Welcome to the January issue of Logistics Insight magazine, a quarterly in-depth study of the logistics industry. In our front cover story we see that The Rhenus Group and Shell will be sharing ideas more closely in future in order to forge ahead with decarbonising goods traffic on the roads. Both companies are working on a joint strategy in order to significantly reduce CO2 emissions in the long term. The partners are not only connected to each other through their long- standing business relationship, but also their efforts to become climate-neutral companies.
The pandemic, lockdowns, and supply chain issues of the past two years have made it abundantly clear that warehousing and industrial logistics facilities are critical to the UK’s infrastructure. Alongside the road, rail, air-freight and port facilities, industrial warehousing and logistics are essential to moving goods around the country. As an ‘economic powerhouse’, the industrial and logistics sector generates economic benefits, including £232 billion of GVA (gross value added) – a 14% share of total economy – and 2.8 million industrial and logistics jobs in England.
UK commercial vehicle (CV) production was buoyant during 2022, with output in October at the highest level for the month since 2019, resulting in the tenth consecutive month of growth this year. Exports continued their double-digit rise, increasing by 50.2% to 5,905 units thanks to strong demand from overseas markets, with the vast majority (94.5%) destined for Europe. This is evidence of how Britain’s CV manufacturers’ continued success is contingent on suitable trading terms, and a globally competitive business framework is needed to bolster operator confidence.
The year ended in somewhat anti-climactic fashion for long-term ocean freight rates, with the latest data from the Xeneta Shipping Index (XSI®) showing a decline of just 0.1%. Following on from a steep 5.7% month-on-month fall in November, and with weak spot rates defining the market, the development is a largely positive one for ocean carriers. The XSI® remains 70% up year-on-year, after a strong start to 2022, as port congestion and other disruptions clogged up supply chains, while driving up costs.
Verdant Regeneration has secured outline planning application for the redevelopment of the 200-acre New Stanton Park, J.25 M1, with the potential to deliver up to 4,000 jobs. Verdant Regeneration submitted an outline planning application in late 2021 for the redevelopment of part of the former Stanton iron works, to be known as New Stanton Park, with the scheme set to deliver c.2.6 million sq ft of new build high quality warehouse and industrial space, having the ability to deliver a single building in excess of c.1 million sq ft.
We salute the logistics industry, which has kept goods moving across the country through thick and thin. Enjoy reading the magazine.