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Logistical Services - UK - October 2017

“Businesses in the sector need to embrace new and innovative technological solutions to traditional challenges in order to reinforce business efficiency and remain competitive in an increasingly time-pressurised environment. Adopting new technologies can help move goods as efficiently as possible and companies could suffer if they fail to integrate new tech into operations - especially in a trading environment that is likely to become more challenging after the UK leaves the EU.”
- Lewis Cone, B2B Analyst

This report will explore the following key questions regarding logistical services in the UK:

  • What are the key determinants driving the industry?
  • Has the industry recovered alongside the economy since the financial crisis? What impact could Brexit have on performance?
  • How have government schemes influenced market demand and supply?
  • How have regulations and the threat of climate change changed the industry's approach?
  • What are the key issues the industry needs to address to diversify its service provision and continue to compete globally over the long term?
  • What does the future hold for UK logistical services?

 

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Table of contents

  1. Executive Summary

      • Market size and segmentation
        • More subdued growth expected in 2017
          • Figure 1: UK logistical services market value, 2013-17
        • Road freight drives market growth in 2017
          • 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
                  • 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...
                    • 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
                      • 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
                            • Figure 6: UK logistical services market value forecast, 2018-22
                          • What we think
                          • Key Insights

                              • 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

                                      • Definitions
                                        • Methodology
                                          • Abbreviations
                                            • Market positioning
                                              • The customer
                                                • The supplier
                                                  • Regulation
                                                  • UK Economy

                                                    • Key points
                                                      • Overview
                                                        • Figure 7: Forecast GDP development 2017-21
                                                        • Figure 8: UK GDP quarterly development, 2007-17
                                                      • Inflation
                                                        • Interest rates
                                                          • House prices
                                                            • Figure 9: UK house price changes, 2006-17
                                                          • Consumer spending
                                                            • Manufacturing
                                                              • Figure 10: UK manufacturing, 2014-17
                                                            • Business investment
                                                              • Figure 11: UK GFCF, 2004-17
                                                            • Imports
                                                              • Exports
                                                              • Market Factors

                                                                • Key points
                                                                  • Lowest half-year GDP growth since 2012 could impact logistical operations...
                                                                    • Figure 12: GDP growth rate, Q1 2013-Q2 2017
                                                                    • 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
                                                                      • 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
                                                                      • Figure 15: Typical retail cost of fuel and the fuel duty level in the UK, 2013-17*
                                                                      • Figure 16: Typical retail cost of fuel in the UK, by type of Fuel, 2013-17*
                                                                      • Figure 17: European petrol and diesel prices, 2017
                                                                      • 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

