United Kingdom Freight and Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

United Kingdom Freight and Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The United Kingdom freight and logistics market is anticipated to register a moderate growth rate of 2.5% during the period. Logistics has been facing unprecedented challenges because of the COVID-19 pandemic, both in terms of keeping the United Kingdom economy supplied with all the goods it needs to function, as well as coping with the increased disruption to staffing levels caused by sickness and self-isolation and concerns about the viability of their businesses.

According to the Industry Reports, the COVID-19 lockdown led to the rapid expansion in the digitization of fleet services. Much of this trend has been prompted by the sudden and widespread switch to home working that the lockdown has caused. Brexit is going to have a significant impact on the international road freight transport market. As per the latest agreement, the United Kingdom haulers can carry out one cabotage operation, and the EU haulers can carry out two cabotage operations in the United Kingdom territory.

Rail freight is poised to play a much bigger and prominent role in the movement of goods in the United Kingdom. The use of rail freight is steadily increasing in the United Kingdom, with a total volume of rail freight moved to rise by 3% year on year. ​ Network Rail has forecast that rail freight could grow by around 30% by 2035 if sufficient capacity were made available. The development of the Europe – China rail network and underground rail networks can bolster the growth in this sub-sector.​

Technical developments and commercial and environmental pressures over the next 30 years are expected to encourage freight operators to explore innovative ways to ship goods through ports. According to British Ports Association, it would result in a growth in traffic through almost all the ports in Britain.

The supply chain needs to respond to heightened competition in the last mile, as e-commerce operations grow in the wake of the coronavirus. Last-mile logistics will be a highly competitive environment, as companies look to their supply chains to give the best possible customer experience. This will call for technological innovation to enable retailers to scale up home delivery systems to fast once normality returns.

The logistics sector is restless, seeing the growing demand for logistics services generated by the boom and evolution of e-commerce. United Kingdom (United Kingdom) has the most advanced e-commerce market in Europe.

United Kingdom’s continued leading role in online retail is causing the logistics and transport sectors to rethink their models to ensure future growth. Consumer demands for flexible deliveries have increased, which provides retailers and the logistics sector the challenge to achieve the required level of flexibility.

United Kingdom’s continued leading role in online retail is causing the logistics and transport sectors to rethink their models to ensure future growth. Consumer demands for flexible deliveries have increased, which provides retailers and the logistics sector the challenge to achieve the required level of flexibility. In regard to this, the demand for last-mile delivery services and less than truckload service has been growing significantly, with many start-ups are entering the market to address the challenges that occurred by the explosion of e-commerce.

In regard to this, the demand for last-mile delivery services and less than truckload service has been growing significantly, with many start-ups are entering the market to address the challenges that occurred with the explosion of e-commerce.

Around 89% of all goods transported by land in Great Britain are moved directly by road, and 98% of all food and agricultural products in Great Britain are transported by road freight. Approximately 98% of all consumer products and machinery in Great Britain are transported by road freight.

Ports are increasingly working on improving efficiencies. For instance, truck turnaround times at the Port of Liverpool fell after Peel Ports (owner) announced to turn its focus to road haulage efficiencies. ​

Road freight transport operates the most extensive transport network of all freight modes. The network provides flexibility and convenience for door-to-door delivery and supports the growing e-commerce sector. Road freight transport occupies a major share in inland freight transport, with around 90%, followed by rail. ​

The report covers the major players operating in the United Kingdom freight and logistics market. The freight and logistics market in United Kingdom is fiercely competitive, fragmented in nature with the presence of many international and domestic companies. The top players in the segment include DHL, DPD, and UPS among international players, and Clipper, Wincanton, and ACS among domestic players.

In this environment, where profit margins are shrinking, road haulage operators have to be highly efficient and cost-effective in order to remain profitable. ​Throughout Europe, especially in United Kingdom, thousands of road transport operators handle materials for retail, manufacturing, automotive, and construction industries. ​

E-commerce and digital platforms have transformed the logistics sector largely due to the high presence of logistics companies, making it easier for the consumer to order and get the product delivered.

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