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            january 27, 2020

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DSV warns of disruptions in supply chain


Danish transport and logistics company DSV has warned of supply chain disruption if the UK leaves the European Union in March without a trade deal in place.
Speaking during an investor call shortly after announcing its 2018 full-year results, Chief Executive, Jens Bjorn Andersen said that some customers were moving their European distribution centres out of the UK.
He added that DSV had enough warehouse capacity to deal with companies looking to stockpile goods and overall it had a "good grip on the situation".
He said: "We have worked very closely with our customers for the last five-six months but, depending on the outcome, we are not in a position where we can guarantee a full and seamless operation if it becomes a no-deal scenario.
"We have said to customers they should expect some disruption in their supply chains if no-deal is the case.
"Some customers don't really have any issue with this, some might have chosen the UK as a European distribution centre so of course we are helping them to move their products outside of the UK and service Europe from maybe the Benelux or Germany, others have the reverse problem.
"It is a complex situation, but I think we have a fairly good grip on the situation."
Kuehne+Nagel has made similar warnings about Brexit, while Panalpina has set up a Brexit task force, reports London's Air Cargo News.
Several organisations have warned they expect queues at channel crossings if the UK leaves the EU without a trade deal in place, potentially resulting in extra paperwork.
Shippers, meanwhile, have stated that they could turn to airfreight to beat any overland and sea blockages.

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