Jaguar Freight CEO Responds to the Brexit Transition

This year has been quite the whirlwind with changes in our industry. From the expansion of the Panama Canal, to new SOLAS regulations, and now the Brexit transition. Per usual, change is the only constant when it comes to global freight movement. We see advancements in technology almost daily, and international politics contribute to the constant influx of change, but what about massive change, such that as Brexit?

Wanting to get a deeper understanding of how Brexit is affecting the logistics industry, we interviewed Jaguar Freight’s CEO, Simon Kaye, a native Londoner. Simon’s experience with international trade is rooted in UK and US logistics. Having studied accountancy and finance at the City of London University, Simon founded Jaguar Freight Services with his father, Percy Kaye, in both London and New York in 1993. Simon moved permanently to the United States to establish Jaguar’s New York headquarters in 2002.

Some people are suggesting Brexit is the biggest step backward since World War II, what do you have to say about this?

Backwards or forwards no one really knows, but it’s certainly the most significant change in Britain’s relationship with mainland Europe, as well as its global trading partners, in decades.

Post-Brexit UK needs a new trade deal with the European Union, what do you think that will look like?

Britain is the second strongest economy in Europe and the largest single destination for Germany’s auto industry, as well as many other European manufacturers, so whatever the outcome, Britain will be going into the negotiations in a strong position. It is in no one’s interest, Britain or the EU, to try and impose a punitive trade deal on the other..

There is word about trade negotiations taking place on a country-by-country basis, what countries do you think will be most affected by Brexit, why?

Germany’s position will become even more significant after Brexit. Due to its strong and successful manufacturing economy, many countries will be looking to Germany to “steady the ship”. On the other hand, countries like; Austria, Greece, Poland as well as France and Italy will have to tackle their own political rumblings for an in/out vote. There are many who think that Britain is just the first domino to fall.

Brexit affects every E.U. member and those wanting to join it. Free-market economies rely heavily on open trade, as a logistics expert, how do you think limiting a free-market economy will change the logistics of goods and services internationally?

The flow of goods and services will not stop due to Brexit. Britain and the other European nations trade freely with almost everyone other country around the world and are only limited by the regulations imposed as part of bilateral trade agreements. The negotiations that will occur over the next 2 years will be instrumental in how easily trade will flow between global trading partners. What bureaucratic barriers will be imposed and what tariffs will be agreed will go a long way in determining the impact on global trade.

What, in your opinion, will happen in the short-term?

My opinion is that the British economy and currency will suffer in the short-term due to uncertainty and concern around negotiations with the EU. However, ultimately I believe that due to Britain’s strong economy and history of international trade and political prowess, it will emerge even stronger than it currently stands as a global trading nation.

Continue to follow the Jaguar Freight blog for more information on the Brexit transition. Our team members at Jaguar Freight are always ready to answer your questions about the ever-changing shipping landscape. Clear supply chain leadership, expertly coordinated around the globe, backed by an exceptional degree of customer care, that’s what we deliver.