods are opening up all the time, and with them, new opportunities. We are watching both sides closely.
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