Table of Contents
Executive Summary
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- Market size and segmentation
- More subdued growth expected in 2017
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- Figure 1: UK logistical services market value, 2013-17
- Road freight drives market growth in 2017
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- Figure 2: UK logistical services market segmentation, by type, 2013-17
- Market trends
- E-commerce leading the development of a new logistical operations model
- Driver vacancies remain high whilst practical LGV test pass rate remains just over half
- Noticeable rise in the percentage of vehicles running empty in 2016
- Improved fuel efficiency supported by a decline in the average length of haul
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- Figure 3: Average length of haul, 2012-16, by type of vehicle
- Market factors
- Lowest half-year GDP growth since 2012 could impact logistical operations...
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- Figure 4: GDP growth rate, Q1 2013 - Q2 2017
- ... with Brexit bringing further uncertainty
- Fuel prices rise over 2017 to date, but fuel duty remain constant
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- Figure 5: Typical retail cost of fuel in the UK, by type of fuel, 2013-17*
- Industry structure
- Fall in the number of ‘mega’ deals, but industry continues consolidating
- Forecast
- Stable growth anticipated until 2022
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- Figure 6: UK logistical services market value forecast, 2018-22
- What we think
Key Insights
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- How are disruptive new players forcing traditional providers to adapt to new market dynamics?
- Is the UK’s industrial strategy strong enough to drive growth?
- Is the industry doing enough to combat its environmental impact?
Introduction
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- Definitions
- Methodology
- Abbreviations
- Market positioning
- The customer
- The supplier
- Regulation
UK Economy
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- Key points
- Overview
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- Figure 7: Forecast GDP development 2017-21
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- Figure 8: UK GDP quarterly development, 2007-17
- Inflation
- Interest rates
- House prices
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- Figure 9: UK house price changes, 2006-17
- Consumer spending
- Manufacturing
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- Figure 10: UK manufacturing, 2014-17
- Business investment
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- Figure 11: UK GFCF, 2004-17
- Imports
- Exports
Market Factors
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- Key points
- Lowest half-year GDP growth since 2012 could impact logistical operations...
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- Figure 12: GDP growth rate, Q1 2013-Q2 2017
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- Figure 13: GDP growth rate, Q1 2013-Q2 2017
- ... with Brexit bringing further uncertainty
- Stable growth in retail sales despite inflation maintains demand for logistical services
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- Figure 14: Retail sales trends, 2015-17
- Fuel prices rise in 2017 to date, but fuel duty set to remain constant for the foreseeable future
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- Figure 15: Typical retail cost of fuel and the fuel duty level in the UK, 2013-17*
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- Figure 16: Typical retail cost of fuel in the UK, by type of Fuel, 2013-17*
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- Figure 17: European petrol and diesel prices, 2017
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- Figure 18: European petrol and diesel prices, 2017
- Skills and driver shortage threaten industry’s attempts to match rising demand levels
- Road congestion affecting growth development with businesses losing potential earnings
Market Size and Segmentation
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- Key points
- More subdued growth expected in 2017 as UK endures economic uncertainty
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- Figure 19: UK logistical services market value, 2013-17
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- Figure 20: UK logistical services market value, 2013-17
- Road freight accounts for industry growth in 2017
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- Figure 21: UK logistical services market segmentation, by type, 2013-17
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- Figure 22: UK logistical services market segmentation, by type, 2013-17
- Road freight
- Market consolidates growth from 2015 in 2016
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- Figure 23: Annual road freight transport in the UK, 2012-16
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- Figure 24: Annual road freight transport in the UK, 2012-16
- Figure 25: Annual road freight transport in the UK, 2012-16
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- Figure 26: Annual road freight transport in the UK, 2012-16
- Level of international road freight declines again
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- Figure 27: Annual international road freight transport by UK registered vehicles, 2012-16
- Fourth successive annual growth in the amount of goods lifted in 2016...
