Table of Contents
Executive Summary
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- The market
- Growth starts to slow in 2019 amid continued uncertainty
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- Figure 1: UK logistical services market value, 2015-2019, (£ billion)
- Road freight remains the main driver of value growth
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- Figure 2: UK logistical services market segmentation, by type, 2019, (£ billion)
- Slower growth expected until 2024
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- Figure 3: UK logistical services market value forecast, 2020-2024, (£ billion at 2019 prices)
- Companies and brands
- What we think
Issues and Insights
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- Customer demand and preference for ‘greener’ logistical services means those unwilling to adapt may lose business
- The facts
- The implications
- Despite its emergence as a vital source of business, some providers are not maximising the opportunities provided by e-commerce
- The facts
- The implications
The Market – What You Need to Know
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- Growth starts to slow in 2019 amid continued uncertainty
- Road freight remains the main driver of value growth
- Slower growth expected until 2024
Market Size
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- Growth starts to slow in 2019 amid continued uncertainty
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- Figure 4: UK logistical services market value, 2015-2019, (£ billion)
Market Segmentation
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- Road freight remains the main driver of value growth
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- Figure 5: UK logistical services market segmentation, by type, 2015-2019, (£ billion)
- Road freight
- Market sees improvement in goods lifted and moved in 2018
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- Figure 6: Annual road freight transport in the UK, 2014-18, (million tonnes lifted, billion tonnes kilometres moved and vehicle million kilometres travelled)
- Level of international road freight rises for third consecutive year in 2018
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- Figure 7: Annual international road freight transport by UK-registered vehicles, 2014-18, (million tonnes lifted and billion tonne kilometres moved)
- Small annual increase in the amount of goods lifted in 2018…
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- Figure 8: Annual goods lifted in the UK, 2014-18, by commodity group, (million tonnes)
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- Figure 9: Annual goods lifted in the UK, 2014-18, by region and country of origin, (million tonnes)
- ...with the volume of goods lifted both outward from and inward to the UK by UK-registered vehicles also rising in 2018
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- Figure 10: Annual goods lifted outward from and inward to the UK by UK-registered vehicles, 2014-18, by commodity group, (000 tonnes)
- International goods lifted outward from and inward to the UK by foreign-registered vehicles declines in 2017
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- Figure 11: International goods lifted outward from and inward to the UK by foreign-registered HGVs, 2013-17, by European country, (000 tonnes unloaded in the UK)
- Small 3% rise in goods moved in the UK in 2018
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- Figure 12: Annual goods moved in the UK, 2014-18, by commodity group, (billion tonne kilometres)
- Figure 13: Annual goods moved in the UK, 2014-18, by region and country of origin, (million tonne kilometres)
- International performance improves in 2018
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- Figure 14: Annual goods moved outward from and inward to the UK by UK-registered Vehicles, 2014-18, by commodity group, (million tonne kilometres)
- Port (marine) freight
- Port freight traffic rises for first time since 2014
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- Figure 15: UK port freight traffic, by major and minor ports, 2014-2018, (000 tonnes)
- Figure 16: International and domestic major and minor port freight traffic, by traffic direction, 2014-2018, (million tonnes)
- Rise in container and roll-on and off traffic drives growth in major port traffic
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- Figure 17: UK major port traffic, by commodity group, 2014-2018, (000 tonnes)
- Grimsby and Immingham represents busiest UK port in terms of tonnage
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- Figure 18: Major UK ports, top 10, by total tonnage, 2017 and 2018, (000 tonnes and % of total UK tonnage)
- Number of vessels arriving at UK ports falls to a five-year low in 2018
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- Figure 19: Number of ship arrivals at UK ports, by type and deadweight, 2018, (number of vessels)
- UK interest in large trading ships falls in 2018
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- Figure 20: UK interest in trading ships of 100 gross tonnes and over, by type of interest, 2014-2018, (deadweight million tonnage)
- 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 21: UK-owned vessels of 100 gross tonnes and over, by type, at 31 December 2017 and 2018, (number of vessels and gross tonnage in 000 tonnes)
- Rail freight
- Freight train movements rise for first time in five years
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- Figure 22: Great Britain freight train movements, 2014-2018, (number)
- Mass of freight goods rises for first time in five years