                                                                        • Key points
                                                                          • More subdued growth expected in 2017 as UK endures economic uncertainty
                                                                            • Figure 19: UK logistical services market value, 2013-17
                                                                            • Figure 20: UK logistical services market value, 2013-17
                                                                          • Road freight accounts for industry growth in 2017
                                                                            • Figure 21: UK logistical services market segmentation, by type, 2013-17
                                                                            • Figure 22: UK logistical services market segmentation, by type, 2013-17
                                                                          • Road freight
                                                                            • Market consolidates growth from 2015 in 2016
                                                                                • Figure 23: Annual road freight transport in the UK, 2012-16
                                                                                • Figure 24: Annual road freight transport in the UK, 2012-16
                                                                                • Figure 25: Annual road freight transport in the UK, 2012-16
                                                                                • Figure 26: Annual road freight transport in the UK, 2012-16
                                                                              • Level of international road freight declines again
                                                                                • 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...
                                                                                • Figure 28: Annual goods lifted in the UK, 2012-16, by commodity group
                                                                                • 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
                                                                                • 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
                                                                                • 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
                                                                                • Figure 33: Annual goods moved in the UK, 2012-16, by commodity group
                                                                                • 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
                                                                                • 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
                                                                                  • Figure 37: UK port freight traffic, by major and minor ports, 2012-16
                                                                                  • Figure 38: UK port freight traffic, 2012-16
                                                                                  • Figure 39: UK major port container traffic, 2012-16, by size of container
                                                                                  • 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
                                                                                  • Figure 42: UK major port traffic, by commodity group, 2012-16
                                                                                  • 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
                                                                                  • 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
                                                                                  • Figure 46: Major UK ports, top 10, by total tonnage, 2015 and 2016
                                                                                  • 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
                                                                                  • Figure 48: Major UK ports, Top 10, by main freight units and trade vehicles, 2015 and 2016
                                                                                  • 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
                                                                                  • Figure 50: Number of ship arrivals at UK ports, by type and deadweight, 2012-1
                                                                                  • Figure 51: Number of ship arrivals at UK ports, by type and deadweight, 2016
                                                                                • Declining UK interest in large trading ships
                                                                                  • Figure 52: UK interest in trading ships of 100 gross tons and over, by type of interest, 2012-16
                                                                                  • 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
                                                                                  • 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...
                                                                                    • Figure 55: Great Britain freight train movements, 2012-16
                                                                                    • 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
                                                                                    • Figure 57: Mass of freight goods carried on the Rail Network, by Type of Good, 2012/13-2016/17
                                                                                    • 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
                                                                                    • Figure 59: Amount of freight moved on the rail network, by type, 2012/13-2016/17
                                                                                    • 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
                                                                                    • Figure 61: Actual freight train kilometres on Network Rail infrastructure, by operator, 2012-16
                                                                                    • 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
                                                                                    • Figure 63: Impact of rail freight on road haulage, 2011-15
                                                                                    • 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
                                                                                      • Figure 65: UK air freight, by aircraft configuration and area, 2012-16
                                                                                      • Figure 66: UK air freight, by aircraft configuration, 2012-16
                                                                                      • Figure 67: UK air freight, by area, 2016
                                                                                  • Market Trends

                                                                                    • 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
                                                                                                • 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
                                                                                                  • 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
                                                                                                    • Figure 70: Average length of haul, 2012-16, by type and weight of vehicle
                                                                                                    • 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

                                                                                                  • 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
                                                                                                                • Figure 73: Analysis of the changes in the structure of the freight transport by rail industry, 2013-17
                                                                                                                • Figure 74: Analysis of the changes in the structure of the freight transport by road industry, 2013-17
                                                                                                                • Figure 75: Analysis of the changes in the structure of the removal services industry, 2013-17
                                                                                                                • Figure 76: Analysis of the changes in the structure of the sea and coastal freight water transport industry, 2013-17
                                                                                                                • Figure 77: Analysis of the changes in the structure of the freight transport by inland waterway industry, 2013-17
                                                                                                                • Figure 78: Analysis of the changes in the structure of the freight transport by air industry, 2013-17
                                                                                                                • Figure 79: Analysis of the changes in the structure of the operation of warehousing and storage facilities industry, 2013-17
                                                                                                                • Figure 80: Analysis of the changes in the structure of the services incidental to water transportation industry, 2013-17
                                                                                                                • Figure 81: Analysis of the changes in the structure of the other transportation support activities industry, 2013-17
                                                                                                              • Structure by employment
                                                                                                                • Figure 82: Analysis of the employment structure of the freight transport by rail industry, 2016-17
                                                                                                                • Figure 83: Analysis of the employment structure of the freight transport by road industry, 2016-17
                                                                                                                • Figure 84: Analysis of the employment structure of the removal services industry, 2016-17
                                                                                                                • Figure 85: Analysis of the employment structure of the sea and coastal freight water transport industry, 2016-17
                                                                                                                • Figure 86: Analysis of the employment structure of the freight transport by inland waterway industry, 2016-17
                                                                                                                • Figure 87: Analysis of the employment structure of the freight transport by air industry, 2016-17
                                                                                                                • Figure 88: Analysis of the employment structure of the operation of warehousing and storage facilities industry, 2016-17
                                                                                                                • Figure 89: Analysis of the employment structure of the services incidental to water transportation industry, 2016-17
                                                                                                                • Figure 90: Analysis of the employment structure of the other transportation support activities industry, 2016-17
                                                                                                              • Structure by turnover
                                                                                                                • Figure 91: Analysis of the financial structure of the freight transport by rail industry, 2016-17
                                                                                                                • Figure 92: Analysis of the financial structure of the freight transport by road industry, 2016-17
                                                                                                                • Figure 93: Analysis of the financial structure of the removal services industry, 2016-17
                                                                                                                • Figure 94: Analysis of the financial structure of the sea and coastal freight water transport industry, 2016-17
                                                                                                                • Figure 95: Analysis of the financial structure of the freight transport by inland waterway industry, 2016-17
                                                                                                                • Figure 96: Analysis of the financial structure of the freight transport by air industry, 2016-17
                                                                                                                • Figure 97: Analysis of the financial Structure of the operation of warehousing and storage facilities industry, 2016-17
                                                                                                                • Figure 98: Analysis of the financial structure of the services incidental to water transportation industry, 2016-17
                                                                                                                • Figure 99: Analysis of the financial structure of the other transportation support activities industry, 2016-17
                                                                                                            • Company Profiles