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- Figure 28: Annual goods lifted in the UK, 2012-16, by commodity group
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- Figure 29: Annual goods lifted in the UK, 2012 and 2016, by commodity group
- Figure 30: Annual goods lifted in the UK, 2012-16, by region and country of origin
- ... but volume of goods lifted outward from and inward to the UK by UK-registered vehicles continue to decline
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- Figure 31: Annual goods lifted outward from and inward to the UK by UK-registered vehicles, 2012-16, by commodity group
- International goods lifted outward from and inward to the UK by foreign-registered vehicles reaches five-year high
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- Figure 32: International goods lifted outward from and Inward to the UK by foreign-registered HGVs, 2011-15, by European country
- 12% growth in 2016 leads to five-year high in goods moved in the UK
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- Figure 33: Annual goods moved in the UK, 2012-16, by commodity group
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- Figure 34: Annual goods moved in the UK, 2012 and 2016, by commodity group
- Figure 35: Annual goods moved in the UK, 2012-16, by region and country of origin
- Recent international performance continues to contrast with domestic market
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- Figure 36: Annual goods moved outward from and inward to the UK by UK registered vehicles, 2012-16, by commodity group
- Port (marine) freight
- Port freight traffic continues to decline
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- Figure 37: UK port freight traffic, by major and minor ports, 2012-16
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- Figure 38: UK port freight traffic, 2012-16
- Figure 39: UK major port container traffic, 2012-16, by size of container
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- Figure 40: UK major port container traffic, 2012 and 2016, by size of container
- Figure 41: International and domestic major and minor port freight traffic, by traffic direction, 2012-16
- Fall in dry bulk inward traffic drives overall fall in major port traffic in 2016
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- Figure 42: UK major port traffic, by commodity group, 2012-16
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- Figure 43: UK major port inward traffic, by commodity group, 2012 and 2016
- Figure 44: UK major port outward traffic, by commodity group, 2012 and 2016
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- Figure 45: International UK major port freight traffic, 2012-16, by commodity group and traffic direction
- Grimsby & Immingham represents busiest UK port in terms of tonnage
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- Figure 46: Major UK ports, top 10, by total tonnage, 2015 and 2016
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- Figure 47: Major UK ports, Top 10, by total tonnage, 2015 and 2016
- Dover now holds the most freight units and trade vehicles in the UK
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- Figure 48: Major UK ports, Top 10, by main freight units and trade vehicles, 2015 and 2016
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- Figure 49: Major UK ports, Top 10, by main freight units and trade vehicles, 2016
- Only fully cellular container vessels recorded annual growth in 2016
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- Figure 50: Number of ship arrivals at UK ports, by type and deadweight, 2012-1
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- Figure 51: Number of ship arrivals at UK ports, by type and deadweight, 2016
- Declining UK interest in large trading ships
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- Figure 52: UK interest in trading ships of 100 gross tons and over, by type of interest, 2012-16
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- Figure 53: UK interest in trading ships of 100 gross tons and over, by type of interest, 2012-16
- Non-trading vessels most commonly owned by the UK, but UK-owned ‘other’ dry cargo vessels carry the most freight
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- Figure 54: UK owned vessels of 100 gross tons and over, by type, at 31 December 2015 and 2016
- Rail freight
- Rate of decline in freight train movements slowed in 2016 compared to 2015...
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- Figure 55: Great Britain freight train movements, 2012-16
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- Figure 56: Great Britain freight train movements, 2012-16
- ... with the mass of freight goods carried also falling in 2016 but at a slower rate than 2015
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- Figure 57: Mass of freight goods carried on the Rail Network, by Type of Good, 2012/13-2016/17
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- Figure 58: Mass of freight goods carried on the rail network, by type of good, 2012/13-2016/17
- Volume of freight moved on rail network has fallen since 2013/14
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- Figure 59: Amount of freight moved on the rail network, by type, 2012/13-2016/17
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- Figure 60: Amount of freight moved on the rail network, by type, 2012/13 and 2016/17
- DB Cargo UK travels furthest for freight means
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- Figure 61: Actual freight train kilometres on Network Rail infrastructure, by operator, 2012-16
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- Figure 62: Actual freight train kilometres on Network Rail infrastructure, by operator, 2012 and 2016
- During the five-year period to 2015, the number of lorry journeys saved by rail freight peaked in 2014
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- Figure 63: Impact of rail freight on road haulage, 2011-15
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- Figure 64: Impact of rail freight on road haulage, 2011-15
- Air freight
- Mixed performance in the air freight market over the last five years
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- Figure 65: UK air freight, by aircraft configuration and area, 2012-16
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- Figure 66: UK air freight, by aircraft configuration, 2012-16
- Figure 67: UK air freight, by area, 2016
Market Trends
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- Key points
- Latest industry confidence index shows rise in confidence but customer-retention strategies are also on the rise
- E-commerce leading the development of a new logistical operations model
- Longer semi-trailers have reduced HGV mileage and emissions, and brought additional benefits to the industry
- Longer delays in filling driver vacancies, while practical LGV test pass rate remains only slightly above half
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- Figure 68: Number of practical LGV tests conducted and pass rate, 2012/13-2016/17, by gender
- Other trends
- Noticeable rise in the percentage of vehicles running empty in 2016
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- Figure 69: Vehicle percentage empty running and loading factors, 2012-16, by type and weight of vehicle
- Telematics
- Improved fuel efficiency supported by a decline in the average length of haul
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- Figure 70: Average length of haul, 2012-16, by type and weight of vehicle
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- Figure 71: Average length of haul, 2012-16, by type of vehicle
- Figure 72: Fuel consumption, 2012-16, by HGV vehicle type in Great Britain
Industry Structure
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- Key points
- Industry development
- Fall in the number of ‘mega’ deals but industry continues consolidating
- ‘Platooning’ could lead to cost savings and reductions in congestion and carbon emissions
- Dedicated training academy now available to whole industry
- Industry structure
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- Figure 73: Analysis of the changes in the structure of the freight transport by rail industry, 2013-17