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- Figure 23: Mass of freight goods carried on the rail network, by type of good, 2014/15-2018/19, (million tonnes)
- Volume of freight moved on rail network rises for first time since 2013
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- Figure 24: Amount of freight moved on the rail network, by type, 2014/15 and 2018/19, (% of total billion net tonne kilometres)
- DB Cargo UK travels furthest for freight means
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- Figure 25: Actual freight train kilometres on Network Rail infrastructure, by operator, 2014-2018, (million kilometres)
- The number of lorry journeys saved by rail freight peaked in 2014, but distance travelled has since declined
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- Figure 26: Impact of rail freight on road haulage, 2013-2017, (number of equivalent HGV lorry journeys in millions and equivalent distance travelled in billion kilometres)
- Air freight
- Air freight market marks review period high in 2018
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- Figure 27: UK air freight, by aircraft configuration and area, 2014-2018, (tonnes)
Market Forecast
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- Slower growth expected until 2024
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- Figure 28: UK logistical services market value forecast, 2020-2024, (£ billion at 2019 prices)
- Rail freight to grow by greatest proportion
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- Figure 29: UK logistical services market segmentation forecast, by type, 2019-2023, (£ billion at 2018 prices)
- Some logistics companies expected to become retailers
- Container booking platforms could help ease ‘pain’ points for shipping lines
The Impact of the Economy
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- Annual GDP growth falls to six-year low in 2018 and continues to fall in 2019
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- Figure 30: Annual GDP growth rate, 2015 – 2019*, (% change)
Market Trends
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- Latest industry confidence index reaches all-time low
- Companies starting to proactively fight against skills shortage
- UK is home to the third most ‘attractive’ logistics market…
- … which is driving strong demand for warehouse space
- Other trends
- Second consecutive annual decline in the percentage of vehicles running empty
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- Figure 31: Vehicle percentage empty running, 2014-18, by type and weight of vehicle, (%)
- Average haul length on the rise, despite slight decline in the haul length of articulated vehicles
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- Figure 32: Average length of haul, 2014-18, by type of vehicle, (kilometres)
Market Drivers
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- Lack of definitive Brexit direction still disrupting industry plans
- Retail sales continue to grow, but at a slower rate
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- Figure 33: Retail sales trends, January 2017 – October 2019, (percentage volume change on same month in previous year, seasonally-adjusted)
- Diesel prices rise in 2019, while fuel duty remains frozen
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- Figure 34: Typical retail cost of fuel and the fuel duty level in the UK, 2015-19*, (pence per litre)
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- Figure 35: European petrol prices, 2019, (€ per litre)
- Figure 36: European diesel prices, 2019, (€ per litre)
Companies and Brands – What You Need to Know
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- Wincanton launches VAST to list available warehouse storage space and help improve sustainability
- DHL launches comparison and booking site for air and ocean freight services
Industry Structure
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- Industry development
- DPD Group leads list of top providers, whilst others look to increase market share
- Industry M&A and other major deals
- Changes in the structure of the industry
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- Figure 37: Analysis of the changes in the structure of the freight transport by rail industry, 2015-2019, (number of outlets and businesses)
- Figure 38: Analysis of the changes in the structure of the freight transport by road industry, 2015-2019, (number of outlets and businesses)
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- Figure 39: Analysis of the changes in the structure of the removal services industry, 2015-2019, (number of outlets and businesses)
- Figure 40: Analysis of the changes in the structure of the sea and coastal freight water transport industry, 2015-2019, (number of outlets and businesses)
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- Figure 41: Analysis of the changes in the structure of the freight transport by inland waterway industry, 2015-2019, (number of outlets and businesses)
- Figure 42: Analysis of the changes in the structure of the freight transport by air industry, 2015-2019, (number of outlets and businesses)
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- Figure 43: Analysis of the changes in the structure of the operation of warehousing and storage facilities industry, 2015-2019, (number of outlets and businesses)
- Figure 44: Analysis of the changes in the structure of the services incidental to water transportation industry, 2015-2019, (number of outlets and businesses)
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- Figure 45: Analysis of the changes in the structure of the cargo handling industry, 2015-2019, (number of outlets and businesses)
