Tesco share price continues to suffer as fears of food shortages in the UK this summer surface.
The onset of Brexit has meant more customs checks, more confusing paperwork and mounting uncertainty around the supply chain for foodstuff, groceries and other essential items. Brexit also means that trucking jobs previously held by Eastern Europeans are now unfilled, with close to 100,000 vacancies begging for immediate fills.
The result? The few delivery trucks still running are overstretched and now risk spending days at border points, with severe disruptions in the supply chain of many items. This has kept online grocery and supermarket chains like Tesco in limbo about what the summer months hold. Industry leaders have written to UK Prime Minister Boris Johnson to personally supervise the process of creating a special temporary visa for truck drivers by classifying them as an occupation facing labour shortages.
Chief Executive of Road Haulage Association Richard Burnett says there are reports of supermarkets not getting their expected food refills. Considerable wastage due to perishables not surviving the elongated journeys across the UK-EU border are also a problem.
Tesco and other supermarket brands have a critical reliance on these trucking services to stock their warehouses and also deliver fresh food produce from European farms to UK shelves. With the disconnect now on the verge of creating a full-blown food crisis, investors are starting to get spooked. Tesco share price is down 0.26% as of writing.