🕒 Article read time: 2 minutes
Incoming Transport Minister Heidi Alexander must prioritise logistics to support growth, says Logistics UK CEO
Following the resignation of Transport Secretary Louise Haigh MP, Logistics UK, one of the UK’s biggest business groups and the only organisation which represents all of logistics, says the incoming Secretary of State, Heidi Alexander MP, must seize the opportunity to drive Labour’s growth mission by prioritising logistics and acknowledging its foundational role in the economy.
Logistics UK Chief Executive David Wells OBE outlines the opportunity, “Logistics is fundamental to our economy, our way of life and the nation’s prosperity. Nothing moves without logistics: it supplies our hospitals, schools, factories and shops with everything they need, everywhere, everyday.
“The sector contributes £185 billon to the economy every year and employs 8% of the UK workforce, and research from Oxford Economics shows that by establishing the right partnerships, regulations and investment for logistics, the government can deliver productivity gains that will boost the UK economy by up to £8 billion per year by 20301.
“But congestion and delays, friction at our borders, and a lack of public investment over time is making UK logistics less efficient. The World Bank Logistics Productivity Index shows that the UK has slipped from fourth in the world to 19th in the last 10 years.
“Frustratingly, by appointing herself ‘Passenger in Chief’ Louise Haigh failed to recognise the role of commercial transport in delivering the government’s top growth mission, or how to leverage logistics and supply chains to achieve this.
“The vision for the Integrated National Transport Strategy, launched on 28 November, was not integrated as it did not include logistics, a major user and provider of our transport networks.
“Heidi Alexander as the new Secretary of State for Transport has a huge opportunity to address the decline in logistics productivity, drive growth and secure the sector’s place in the forthcoming Industrial Strategy, including through a genuinely integrated transport strategy that meets the needs of the travelling public while facilitating the efficient movement of freight.
“Logistics UK has identified the key transport corridors and critical routes for investment and is pressing the Treasury and the Department for Transport to better identify the UK’s strategic logistics network and use this as the basis of a 30-year infrastructure strategy for freight to turbocharge growth across the whole economy.”
Published On: 05/12/2024 15:00:00
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News In Brief
Tis the season to be a van driver... over 1.3 billion parcels to be delivered this Christmas
FedEx forecasts that parcel carriers will collectively distribute 1.29 billion shipments across the UK between October and December 2024, 10.9% more than in the same period in 2023.
The independent study was conducted by Effigy Consulting, which analysed its courier, express and parcels (CEP) database with 500,000 data points on more than 300 carriers in 41 countries.
The data shows a significant increase on the UK figures for 2023, up from 1.17bn parcels to 1.29bn in 2024.
The UK will be the busiest market for parcels this peak season, representing 21% of the total deliveries made, equating to 12 parcels per person across the UK and Europe.
Germany and France will be the second and third busiest markets, with Germany accounting for 17% (1.1 billion) and France making up 8.4% (524 million) of the total parcels delivered across Europe.
This growth is being driven by a rise in e-commerce which accounts for nearly 70% of shipments going directly to consumers across the European market.
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