                                                                                                              • Canute Distribution

                                                                                                                    • Figure 100: Financial analysis of Canute Distribution, 2012-16
                                                                                                                  • Company strategy
                                                                                                                  • CEVA Logistics (formerly TNT Logistics)

                                                                                                                        • Figure 101: Financial analysis of CEVA Logistics, 2011-15
                                                                                                                      • Company strategy
                                                                                                                      • DHL Supply Chain

                                                                                                                            • Figure 102: Financial analysis of DHL Supply Chain, 2012-16
                                                                                                                          • Company strategy
                                                                                                                          • Eddie Stobart

                                                                                                                                • Figure 103: Financial analysis of Eddie Stobart, 2012-16
                                                                                                                              • Company strategy
                                                                                                                              • Gist Limited

                                                                                                                                    • Figure 104: Financial analysis of Gist Limited, 2012-16
                                                                                                                                  • Company strategy
                                                                                                                                  • HOYER Petrolog UK (Formerly HOYER UK Limited)

                                                                                                                                        • Figure 105: Financial analysis of HOYER Petrolog UK Limited, 2012-16
                                                                                                                                      • Company strategy
                                                                                                                                      • Kuehne + Nagel

                                                                                                                                            • Figure 106: Financial analysis of Kuehne + Nagel, 2012-16
                                                                                                                                          • Company strategy
                                                                                                                                          • Lloyd Fraser Group

                                                                                                                                                • Figure 107: Financial analysis of Lloyd Fraser Holdings Company Ltd, 2011-15
                                                                                                                                              • Company strategy
                                                                                                                                              • NFT Distribution Holdings

                                                                                                                                                    • Figure 108: Financial analysis of NFT Distribution Holdings, 2012-16
                                                                                                                                                  • Company strategy
                                                                                                                                                  • Wincanton Holdings

                                                                                                                                                        • Figure 109: Financial analysis of Wincanton Holdings, 2013-17
                                                                                                                                                      • Company strategy
                                                                                                                                                        • Figure 110: Profiled companies’ combined turnover, 2012-16
                                                                                                                                                    • Forecast

                                                                                                                                                      • Key points
                                                                                                                                                        • Stable growth anticipated until 2022
                                                                                                                                                            • Figure 111: UK logistical services market value forecast, 2018-22
                                                                                                                                                            • Figure 112: UK logistical services market value forecast, 2018-22
                                                                                                                                                          • Road freight to continue to dominate market value
                                                                                                                                                            • Figure 113: UK logistical services market segmentation forecast, by type, 2018-22
                                                                                                                                                            • 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

                                                                                                                                                                  • 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

                                                                                                                                                                                                                Companies Covered

                                                                                                                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                                Logistical Services - UK - October 2017

                                                                                                                                                                                                                US $1,321.06 (Excl.Tax)