Time is running out for businesses that need to adapt their supply chains before the Brexit transition period expires on January 1, but just across the North Sea, they’ll find a partner who can help them make the transition as smooth as possible.

Since 2016, when the Brexit referendum set the wheels in motion for the United Kingdom’s formal exit from the European Union, the logistics sector in the Netherlands has been busy behind the scenes. As Europe’s leading logistics location, with the world’s most efficient seaports and the highest quality air transport in the EU, the country has a critical role to play in ensuring minimal supply chain disruption once the transition period between the UK and the EU ends on January 1 of next year. International companies will be able to enter the European market with ease in 2021 and beyond, thanks to the Netherlands’ thorough preparation over the past several years.

Preparation nation

With the deadline rapidly approaching, the Netherlands is prepared for any outcome. The Dutch’s first task in preparing for Brexit was to determine the projected volume of trade between the UK and the Netherlands; because this trade has historically occurred within a single market, no statistics had been collected. According to Dutch Customs Administration calculations, the Netherlands expects a 20 to 30 percent increase in declarations for imported and exported cargo. To prepare for the expected increase in the flow of goods, the Administration has hired and trained over 900 new customs officers.

“We’re very fortunate in the Netherlands because trade organizations and Customs work well together,” said Roel van ‘t Veld, the Administration’s Brexit Coordinator. “We were able to collaborate in order to be prepared and have the systems up and running on both the customs and port sides.”

In response, Port of Rotterdam Spokesperson Leon Willems agreed that the Port – Europe’s largest – is “very good partners with customs, food and veterinary inspection, and ferry terminals.” Such collaboration is critical, as the Port of Rotterdam handles 80 percent of UK-Dutch trade each year.

This collaborative effort has been dubbed the “Dutch approach,” which requires shippers to digitally register their declarations before arriving at any point of entry into the Netherlands. The digital pre-notification is easily implemented using the Portbase system, which is a one-stop shop that connects all parties in the logistics chains of Dutch ports. This new digital solution has assisted the Netherlands in accommodating the increased flow of goods by allowing all parties in the logistics chain to communicate easily and efficiently. The Netherlands, as a digital pioneer, is paving the way with this solution to optimize logistical processes.

Some may be terrified at the prospect of the first day in a post-Brexit world. “It’s not as simple as getting your customs ID number,” van ‘t Veld explained. “The nature of trade between the EU and the UK has shifted.” Despite this, the Netherlands’ policy on January 1 was “business as usual.”

Beginning that day, all shippers will be required to register their cargo with Portbase prior to their arrival in the Netherlands. Based on simulations, the Port of Rotterdam expects about 250 trucks to arrive without this digital paperwork, and has tripled the number of contingency parking spaces to accommodate them.

The arrival of January 1 does not, however, imply that the Dutch logistics sector can sit back and relax. “We’re not finished yet,” Jochem Sanders, Manager of Business Relations & Business Development Europe at the Holland International Distribution Council, said (HIDC). “Every day, businesses approach us to discuss a logistics solution that is “EU 2021-proof.” We anticipate that all of our members will be working on Brexit-related opportunities in 2021.”

Opening a store in the Netherlands

While the Netherlands has made it as simple as possible for businesses to continue the flow of goods between the UK and the EU following Brexit, some have gone a step further and established a new supply chain outpost in the Netherlands to better serve their European customers.

“We’ve seen a significant increase in the number of Brexit-related projects in recent months, which indicates that there is a high demand for logistics solutions in the Netherlands,” Sanders said.

One such company is Monster Group, a British online retailer that established a European Distribution Center in the Dutch city of Venlo to avoid potential Brexit disruptions to its operations.

According to Monster Group’s Managing Director Rana Harvey, they chose the Netherlands not only because of the country’s superior English language skills, but also because of several logistical benefits. The Venlo location, for example, enables the company to fulfill next-day deliveries to many of their European customers and to quickly and cheaply import containers from Asia into the Port of Rotterdam.

“When dealing with the Netherlands – with the NFIA and HIDC – we discovered that everyone wanted us to succeed, and we did,” Harvey explained. “In exactly one month, we opened our doors and began accepting parcels delivered from the United Kingdom.” In fact, Monster Group’s relocation to the Netherlands has proven to be even more advantageous than anticipated: for the first time, the company achieved a 50:50 sales split between the UK and Europe in January 2020.

When asked how Monster Group is preparing for January 1, Harvey said they’re working hard to get the paperwork in order for the goods they do send out from the UK – luckily, that’s only 6.5 percent of their trade to the EU. “The rest is serviced entirely by Venlo, which is a good thing!”

Please contact us for more information if you are interested in doing business in the Netherlands.