Rising fuel costs driven by the Middle East conflict are piling pressure on the UK’s logistics sector, with warnings that consumers may ultimately feel the impact.
Business group Logistics UK said the ongoing disruption is continuing to push up the price of fuel and the cost of moving goods through the supply chain, adding strain to an industry already operating on tight margins.
With costs climbing across the sector, particularly for fuel, the organisation warned that the squeeze could translate into higher prices for customers and consumers.
“Logistics businesses traditionally work to incredibly narrow margins,” said chief executive Ben Fletcher, noting these are “often in low single digits”. As a result, firms are unable to absorb sustained increases and “must pass on the increased charges to their customers, and ultimately, consumers”.
He added that passing on costs is “not a route that our industry takes lightly” but is unavoidable given the “rapidly escalating costs” facing operators.
In response to the ongoing challenges, Logistics UK is offering practical support to its members through a series of webinars focused on navigating the disruption.
The first session, taking place on 22 April, will be led by Mr Fletcher and will examine the impact of the conflict on the logistics sector, as well as the organisation’s response. It will also provide businesses with an opportunity to share how current conditions are affecting them and what they expect in the months ahead.
A second webinar on 28 April, delivered in partnership with Portland Fuel and myAutomate, will focus specifically on managing rising fuel costs.
Industry experts will offer insights into fuel price volatility and market trends, alongside practical guidance on managing risk, purchasing fuel and using data and contracting strategies more effectively.
Attendees will also have the opportunity to put questions directly to the panel.
Alongside its support for members, Logistics UK said it remains in close contact with government as the situation develops.
“As the leading business group in the sector, Logistics UK is maintaining close contact with government throughout the conflict,” Mr Fletcher said, adding that the organisation is urging the Treasury to suspend the planned reversal of the fuel duty cut.
He stressed the importance of the sector to the wider economy, warning that rising operational costs risk feeding into inflation.
“Logistics businesses deliver everything that the country depends on every day, from medicines to manufacturing materials, and it is vital that they can continue doing so without driving inflation up through increased costs for their operations,” he said.
The warning comes as the logistics industry faces a period of significant change, with pressures from decarbonisation, new technology and global instability reshaping how goods move across supply chains.