The third quarter of the year has recorded a strong demand for UK logistics and distribution space on the back of expansion in supply chains. Now retailers and third-party logistics companies are stepping up their efforts in expansion plans despite the pandemic. However, there seems to be chaos in the industry with looming uncertainty over Brexit changes.
It is reported that 16 million sq ft of space was transacted in the third quarter of the year, which points to nearly double the ten-year average. The findings were part of a study published by Cushman & Wakefield. The findings show that the take up time for the first nine months of the year to October recorded 35.5 million sq ft. This had excluded the 3.7 million sq ft of short-term deals. But the industry has been fearing ‘chaotic scenes’ as supply chains have stretched in recent months.
More recently, Logistics UK had called for support for enhancing the rail freight network. It is important for the UK government to meet the needs of the industry to protect and enhance opportunities for rail freight. These fundamental changes are anticipated to collectively support the economy and the industry. Policy Manager of Multimodal at Logistics UK, Zoe McLernon, said: “Rail freight has played a vital role in supporting the UK economy and society through the Covid-19 pandemic; now, as business focuses on economic recovery and decarbonised transport operations, it is vital that we create the right environment for rail freight to thrive.”
In April, UK logistics company Clipper attracted significant interest from buyout companies with a rising trend in ecommerce. The coronavirus pandemic has encouraged people to make a dramatic shift from physical stories to online shopping, thereby creating a surge in supply chains demand.