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- Figure 74: Analysis of the changes in the structure of the freight transport by road industry, 2013-17
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- Figure 75: Analysis of the changes in the structure of the removal services industry, 2013-17
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- Figure 76: Analysis of the changes in the structure of the sea and coastal freight water transport industry, 2013-17
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- Figure 77: Analysis of the changes in the structure of the freight transport by inland waterway industry, 2013-17
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- Figure 78: Analysis of the changes in the structure of the freight transport by air industry, 2013-17
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- Figure 79: Analysis of the changes in the structure of the operation of warehousing and storage facilities industry, 2013-17
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- Figure 80: Analysis of the changes in the structure of the services incidental to water transportation industry, 2013-17
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- Figure 81: Analysis of the changes in the structure of the other transportation support activities industry, 2013-17
- Structure by employment
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- Figure 82: Analysis of the employment structure of the freight transport by rail industry, 2016-17
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- Figure 83: Analysis of the employment structure of the freight transport by road industry, 2016-17
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- Figure 84: Analysis of the employment structure of the removal services industry, 2016-17
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- Figure 85: Analysis of the employment structure of the sea and coastal freight water transport industry, 2016-17
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- Figure 86: Analysis of the employment structure of the freight transport by inland waterway industry, 2016-17
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- Figure 87: Analysis of the employment structure of the freight transport by air industry, 2016-17
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- Figure 88: Analysis of the employment structure of the operation of warehousing and storage facilities industry, 2016-17
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- Figure 89: Analysis of the employment structure of the services incidental to water transportation industry, 2016-17
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- Figure 90: Analysis of the employment structure of the other transportation support activities industry, 2016-17
- Structure by turnover
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- Figure 91: Analysis of the financial structure of the freight transport by rail industry, 2016-17
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- Figure 92: Analysis of the financial structure of the freight transport by road industry, 2016-17
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- Figure 93: Analysis of the financial structure of the removal services industry, 2016-17
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- Figure 94: Analysis of the financial structure of the sea and coastal freight water transport industry, 2016-17
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- Figure 95: Analysis of the financial structure of the freight transport by inland waterway industry, 2016-17
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- Figure 96: Analysis of the financial structure of the freight transport by air industry, 2016-17
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- Figure 97: Analysis of the financial Structure of the operation of warehousing and storage facilities industry, 2016-17
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- Figure 98: Analysis of the financial structure of the services incidental to water transportation industry, 2016-17
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- Figure 99: Analysis of the financial structure of the other transportation support activities industry, 2016-17
Company Profiles
Canute Distribution
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- Figure 100: Financial analysis of Canute Distribution, 2012-16
- Company strategy
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CEVA Logistics (formerly TNT Logistics)
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- Figure 101: Financial analysis of CEVA Logistics, 2011-15
- Company strategy
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DHL Supply Chain
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- Figure 102: Financial analysis of DHL Supply Chain, 2012-16
- Company strategy
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Eddie Stobart
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- Figure 103: Financial analysis of Eddie Stobart, 2012-16
- Company strategy
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Gist Limited
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- Figure 104: Financial analysis of Gist Limited, 2012-16
- Company strategy
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HOYER Petrolog UK (Formerly HOYER UK Limited)
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- Figure 105: Financial analysis of HOYER Petrolog UK Limited, 2012-16
- Company strategy
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Kuehne + Nagel
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- Figure 106: Financial analysis of Kuehne + Nagel, 2012-16
- Company strategy
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Lloyd Fraser Group
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- Figure 107: Financial analysis of Lloyd Fraser Holdings Company Ltd, 2011-15
- Company strategy
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NFT Distribution Holdings
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- Figure 108: Financial analysis of NFT Distribution Holdings, 2012-16
- Company strategy
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Wincanton Holdings
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- Figure 109: Financial analysis of Wincanton Holdings, 2013-17
- Company strategy
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- Figure 110: Profiled companies’ combined turnover, 2012-16
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Forecast
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- Key points
- Stable growth anticipated until 2022
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- Figure 111: UK logistical services market value forecast, 2018-22
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- Figure 112: UK logistical services market value forecast, 2018-22
- Road freight to continue to dominate market value
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- Figure 113: UK logistical services market segmentation forecast, by type, 2018-22
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- Figure 114: UK logistical services market segmentation forecast, by type, 2018 and 2022
- Retail e-commerce continues to shape and drive industry operations
- Integration of aspects of the ‘sharing economy’ could boost growth
- Solutions currently in development could reduce under-utilisation and congestion on the UK road network...
- ... with new UK road investment expected to aid road freight development
Further Sources and Contacts
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- Trade associations
- British International Freight Association (BIFA)
- European Logistics Association (ELA)
- Freight Transport Association (FTA)
- Road Haulage Association (RHA)
- Society of Motor Manufacturers and Traders (SMMT)
- The Chartered Institute of Logistics and Transport (CILT)
- United Kingdom Warehousing Association (UKWA)
- Trade magazines
- Cold Chain News
- Freight Industry Times
- Motor Transport
- Transport & Logistics
- Transport Monthly
- Transport News
- Trade exhibitions
- Commercial Vehicle Show 2018
- Freight by Water Conference 2017
- Freight in the City 2017
- IMHX 2019
- Seawork 2017
- Supply Chain Conference 2018
- Supply Chain Summit 2017
- The Richmond Supply Chain Forum 2018
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