In an increasingly interconnected world, efficient border control is essential to maintaining the smooth flow of goods and services. However, recent delays in the implementation of the EU’s Entry/Exit Scheme (EES) have sparked concerns within the logistics industry, particularly for UK businesses reliant on EU trade routes. The EES is part of the EU’s broader effort to enhance security by introducing biometric checks for non-EU nationals entering and exiting the Schengen Area. While this may improve border control over time, the short-term impact of its delayed implementation could be highly disruptive for UK-EU trade.

The logistics sector, which already grapples with various challenges such as supply chain disruptions, labor shortages, and fluctuating fuel prices, is now facing a potential storm of further complications at the EU borders. The delayed implementation of the EES will involve biometric checks for drivers of freight vehicles, which could lead to significant delays, increased costs, and complications in the transportation of goods between the UK and the EU.

In this blog post, we’ll explore the key elements of the EES, discuss why its delay is raising concerns for logistics companies, and analyze the potential implications for UK-EU trade routes and the wider logistics sector.

Understanding the EU Entry/Exit Scheme (EES)

The Entry/Exit Scheme (EES) is an EU-wide system designed to improve the management of external borders by recording the entry and exit of non-EU nationals, including biometric data such as fingerprints and facial recognition. This system aims to strengthen security across the Schengen Area, enhance visa control, and help manage migration flows more effectively.

Under the EES, non-EU nationals, including UK citizens post-Brexit, will undergo biometric checks when entering or exiting the EU. These biometric measures include fingerprint scans and facial recognition, replacing the previous method of manual passport stamping. While the EES is expected to bring long-term benefits by improving border control and reducing illegal migration, its implementation has been repeatedly delayed, raising concerns about its impact on the logistics sector.

For logistics companies that operate cross-border trade between the UK and the EU, the introduction of biometric checks means that truck drivers, many of whom are non-EU nationals, will have to undergo these checks at the borders. This additional layer of complexity is expected to slow down border crossings, increase waiting times, and create bottlenecks at key EU-UK trade routes.

Why the Delay in EES Implementation is a Concern

While the EES is ultimately designed to improve security, the delay in its implementation is causing significant anxiety within the logistics industry, particularly in the UK. Logistics UK, one of the leading trade associations representing logistics companies, has raised concerns about the scheme's delayed rollout and its potential impact on trade efficiency.

1. Disruption to Key UK-EU Trade Routes

The UK’s exit from the European Union introduced new complexities to trade between the two regions, from customs checks to regulatory changes. The delayed implementation of the EES introduces yet another challenge, particularly for road freight operators who rely on the seamless movement of goods between the UK and the EU. The EU is one of the UK’s most significant trading partners, with thousands of trucks crossing the borders daily to transport goods across the continent.

The introduction of biometric checks at the EU’s borders has the potential to create significant bottlenecks at key crossing points, such as the Channel Tunnel and ferry ports like Dover and Calais. With additional time required to capture and verify biometric data for each driver, the already strained border infrastructure could experience substantial delays.

Even small delays at border crossings can have a ripple effect on supply chains, leading to missed delivery deadlines, higher transportation costs, and reduced availability of goods. In industries like food, pharmaceuticals, and manufacturing, where timely deliveries are critical, these delays could result in severe disruptions to supply chains, affecting both businesses and consumers.

2. Increased Costs for Logistics Companies

In addition to causing delays, the implementation of biometric checks is expected to result in increased costs for logistics companies. According to estimates from Logistics UK, the additional waiting times and operational challenges at EU borders could cost logistics companies up to £1,100 per truck. These costs arise from a combination of factors, including:

• Increased Waiting Times: The longer it takes for trucks to clear border checks, the higher the costs incurred by logistics companies in terms of fuel consumption, labor, and lost productivity.

• Driver Availability: Biometric checks add complexity to an already stretched labor market. Delays at the border reduce the efficiency of drivers, increasing the time required to complete each journey, which could lead to a shortage of available drivers.

