Insights

Freight Matters: an insight into the UK freight industry

In 2022 the Department for Transport (DfT) published perhaps its most significant freight report for decades – ‘Future of Freight: a long-term plan’, which sets out some important priorities, opportunities and challenges for the sector. Delivering on those challenges will take a genuine partnership between government and industry.

The latest edition of our Freight Matters report explores these plans alongside providing insight and commentary on some of today’s most important freight topics including the future of freight, new and emerging technologies, and decarbonisation.

 

The route to zero emissions

Decarbonisation is high on everybody’s agenda. A popular approach is to prioritise the quick wins and transition car and van fleets to battery electric vehicles, giving the heavy goods vehicle market time to develop more options.

For heavier vehicles there has been a lot of focus on alternative fuel options as an interim measure to reduce or move away from diesel to the likes of Hydrotreated Vegetable Oil (HVO), Compressed Natural Gas (CNG) and Liquified Natural Gas (LNG). This will reduce carbon emissions but potentially means that additional infrastructure will be required for what may be an interim solution.

The reality is that companies may require different combinations of fuelling solutions depending on the types of operation being undertaken. It is therefore important that organisations start to educate themselves on the many solutions that are available and how they could be applied to their own transport fleet.

 

Embracing new technology: advanced air mobility

New and emerging technology, such as drones, electric vertical take-off and landing (eVTOL) aircraft) are not just on their way, they are here. In many ways freight and logistics is ahead of passenger mobility in terms of embracing and adopting technology and new ways of working. From an environmental, social and corporate governance perspective, goods movement using these expanding and disruptive technologies has clear environmental and social benefits.

As the framework for how this technology is governed and integrated into the airspace is established, and certified operations and aircraft are developed, the most significant remaining barriers to widespread use will be infrastructure-related, and whether their perceived safety can allow for public acceptance and utilisation.

 

Freight challenges

The freight and logistics industry is experiencing systemic and long-term challenges. Brexit, the pandemic, driver shortages, supply chain failures and decarbonisation have all meant freight has risen quickly up the political agenda.

The DfT’s Future of Freight plan outlines the government and sector’s joint response to these challenges. These interventions, whilst arguably long overdue, are a welcome approach to addressing key areas where there have been difficulties, namely around retention of skills, delivering logistics facilities in the right locations, and challenges associated with decarbonisation of the sector. As ever, it seems we have lots to look forward to but also lots to fix as well.

 

Click here to download our Freight Matters 2023 report.