IATA issues alarm about Brexit impact on global supply chains
Absent any contingency planning being made transparent to the industry, the risks of not addressing key issues could mean “chaos” for interrupted supply chains.
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The International Air Transport Association (IATA) has called for urgent action by the UK and the European Union to put in place contingency planning for the continuation of air services in the event of a “no-deal Brexit,” and to move much faster to bring certainty to three critical air transport issues:
- The uninterrupted continuation of air connectivity;
- The framework for regulating safety and security; and
- The policies and processes needed for efficient border management
“These are the most critical areas because there are no fallback agreements such as the WTO framework available in a ‘no-deal’ Brexit scenario, said Alexandre de Juniac, IATA’s Director General and CEO.
He added that absent any contingency planning being made transparent to the industry, the risks of not addressing these issues could mean “chaos” for interrupted supply chains.
“With less than six months to go, we have little more certainty than we did in June 2016,” said de Juniac.
The call for urgent attention to air transport issues in Brexit follows the release of an IATA-commissioned Study of the effects of the United Kingdom leaving the European Union on airlines flying to and from the UK.
Chuck Clowdis, managing director of the consulting firm Trans-Logistics Group, Inc., told SCMR in an interview that he shares the view that the situation could be dire.
“It is critical that the UK and the EU fully address the importance of a codified air transport protocol in discussions of any Brexit deal,” he said. “The smooth, uninterrupted, safe, orderly border management are vital to a functioning air transport system. To overlook or give short shrift to these areas is perilous to the global economy.”
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]