DPD leases Brexit backlog warehouse

Ahead of the planned unilateral withdrawal from the EU on 31 October, DPD has leased a 71,000 square foot warehouse to handle any customs backlogs.

Cross-border e-commerce has boomed lately as the internet allows shoppers to look to other countries for goods they may not get from the UK. Some 500,000 parcels enter the UK from the EU daily. The ‘No Deal Brexit’ could cause serious problems as customs struggle to cope with the volumes of parcels between the UK and EU.

DPD is believed to handle around 10% of the UK last mile delivery market and the new backlog warehouse can handle up to 50,000 parcels per day. The company expects this to hit 100,000 a month in the coming peak season.

Dwain McDonald, DPD’s chief executive, told The Sunday Times: “The whole system will grind to a complete halt.

“We can’t release the parcels until the duties have been paid.”

McDonald added: “The consumers aren’t going to pay for them upstream, so the tax will be levied when they get here.

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