The UK and EU last week unveiled a sweeping agreement that promises to redefine the logistics calculus for companies trading across the Channel. At the heart of the reset lie two seemingly dry technical mechanisms, a sanitary and phytosanitary (SPS) accord and a carbon trading linkage, that together unlock faster lead times, smoother port operations, and potentially hundreds of millions in annual cost savings.
While broader headlines have focused on the political symbolism of rapprochement, the real substance lies in border friction and carbon cost relief. For many manufacturers, food importers and logistics providers, this is not just a diplomatic truce; it’s a structural shift.
The SPS agreement, which removes routine physical checks on most plant and animal products, is expected to slash delays at critical ports such as Dover and Holyhead. For hauliers transporting perishable goods, the operational impact could be immediate. “The new UK-EU agreement on SPS measures marks a real step forward in easing post-Brexit pressure on agri-food and dairy supply chains,” said Wayne Chapman, CEO of Staci UK. “By scaling back routine checks on products like meat, dairy, and fresh produce, we’re likely to see fewer hold-ups at the border and a noticeable reduction in paperwork and administrative overheads.”
Smaller logistics players stand to benefit too, though the gains may not be evenly distributed. “The National Audit Office has already highlighted inconsistent readiness across ports,” Chapman added. “If implementation varies too much, some operators — particularly those relying on smaller or less-resourced entry points — could still face friction.”
Stephen Williams, co-founder of Fidelity Fulfilment, agrees the move is welcome for larger shipments and B2B flows: “We do expect to see less delay, better reliability, and faster transit times for larger B2B shipments or full trailer freight shipments. However, unless you’re operating within the food, drinks or agricultural sector, the impact will likely be limited.”
Just as pivotal is the formal link between the UK and EU emissions trading systems (ETS), which exempts UK exporters from the incoming Carbon Border Adjustment Mechanism (CBAM). With carbon now a tradable commodity, and CBAM set to impose tariffs on imports from jurisdictions with weaker carbon pricing, the linkage is a lifeline for UK firms shipping steel, cement and food to the EU. Chapman called it a “meaningful cost saving” and added that the exemption “removes a significant cost burden and reopens the door for thousands of smaller UK-based producers who had stepped back from cross-Channel trade.”
Williams echoed the sentiment: “We would expect savings to come from two key areas: lower transaction costs, and lower overall compliance costs due to closer alignment between regulations. For UK exporters, there will also be exemption from the EU CBAM — an additional tax on goods that are imported from countries with less stringent climate policies.”
From a broader perspective, OCI Group CEO Oliver Chapman — who shared his insights with us here — called the ETS linkage “a significant step toward climate policy alignment,” allowing businesses “to consolidate carbon accounting and trading” and “streamline compliance requirements across borders.”
So who benefits most — and how soon?
For a chilled-food SME, reduced SPS checks mean less spoilage and more reliable inventory cycles. For automotive suppliers, shorter port queues may restore just-in-time delivery models shelved since 2021. And for third-party logistics (3PL) firms running mixed fleets, predictability alone could drive routing efficiencies that translate into double-digit margin gains.
“The new SPS rules and reduced border checks should improve door-to-door lead-times quite quickly — potentially shaving hours or even days off delivery times,” said Viktor Clintom, Chief Operations Manager at Clintopia. “Over the next six months, we expect fewer hold-ups, fewer rejected loads, and more predictable transit times.”
Yet efficiency won’t be unlocked by policy alone. Much hinges on whether existing customs platforms — including the Goods Vehicle Movement Service (GVMS) and the Border Target Operating Model (BTOM) — are capable of processing simplified data inputs from the new SPS regime. Bob Vines, UK Country Manager at TSC Auto ID, stressed the role of real-time inventory tracking and automatic identification and data capture (AIDC) technologies: “Companies are already widely adopting AIDC technologies like RFID to improve inventory accuracy by up to 95 per cent. I can see more widespread adoption of tech such as RFID as the UK/EU trade details become clearer.”
He also flagged future regulatory pressures, including the EU’s incoming digital product passport (DPP): “This piece of EU legislation is due to start in 2027 and be in full operation by 2030 and it was already going to significantly affect UK businesses trading with the EU. We’re encouraging customers to prepare for such legislation by incorporating 2D barcodes such as QR codes powered by GS1 and Data Matrix into their processing; they’re a game-changer when it comes to traceability.”
But implementation risks remain. Regulatory divergence could blunt the upside. Labour shortages and inconsistent digital infrastructure may limit the immediate impact for some operators. And the UK’s track record on delaying import checks raises questions over future readiness. “Challenges persist,” said OCI’s Chapman. “Labour shortages, inconsistent digital customs systems, and continued regulatory divergence in areas like pharmaceuticals and chemicals could limit the deal’s immediate impact. SMEs may also struggle to adapt without targeted support.”
Even 18–24 months down the line, outcomes may diverge based on investment. DataDocks CEO Nick Rakovsky highlighted a growing shift in capex strategy: “Our customers are deferring big warehouse builds, and their budgets are migrating to digital workflows that line up customs data, live arrival times and bay availability.”
The purpose of this, Rakovsky says, is so that each shipment handover is as seamless as possible, with lorries pre-cleared on arrival and leaving a clean audit trail of dwell time, cost and emissions. “That quiet, data-first approach is what they expect will shorten lead times, keep ETS costs off the P&L, and let them add the occasional near-shore supplier without pouring more concrete.”
For supply chain leaders, the immediate focus should be on execution. Key next steps include repricing EU contracts to reflect lower transport friction and CBAM exemption; adjusting fleet routing models to take advantage of faster Dover throughput and Irish Sea flow; scaling back warehouse buffers where just-in-time models regain feasibility; upgrading digital customs systems to capture simplified SPS data and align with EU DPP frameworks; and consolidating carbon reporting across UK and EU operations under the shared ETS model.
As OCI’s Chapman summed up: “The new UK-EU deal offers a welcome reset that reduces friction, supports sustainability goals, and improves trade flows. That said, realising its full benefits will require swift adaptation and further investment in infrastructure and technology.”
