Mike Parr, CEO of PML Seafrigo UK and Ireland, has outlined multiple pressures on the UK logistics sector, warning of potential impacts on fresh produce supply and pricing.
Parr cited issues including the unexpected EU reset, the reversal of the Approved Operator Scheme rollout, and ongoing delays at border points. He also criticised Heathrow Airport's performance, noting its absence from the top 20 global rankings, its high fees, and the proposed £21 billion (US$26.7 billion) third runway expansion.
According to Parr, some exporters are bypassing the UK altogether due to these costs. "I am aware of a customer in Africa who categorically refuses to fly to the UK, preferring to shift 30 tonnes of product a week into Europe, incurring significant road miles in the process and ultimately, eating into the precious shelf life of perishable goods," he said.
He warned that the UK is becoming less attractive to overseas exporters, with supermarket shelves already showing reduced fresh produce availability, particularly fruit, and products often arriving with shorter shelf life due to extended transit times.
Additional pressures include rising rates, increased energy costs, and higher expenses related to separating food waste from plastic, which Parr said are not shared with supermarkets. He believes these factors will further impact the supply of fresh produce into the UK.
Parr also criticised the government's handling of Brexit-related changes, specifically the decision to overturn arrangements set out in the Border Target Operating Model without responding to questions from the Fresh Produce Consortium. "Companies that have been preparing for Brexit for over five years, who have invested in training, staffing, and even (like ourselves) in the purchase of facilities capable of maintaining the seamless transfer of perishable goods, have been left high and dry," he said.
He noted that no compensation has been offered to cover investments made in preparation for Brexit, and warned that this uncertainty will likely lead to both shortages and higher prices for fresh produce.
Parr linked these logistics challenges to the government's Plan for Change and the forthcoming 10 Year Health Plan, which aims to encourage healthier eating by setting new standards for retailers. While supportive of healthier diets, Parr questioned the feasibility of these goals without ensuring an affordable and consistent supply of fruit and vegetables. "Surely the push towards encouraging healthier eating habits, which of course includes the consumption of more fresh fruit and vegetables, should take into consideration the action required to ensure these products are on the shelf, at a reasonable and accessible price point?" he said.
Source: FreshTalkDaily
