Table of Contents
Overview
-
- What you need to know
- Covered in this Report
Executive Summary
-
- The market
- Growth expected in 2018 despite ongoing economic uncertainty
-
- Figure 1: UK logistical services market value, 2014-18, (£ billion)
- Road freight drives industry growth in 2018
-
- Figure 2: UK logistical services market segmentation, by type, 2014-18, (£ billion)
- Stable growth anticipated until 2023
-
- Figure 3: UK logistical services market value forecast, 2019-23, (£ billion at 2018 prices)
- Companies and brands
- What we think
Issues and Insights
-
- Use of technology could help dampen impact of Brexit and workforce shortages
- The facts
- The implications
- Changes to transport strategy will affect business costs and vehicle usage
- The facts
- The implications
The Market – What You Need to Know
-
- Growth expected in 2018 despite ongoing economic uncertainty
- Road freight drives industry growth in 2018
- Stable growth anticipated to 2023
Market Size
-
- Growth expected in 2018 despite ongoing economic uncertainty
-
- Figure 4: UK logistical services market value, 2014-18, (£ billion)
Market Segmentation
-
- Road freight drives industry growth in 2018
-
- Figure 5: UK logistical services market segmentation, by type, 2014-18, (£ billion)
- Road freight
- Market records fall in goods lifted and moved in 2017
-
- Figure 6: Annual road freight transport in the UK, 2013-17, (million tonnes lifted, billion tonnes kilometres moved and vehicle million kilometres travelled)
- Level of international road freight shows improvement in 2017
-
- Figure 7: Annual international road freight transport by UK-registered vehicles, 2013-17, (million tonnes lifted and billion tonne kilometres moved)
- Second successive annual decline in the amount of goods lifted in 2017…
-
- Figure 8: Annual goods lifted in the UK, 2013-17, by commodity group, (million tonnes)
-
- Figure 9: Annual goods lifted in the UK, 2013-17, by region and country of origin, (million tonnes)
- ...but the volume of goods lifted inward to the UK by UK-registered vehicles rose in 2017
-
- Figure 10: Annual goods lifted outward from and inward to the UK by UK-registered vehicles, 2013-17, by commodity group, (000 tonnes)
- International goods lifted outward from and inward to the UK by foreign-registered vehicles reaches five-year high
-
- Figure 11: International goods lifted outward from and inward to the UK by foreign-registered HGVs, 2012-16, by European country, (000 tonnes unloaded in the UK)
- Small 1% decline in the goods moved in the UK in 2017
-
- Figure 12: Annual goods moved in the UK, 2013-17, by commodity group, (billion tonne kilometres)
- Figure 13: Annual goods moved in the UK, 2013-17, by region and country of origin, (million tonne kilometres)
- Recent international performance continues to contrast with domestic market
-
- Figure 14: Annual goods moved outward from and inward to the UK by UK-registered vehicles, 2013-17, by commodity group, (million tonne kilometres)
- Port (marine) freight
- Port freight traffic continues to decline
-
- Figure 15: UK port freight traffic, by major and minor ports, 2013-17, (000 tonnes)
- Figure 16: International and domestic major and minor port freight traffic, by traffic direction, 2013-17, (million tonnes)
- Fall in dry bulk traffic drives decline in major port traffic in 2017
-
- Figure 17: UK major port traffic, by commodity group, 2013-17, (000 tonnes)
- Grimsby & Immingham represents busiest UK port in terms of tonnage
-
- Figure 18: Major UK ports, top 10, by total tonnage, 2016 and 2017, (000 tonnes and % of total UK tonnage)
- Number of vessels arriving at UK ports fell in 2017
-
- Figure 19: Number of ship arrivals at UK ports, by type and deadweight, 2013-17, (number of vessels)
- UK interest in large trading ships rises for the first time in five years
-
- Figure 20: UK interest in trading ships of 100 gross tons and over, by type of interest, 2013-17, (deadweight million tonnage)
- Non-trading vessels most commonly owned by the UK, but UK-owned ‘other’ dry cargo vessels carry the most freight
-
- Figure 21: UK-owned vessels of 100 gross tons and over, by type, at 31 December 2016 and 2017, (number of vessels and gross tonnage in 000 tons)
- Rail freight
- Fourth year of decline in freight train movements recorded in 2017
-
- Figure 22: Great Britain freight train movements, 2013-17, (number)
- Mass of freight goods carried continues to fall
-