• Fuel Costs: Trucks idling in long queues at border crossings use more fuel, adding to the overall cost of transportation. Rising fuel prices further exacerbate this issue, making cross-border trade more expensive for logistics companies.

• Missed Deliveries and Fines: For time-sensitive deliveries, especially in the case of perishable goods or “just-in-time” supply chains, delays at the border can result in missed delivery windows, leading to penalties and lost revenue.

For small and medium-sized logistics businesses, these increased costs could be particularly challenging, putting additional pressure on their already tight profit margins. For larger operators, the need to manage longer waiting times and more complex border procedures will likely require investments in technology and workforce management to maintain efficiency.

3. Impact on Goods Availability and Trade Flow

Delays at the EU border due to the EES could also have a significant impact on the availability of goods within the UK and across the European market. For industries that rely on rapid and consistent movement of goods—such as retail, manufacturing, and healthcare—any disruption to the flow of trade can lead to shortages, supply chain disruptions, and price increases.

In the retail sector, for example, delays at the border can affect the timely delivery of consumer goods, leading to stock shortages and customer dissatisfaction. This is especially concerning for businesses that operate “just-in-time” supply chains, where goods are ordered and delivered only as needed, with little to no inventory held in stock. Any disruption in this tightly controlled system can cause widespread ripple effects throughout the supply chain.

Similarly, in the manufacturing sector, delays in the transportation of raw materials and components from the EU can slow down production, leading to increased downtime and reduced output. For manufacturers that rely on the timely delivery of materials to meet production schedules, any delay can result in lost revenue and operational inefficiencies.

4. Supply Chain Vulnerabilities and Brexit Complications

The EES delays are not occurring in a vacuum. They add to the existing complications of Brexit, which has already introduced new customs checks, regulatory requirements, and paperwork for UK-EU trade. These changes have increased the complexity of cross-border trade, forcing businesses to adapt to new trading environments and deal with increased compliance costs.

With the implementation of the EES, logistics companies are now facing additional layers of bureaucracy that further exacerbate the challenges introduced by Brexit. Businesses that have already adapted to post-Brexit trading requirements will need to prepare for even more stringent checks at the border, complicating their operations and increasing the risk of delays.

Moreover, the EES delays highlight the vulnerability of UK-EU trade routes in an already fragile supply chain ecosystem. Any further disruptions to these critical routes could strain relationships between UK and EU businesses, leading to potential trade losses and long-term challenges in maintaining supply chain resilience.

Preparing for the EES: Strategies for Logistics Companies

While the delays in implementing the EES pose significant challenges, logistics companies can take proactive steps to mitigate the potential impact of these changes on their operations. By adopting strategic approaches, businesses can navigate the uncertainties of the EES and minimize disruptions to their supply chains.

1. Investing in Technology and Automation

Technology and automation can play a critical role in helping logistics companies streamline their operations and reduce the impact of delays at the border. By investing in real-time tracking systems, automated customs clearance tools, and digital documentation, companies can reduce the time spent processing paperwork at border crossings and improve the efficiency of their logistics networks.

Furthermore, predictive analytics can help logistics companies identify potential delays and reroute shipments to minimize the impact of bottlenecks. By using data-driven insights to optimize route planning, businesses can ensure that goods reach their destinations as efficiently as possible, even in the face of disruptions.

2. Training and Workforce Management

With biometric checks adding complexity to border crossings, it is essential for logistics companies to ensure that their drivers and staff are properly trained to navigate the new procedures. Providing drivers with the necessary information and guidance on the EES will help streamline the process at the border and minimize delays.

Additionally, workforce management strategies, such as ensuring that enough drivers are available to meet demand and avoid bottlenecks, will be crucial in maintaining efficient operations.

3. Building Flexibility into Supply Chains

To mitigate the impact of delays, logistics companies should consider building greater flexibility into their supply chains. This could include diversifying supply routes, increasing inventory levels, or collaborating with multiple carriers to ensure that goods can be transported through alternative routes if needed.

By adopting a more flexible approach to logistics planning, businesses can reduce their dependency on specific trade routes and minimize the risks associated with border delays.