Freight operators could save up to £250 per consignment under a proposed UK-EU trade agreement aimed at cutting border checks, reducing paperwork and easing supply chain pressures.
Logistics UK has welcomed reports that Britain and the EU have finalised a draft sanitary and phytosanitary (SPS) agreement, which could significantly reduce post-Brexit trading costs for logistics businesses.
The proposed deal would remove many routine checks and certification requirements on food, agricultural and plant products moving between the UK and EU.
Logistics UK chief executive Ben Fletcher described the development as "hugely positive news for British businesses", particularly freight operators facing additional administrative costs and delays.
According to the organisation's analysis, a comprehensive agreement could reduce export costs on affected agri-food goods by up to 8%, saving businesses between £150 and £250 per consignment.
The deal has also been predicted to deliver a £5.1 billion annual boost to the UK economy by removing trade friction and improving access to European markets.
Fletcher highlighted the potential benefits for groupage operators, which consolidate multiple smaller consignments into mixed loads and face individual charges on each shipment.
"This is particularly significant for groupage operators, which incur charges on every consignment within the mixed loads they carry," he said.
Reducing these charges could improve the economics of consolidated freight movements, particularly for operators handling frequent, smaller deliveries across international supply chains.
The proposed agreement could also bring operational benefits for distribution centres, warehouses and manufacturers that depend on predictable cross-border deliveries.
Fewer inspections and administrative requirements could help reduce delays, improve delivery scheduling and support more efficient stock movements.
The agreement would also simplify the movement of food, agricultural and plant products between Great Britain and Northern Ireland, where existing arrangements can create additional complexity for logistics providers.
Logistics UK believes reducing paperwork and border delays would improve supply chain efficiency while lowering costs for transport operators, retailers and manufacturers.
With the EU accounting for around 40% of UK exports, Fletcher said strengthening the trading relationship could provide significant opportunities for businesses throughout the logistics sector.
The draft arrangements are also expected to remove certain export health certificates, phytosanitary certificates and inspection charges currently required for affected goods.
However, the proposed SPS agreement would not eliminate customs controls, meaning freight operators would still need to comply with existing customs requirements.
Although the draft text has reportedly been agreed, further approval and implementation arrangements remain outstanding.
Recent reports suggest the agreement may not take effect until early 2028, despite earlier government guidance pointing towards a mid-2027 introduction.
Attention is now turning to the UK-EU summit on 20 November, where further progress on the agreement is expected.
Logistics UK is urging both sides to build on the negotiations by identifying additional opportunities to simplify international trade.
Fletcher emphasised the wider economic importance of the sector, noting that every £1 of gross value added generated directly by logistics supports a further £1.04 of economic activity.
The organisation represents more than 22,000 members across road, rail, sea and air freight, alongside warehousing, distribution and other supply chain operations.
It believes reducing trade barriers could unlock wider benefits for logistics businesses and their customers, supporting more efficient goods movements and stronger economic growth.
For freight and materials handling businesses, the proposed agreement could mark a significant step towards lower operating costs, more predictable deliveries and improved cross-border supply chain performance.