Speaking on BBC Newsnight, UKWA CEO Peter Ward has warned that UK warehouses are already full, suggesting that stockpiling before the potential no-deal Brexit on October 31st may be near impossible.
Peter Ward said: “Stockpiling before the potential no-deal Brexit on October 31st may be near impossible. There is little available space. The market, as represented by our members, is virtually at full volume.”
He continued: “The biggest concern at the moment is that the October deadline comes right bang in the middle of peak season. From a timing point of view it couldn’t be worse.”
“You can’t just turn on supply; and the vacancy rates talked about by the industrial agents are largely de-coupled from the Brexit related surge in demand. For the most part the demand is for the kind of fully serviced logistics solutions that UKWA members provide – in other words warehousing with racking, materials handling equipment, labour and connectable warehouse management systems with ‘pay as you play’ transactional pricing. This is very different from empty buildings with landlords seeking long-term lease commitments. In any event, adding new real estate to the system can take a number of years, and I can’t see any increase in capacity by October.”