- Figure 23: Mass of freight goods carried on the rail network, by type of good, 2013/14-2017/18, (million tonnes)
- Volume of freight moved on rail network has fallen since 2013/14
-
- Figure 24: Amount of freight moved on the rail network, by type, 2013/14-2017/18, (billion net tonne kilometres)
- DB Cargo UK travels furthest for freight means
-
- Figure 25: Actual freight train kilometres on network rail infrastructure, by operator, 2013-17, (million kilometres)
- In the five-year period to 2016, the number of lorry journeys saved by rail freight peaked in 2014
-
- Figure 26: Impact of rail freight on road haulage, 2012-16, (number of equivalent HGV lorry journeys in millions and equivalent distance travelled in billion kilometres)
- Air freight
- Air freight market marks five-year high level in 2017
-
- Figure 27: UK air freight, by aircraft configuration and area, 2013-17, (tonnes)
Market Forecast
-
- Stable growth anticipated until 2023
-
- Figure 28: UK logistical services market value forecast, 2019-23, (£ billion at 2018 prices)
- Road freight set to drive market growth, though recruitment and capacity could limit development
-
- Figure 29: UK logistical services market segmentation forecast, by type, 2019-23, (£ billion at 2018 prices)
- E-commerce growth continues to provide storage and distribution challenges
The Impact of the Economy
-
- GDP growth rebounds in Q2 but challenges remain
-
- Figure 30: GDP growth rate, Q2 2014-Q2 2018, (% change on previous quarter)
Market Trends
-
- Latest industry confidence index shows fall in confidence with market conditions expected to get more difficult
- Industry-wide recruitment and staff retention problems continue to restrict growth
-
- Figure 31: Number of practical LGV tests conducted and pass rate, 2013/14-2017/18, by gender, (% pass rate and number of practical tests)
- Other trends
- Demand for logistics space reaches high in 2018 as online sales force storage changes
- Slight decline in the percentage of vehicles running empty in 2017
-
- Figure 32: Vehicle percentage empty running and loading factors, 2013-17, by type and weight of vehicle, (%)
- Average haul length on the rise, with pledges to improve fuel efficiency to reduce environmental impact
-
- Figure 33: Average length of haul, 2013-17, by type and weight of vehicle, (kilometres)
Market Drivers
-
- Threat of a no-deal Brexit generates uncertainty
- Retail sales continue to grow in value, maintaining demand for logistical services
-
- Figure 34: Retail sales trends, 2016-18, (percentage volume change on same month in previous year, seasonally-adjusted)
- Fuel prices rise in 2018 to date, but fuel duty will remain constant until 2019
-
- Figure 35: Typical retail cost of fuel and the fuel duty level in the UK, 2014-18*, (pence per litre)
-
- Figure 36: European petrol prices, 2018, (€ per litre)
- Figure 37: European diesel prices, 2018, (€ per litre)
- Skills and driver shortage continue to threaten the industry’s ability to respond to growing services demand
Companies and Brands – What You Need to Know
-
- Interest in industry assets remains high among investors as consolidation continues
- Providers are seeking to digitalise their operations
Industry Structure
-
- Industry development
- Interest in industry assets remains high among investors as consolidation continues
- Changes in the structure of the industry
-
- Figure 38: Analysis of the changes in the structure of the freight transport by rail industry, 2013-17, (number of outlets and businesses)
- Figure 39: Analysis of the changes in the structure of the freight transport by road industry, 2013-17, (number of outlets and businesses)
-
- Figure 40: Analysis of the changes in the structure of the removal services industry, 2013-2017, (number of outlets and businesses)
- Figure 41: Analysis of the changes in the structure of the sea and coastal freight water transport industry, 2013-17, (number of outlets and businesses)
-
- Figure 42: Analysis of the changes in the structure of the freight transport by inland waterway industry, 2013-17, (number of outlets and businesses)
- Figure 43: Analysis of the changes in the structure of the freight transport by air industry, 2013-17, (number of outlets and businesses)
-
- Figure 44: Analysis of the changes in the structure of the operation of warehousing and storage facilities industry, 2013-17, (number of outlets and businesses)
