In order to be able to deliver even after the Brexit on 29 March, British companies are stockpiling 'security stocks' on the European mainland. Conversely, European companies are doing the same in the UK.
The Financieele Dagblad concludes this after touring several warehousing and transport companies. Demand for storage space is said to have risen sharply in the UK and Europe, including the Netherlands. By stockpiling emergency supplies, companies ensure that they can continue to supply their customers even in the event of a hard Brexit.
Uncertainty drives demand
Evofenedex says it is receiving emphatic signals of these stock movements. "Uncertainty plays a big role in this," said a spokesperson for the industry association. Rotterdam-based Neele-Vat Logistics says it is already bumping up against the ceiling. The company says it faces a 10 per cent increase in volume due to the Brexit. "British companies are stockpiling security stocks for about a month," it said.
Read also: Transport and logistics sector most vulnerable in case of 'disorderly brexit'
Security stock SME
These would now still be stocks held by SMEs. They are more flexible than multinationals, says board chairman Kees Kuijken of Venlo-based logistics service provider KLG Europe. If a multinational is based in the UK, it cannot suddenly stock up in the Netherlands because of compliance rules. With SMEs, this is easier. They can set up branches in another country or arrange it with their customers or distributor.
Kuijken therefore expects even bigger stock shifts if multinationals decide to shift stock from the UK to Europe. "That is of even greater importance to the Netherlands than the temporary security stocks of SMEs," he said.
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