Wednesday, Sep 28, 2022
International Finance
Featured Logistics

UK logistics reaches record levels on the back of expanding supply chains

UK logistics_IF_Image
But forwarders and shippers in the country are challenged by the delay in Smart Freight System

In the third quarter of 2020, demand for logistics and distribution in the UK has reached its record levels on the back of expanding supply chains. Cushman & Wakefield in its research has reported that the third quarter results have been the busiest with 16 million sq ft of space transacted. This is nearly double the ten-year average of 8 million sq ft of space for that period. 

Simon Lloyd, Head of Logistics and Industrial at Cushman & Wakefield in the Midlands, told the media, “The market trends accelerated by the pandemic continued to drive demand during Q3, and the Midlands region saw some 45% of the UK’s total take up, with both the East and West Midlands performing well. Robust take-up is fast eroding existing supply, with some regions and sub-markets now facing a shortage of suitable accommodation across certain size bands. Availability levels across the Midlands have decreased by over 15 percent, and speculative development has slowed, which means this imbalance could persist. There are signs that prime rent growth could return as a result, particularly for mid-box units.”

But the downside for the industry is that forwarders and shippers for businesses in the country faced another challenge when it was realised that the Smart Freight System will not be ready to meet the deadline on January 1, media reports said. It seems that businesses are heavily reliant on the system to ensure smooth flow of goods and services to the EU. It is reported that the UK government needs to fully understand the existing complexities within the logistics industry and the necessary coordination to use the Smart Freight System.

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.