- Figure 45: Analysis of the changes in the structure of the services incidental to water transportation industry, 2013-17, (number of outlets and businesses)
-
- Figure 46: Analysis of the changes in the structure of the other transportation support activities industry, 2013-17, (number of outlets and businesses)
- Structure by employment
-
- Figure 47: Analysis of the employment structure of the freight transport by rail industry, 2016-17, (number of outlets and outlet employment size)
- Figure 48: Analysis of the employment structure of the freight transport by road industry, 2016-17, (number of outlets and outlet employment size)
-
- Figure 49: Analysis of the employment structure of the removal services industry, 2016-17, (number of outlets and outlet employment size)
- Figure 50: Analysis of the employment structure of the sea and coastal freight water transport industry, 2016-17, (number of outlets and outlet employment size)
-
- Figure 51: Analysis of the employment structure of the freight transport by inland waterway industry, 2016-17, (number of outlets and outlet employment size)
- Figure 52: Analysis of the employment structure of the freight transport by air industry, 2016-17, (number of outlets and outlet employment size)
-
- Figure 53: Analysis of the employment structure of the operation of warehousing and storage facilities industry, 2016-17, (number of outlets and outlet employment size)
- Figure 54: Analysis of the employment structure of the services incidental to water transportation industry, 2016-17, (number of outlets and outlet employment size)
-
- Figure 55: Analysis of the employment structure of the other transportation support activities industry, 2016-17, (number of outlets and outlet employment size)
- Structure by turnover
-
- Figure 56: Analysis of the financial structure of the freight transport by rail industry, 2016-17, (£ 000 and % of total turnover)
-
- Figure 57: Analysis of the financial structure of the freight transport by road industry, 2016-17, (£ 000 and % of total turnover)
- Figure 58: Analysis of the financial structure of the removal services industry, 2016-17, (£ 000 and % of total turnover)
-
- Figure 59: Analysis of the financial structure of the sea and coastal freight water transport industry, 2016-17, (£ 000 and % of total turnover)
- Figure 60: Analysis of the financial structure of the freight transport by inland waterway industry, 2016-17, (£ 000 and % of total turnover)
-
- Figure 61: Analysis of the financial structure of the freight transport by air industry, 2016-17, (£ 000 and % of total turnover)
- Figure 62: Analysis of the financial structure of the operation of warehousing and storage facilities industry, 2016-17, (£ 000 and % of total turnover)
-
- Figure 63: Analysis of the financial structure of the services incidental to water transportation industry, 2016-17, (£ 000 and % of total turnover)
- Figure 64: Analysis of the financial structure of the other transportation support activities industry, 2016-17, (£ 000 and % of total turnover)
Competitive Strategies
-
- Providers are seeking to digitalise their operations
- The e-commerce boom is reshaping fulfilment services
Company Profiles
-
- CEVA Logistics
- Recent company activity
- Financial information
-
- Figure 65: Financial analysis of CEVA Logistics, 2012-16, (£ million)
- DHL Supply Chain
- Recent company activity
- Financial information
-
- Figure 66: Financial analysis of DHL Supply Chain, 2013-17, (£ million)
- Eddie Stobart
- Recent company activity
- Financial information
-
- Figure 67: Financial analysis of Eddie Stobart, 2013-17, (£ million)
- Hoyer Petrolog
- Recent company activity
- Financial information
-
- Figure 68: Financial analysis of Hoyer Petrolog Limited UK, 2013-17, (£ million)
- Kuehne + Nagel
- Recent company activity
- Financial information
-
- Figure 69: Financial analysis of Kuehne + Nagel, 2013-17, (£ million)
- Wincanton Holdings
- Recent company activity
- Financial information
-
- Figure 70: Financial analysis of Wincanton Holdings, 2014-18, (£ million)
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Methodology
Further Sources and Contacts
-
- 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 Monthly
- Transport News
- Trade events
- Commercial Vehicle Show 2019
- Future Logistics Expo 2018
- Leading Logistics – Overcoming the Skills Shortage 2018
- IMHX 2019
- Seawork 2019
- Supply Chain Conference
- The Richmond Supply Chain Forum 2018
Back to top