Logistics firms are reporting a brighter business outlook, despite continued pressure from fuel, transport and freight costs
Confidence across the UK logistics sector is beginning to recover after a turbulent start to the year, despite firms continuing to face high costs, recruitment problems and disruption to global shipping routes.
Logistics UK said its latest Logistics Performance Tracker shows businesses are becoming more positive about their prospects and financial health following pressures caused by the conflict in the Middle East and rising fuel and operating costs.
The quarterly survey, published on 20 August, combines publicly available data with responses from logistics businesses to assess the health of the sector and identify longer-term trends.
Results for the second quarter of 2026 show business outlook rising from 5.8 in the first quarter to 6.5 out of 10.
Respondents also reported a slight improvement in the financial health of their businesses, with the score increasing from 7.2 to 7.5.
Logistics UK chief executive Ben Fletcher said: “Logistics is absolutely critical to the UK economy.”
He said the industry plays an essential role in supplying businesses, schools, supermarkets and pharmacies, as well as supporting factories, hospitals and other parts of the economy.
Mr Fletcher said operators had continued to maintain services despite significant disruption and supply chain problems.
“After a difficult start to the year, it is encouraging that survey results for this quarter show that operators are starting to feel more confident about the state of business, with gradual signs of recovery beginning to show,” he said.
However, Logistics UK warned that businesses remain cautious about the months ahead as significant financial pressures continue.
Transport costs were among the biggest concerns, scoring just 11.5 out of 100 in the survey.
Some 57% of respondents said they expect costs to rise in the short to medium term.
Although this represented an improvement on the first quarter, Logistics UK said stronger demand across the economy could be undermined by tighter profit margins and growing financial pressure on road-based operators.
Many businesses in the sector are already working with very limited margins, leaving little room to absorb further increases in costs.
Freight rates are another major concern.
Around 70.4% of respondents expect international freight rates to rise, while 67.6% anticipate higher domestic rates.
Global shipping disruption also continues to weigh on the industry, with 26% of businesses reporting worse conditions than during the first quarter.
Logistics UK said the issue is particularly significant because the sector depends on an interconnected network of transport methods to move goods efficiently around the country and internationally.
Recruitment remains another major challenge.
Some 44% of respondents said they do not have enough professional drivers.
Almost a third also reported severe or very severe difficulties recruiting fitters, mechanics or technicians.
Mr Fletcher said the industry's role in keeping businesses and public services running could often go unnoticed because of the efficiency with which goods are moved.
“The efficiency of the logistics sector means its contribution to keeping everything running often goes unrecognised,” he said.
He said companies operating on narrow profit margins need continued access to skilled workers and transport corridors without excessive restrictions or costs.
Logistics UK is calling for a policy environment that recognises the sector's role in supporting economic growth.
The organisation also wants sustained public and private investment in infrastructure and closer collaboration between government and the logistics industry.
Mr Fletcher said such measures would give the sector the ability to become “a powerful catalyst for growth and resilience across the economy”.