**Midlands**: Geoff Yates, Commercial Director of Espace Global Freight, discusses the mounting challenges SMEs face amid rising costs, Brexit adjustments, and the push for sustainability in the UK, urging businesses to explore innovative transport solutions like rail and Third-Party Logistics (3PL) operators for greener operations.
Geoff Yates, Commercial Director of Espace Global Freight, has highlighted the growing challenges faced by small and medium enterprises (SMEs) in the UK, remarking that “the challenges to SME businesses seem to be increasing day by day.” As businesses contend with rising employment costs, difficulties in international trading, and the requirements of the green agenda, it appears that SMEs are particularly struggling compared to larger companies.
Espace Global Freight, established in the Midlands, has been operational for 25 years, providing freight forwarding services to a diverse clientele, ranging from senior Formula 1 teams to burgeoning startups. Yates noted, “We’ve always had a great reputation as a company which puts people front and centre and one which takes away the ‘hassle’ of moving goods around for customers who are not necessarily used to it.” He elaborated on the company’s experience in navigating the complexities introduced by Brexit, stating, “We’ve helped hundreds of different clients through the Brexit years, many of which knew nothing about international trade.”
As businesses begin to adjust to the new post-Brexit trading environment, Espace Global Freight is shifting its development focus towards future hurdles, notably environmental compliance and sustainability. The UK has set a legally binding goal to achieve net-zero greenhouse gas emissions by 2050, and with legislative changes, including the upcoming ban on the sale of new internal combustion engine vehicles, the pressure on businesses to adapt is mounting.
Yates anticipates increased green legislation in the coming years, mentioning the Carbon Border Adjustment Mechanism (CBAM) slated for 2027 and the possibility of the UK rejoining the EU Emissions Trading Scheme (EU ETS) as part of a potential reset in UK-EU relations. He pointed to research commissioned by DHL which indicates a desire among traders to embrace green transport solutions, although many are hesitant to incur additional costs at this time.
The director explained that achieving a genuinely sustainable supply chain involves more than simply offsetting carbon emissions. He suggested that one practical approach for traders is to employ rail transport, which can reduce carbon emissions by up to 78%, along with alleviating road congestion. “Rail is a real option now, one which can be adopted but the rail network is harder to access than haulage would be,” Yates stated. He encouraged businesses interested in sustainable transport solutions to consult with experienced freight forwarders to explore various options.
Furthermore, Yates advocated for the use of Third-Party Logistics (3PL) operators as a means to enhance sustainability and operational efficiency. He remarked, “Using a 3PL warehouse though is a no-brainer,” due to the benefits of shared facilities which reduce carbon footprints and cut costs. The approach eliminates the need for businesses to light and heat individual warehouse spaces and allows access to more affordable transport solutions.
For those interested in learning more about Espace Global Freight’s services, including 3PL offerings, the company has provided contact details for further inquiries.
Source: Noah Wire Services
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