- Figure 46: Analysis of the changes in the structure of the other transportation support activities industry, 2015-2019, (number of outlets and businesses)
- Structure by employment
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- Figure 47: Analysis of the employment structure of the freight transport by rail industry, 2018 and 2019, (number of outlets and outlet employment size)
- Figure 48: Analysis of the employment structure of the freight transport by road industry, 2018 and 2019, (number of outlets and outlet employment size)
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- Figure 49: Analysis of the employment structure of the removal services industry, 2018 and 2019, (number of outlets and outlet employment size)
- Figure 50: Analysis of the employment structure of the sea and coastal freight water transport industry, 2018 and 2019, (number of outlets and outlet employment size)
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- Figure 51: Analysis of the employment structure of the freight transport by inland waterway industry, 2018 and 2019, (number of outlets and outlet employment size)
- Figure 52: Analysis of the employment structure of the freight transport by air industry, 2018 and 2019, (number of outlets and outlet employment size)
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- Figure 53: Analysis of the employment structure of the operation of warehousing and storage facilities industry, 2018 and 2019, (number of outlets and outlet employment size)
- Figure 54: Analysis of the employment structure of the services incidental to water transportation industry, 2018 and 2019, (number of outlets and outlet employment size)
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- Figure 55: Analysis of the employment structure of the cargo handling industry, 2018 and 2019, (number of outlets and outlet employment size)
- Figure 56: Analysis of the employment structure of the other transportation support activities industry, 2018 and 2019, (number of outlets and outlet employment size)
- Structure by turnover
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- Figure 57: Analysis of the financial structure of the freight transport by rail industry, 2018 and 2019, (£ 000 and % of total turnover)
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- Figure 58: Analysis of the financial structure of the freight transport by road industry, 2018 and 2019, (£ 000 and % of total turnover)
- Figure 59: Analysis of the financial structure of the removal services industry, 2018 and 2019, (£ 000 and % of total turnover)
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- Figure 60: Analysis of the financial structure of the sea and coastal freight water transport industry, 2018 and 2019, (£ 000 and % of total turnover)
- Figure 61: Analysis of the financial structure of the freight transport by inland waterway industry, 2018 and 2019, (£ 000 and % of total turnover)
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- Figure 62: Analysis of the financial structure of the freight transport by air industry, 2018 and 2019, (£ 000 and % of total turnover)
- Figure 63: Analysis of the financial structure of the operation of warehousing and storage facilities industry, 2018 and 2019, (£ 000 and % of total turnover)
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- Figure 64: Analysis of the financial structure of the services incidental to water transportation industry, 2018 and 2019, (£ 000 and % of total turnover)
- Figure 65: Analysis of the financial structure of the cargo handling industry, 2018 and 2019, (£ 000 and % of total turnover)
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- Figure 66: Analysis of the financial structure of the other transportation support activities industry, 2018 and 2019, (£ 000 and % of total turnover)
Competitive Strategies
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- Wincanton launches VAST to list available warehouse storage space and help improve sustainability
- DHL Supply Chain upgrades and increases its fleet size
- Kuehne + Nagel launches first online solution with a guaranteed lead time
- DHL launches comparison and booking site for air and ocean freight services
Company Profiles
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- CEVA Logistics
- Recent company activity
- Financial information
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- Figure 67: Financial analysis of CEVA Logistics, 2014-18, (£ million)
- DHL Supply Chain
- Recent company activity
- Financial information
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- Figure 68: Financial analysis of DHL Supply Chain, 2014-18, (£ million)
- Eddie Stobart
- Recent company activity
- Financial information
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- Figure 69: Financial analysis of Eddie Stobart, 2013-17, (£ million)
- Hoyer Petrolog
- Recent company activity
- Financial information
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- Figure 70: Financial analysis of Hoyer Petrolog Limited UK, 2014-18, (£ million)
- Kuehne + Nagel
- Recent company activity
- Financial information
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- Figure 71: Financial analysis of Kuehne + Nagel, 2014-18, (£ million)
- Wincanton Holdings
- Recent company activity
- Financial information
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- Figure 72: Financial analysis of Wincanton Holdings, 2014-18, (£ million)
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
- Trade events
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