23rd January 2025
“Emerging planning, energy and infrastructure policy is placing logistics at its heart in a way the sector hasn’t seen for years. That, alongside the drive for sustainable development and innovative, streamlined supply chain solutions, suggests that the sector should be able to look to an exciting and productive 2025, and beyond.”
As we look ahead to 2025, here’s a quick reminder of the key impacts of the UK Government’s Autumn 2024 Budget for the logistics sector:
Logistics UK has published its Logistics Report Summary 2024. In related news, Logistics UK’s Logistics Performance Tracker Q3 2024 results reveal resilience in financial performance of companies in the sector, but restrained confidence in business conditions, and pessimism towards the UK economic outlook for the next six months. (Road congestion, delivery times, and the cost of living are expected to remain issues in the short term.)
The DfT has announced the winners of a £1.4 million competition to transform the transport sector, grow the economy and inspire innovation.
Also in DfT news, the department is developing a strategy which will set the high-level direction for how transport should be designed, built and operated in England over the next 10 years.
The DfT has also published new research on the effect of uncertainties in the delivery, scope and timing of major transport infrastructure on land development, which can cause friction within the land development market.
The Global Centre of Rail Excellence has announced a series of collaborations to enhance delivery of rail infrastructure, including through use of artificial intelligence (AI).
A new freight service has been announced between Cardiff Airport and China.
Transport Secretary Louise Haigh has addressed a UK Chamber of Shipping Event and promised to place maritime at the heart of the government’s plans for change.
The UK Emissions Trading Scheme (ETS) Authority is consulting on proposals to expand the scheme to include emissions from the maritime sector.
The development of the Single Trade Window (STW – designed to reduce friction on imports and exports at borders) in the 2025 to 2026 financial year has been paused due to financial challenges. The government will consider the role of the STW and will provide an update in late Spring 2025.
The government has launched a new ‘Jet Zero’ taskforce made up of airports, airlines, fuel producers and academics, tasked with supporting the delivery and production of sustainable aviation fuels.
On 24 December, the DfT published a consultation (open until 18 February) on proposals to support the UK’s transition to zero emission vehicles.
Plans have been submitted to make a Trafford Centre site the largest EV charging site in Europe, to include 47 ultra-rapid charging spaces. If plans are approved, construction could begin in early 2025.
Amazon is fitting 1,000 electric delivery vans with AI innovation, Vision-Assisted Package Retrieval (VAPR). It means delivery drivers will no longer have to spend time organising packages by stops, reading labels, or manually checking key identifiers like a customer’s name or address to ensure they have the right packages. They simply have to look for VAPR’s green light, grab, and go. VAPR could have a variety of uses across the logistics sector.
FedEx has announced the European launch of FedEx Surround®, monitoring and intervention technology which predicts potential disruptions in the shipping process. It provides critical updates and interventions to help the company and customers to swiftly make informed decisions. It’s likely to be particularly valuable in the context of just-in-time delivery and high-stakes shipments.
Volvo and DHL have taken a significant step towards transforming supply chain and freight operations with the launch of autonomous trucking across two routes in Texas. With a safety driver present for now, to monitor performance and ensure integration into existing logistics networks, this is a critical phase in validating the full ecosystem required for autonomous transport at scale.
In related news, DHL has completed its first deployment of an autonomous vehicle in live airport traffic at Heathrow, safely completing 1,300km of autonomous driving in 14 days. The deployment is part of the goal to use automatic vehicles for baggage transfer.
A robotics company founded in 2020 has developed and launched a business combining automation software and large floor-like robotic platforms that can hold 10 pallets and carry up to 12,000 pounds, to cut trailer-loading time from around an hour, to around 5 minutes.
The UK Civil Aviation Authority (CAA) has published a roadmap for a major increase in drone deliveries. The plan involves drones flying regularly and routinely beyond visual line of sight, which can enable a faster, more efficient delivery network, capable of reaching remote and hard-to-access areas. In related news, Amazon has been given the go-ahead to test fly drones beyond a human controller’s line of sight in the UK, paving the way for drone home deliveries. Amazon is one of six organisations taking part in a CAA trial, with other projects including the inspection of offshore windfarms, air traffic control, policing and delivering emergency medical supplies.
“Take-up of commercial opportunities afforded by drone innovation is increasing. Drone law and regulation is developing to keep pace. In this article, we highlight some of the key drone laws and legal issues (including GDPR/data protection) impacting drone operators in the UK today.“
The government has published The English Devolution White Paper which proposes significant plans to make devolution/local decision-making the default setting across a range of policy areas. Measures include plans for new local ‘strategic councils’ with the ability to guide infrastructure and development projects across areas such as housing, transport and skills.
The government has published a revised version of the National Planning Policy Framework (NPPF). The logistics industry has reacted positively, as the NPPF acknowledges the importance of logistics developments to the economy – logistics is recognised as a separate and essential use class. Logistics UK is also lobbying planners to appreciate that the logistics sector is vital to the delivery of new housing.
“Following publication of the revised NPPF, planning policies and decisions should recognise and address provision for storage and distribution operations to support the supply chain, transport innovation and decarbonisation. Although the NPPF didn’t go as far as some in the sector may have wished, we should see some positive impacts on the development and construction of logistics projects per se, as well as projects which rely more indirectly on the sector.”
National Highways and Natural England have signed a ‘landmark agreement‘ to safeguard the environment whilst improving/developing road network infrastructure.
A review led by a leading planning barrister, Lord Charles Banner KC’s Independent review of Legal Challenges to Nationally Significant Infrastructure Projects, sets out recommendations for speeding up handling of legal challenges to major infrastructure projects. The government is considering the review’s findings and recommendations, and additional suggestions for addressing delays arising from judicial reviews against Development Consent Order decisions.
The UK government has commissioned a DEFRA regulatory review to examine how the current regulatory framework affects economic growth while ensuring the natural environment is not compromised. This development has sparked widespread interest within the construction industry, particularly for its potential impact in relation to nutrient neutrality and biodiversity net gain (BNG).
ENDS and PlanningResource are apparently seeking confirmation of reports that the government is considering broadening the range of developments that are required to comply with BNG, under plans to resolve ‘loopholes’ in the policy. One to watch.
Following the Climate Change Committee’s (CCC) Annual Progress Report to Parliament in July 2024, the government has outlined its priorities through its Clean Energy Superpower Mission and sets out how it is acting or partially acting on the CCC’s recommendations. Relevant to logistics, the report outlines that government will soon set out detailed plans for transforming the freight and logistics sector, through improved efficiencies and enabling consumers to benefit from lower carbon goods. Their vision for freight will combine a zero-emission light- and heavy goods vehicle fleet with increased rail freight capacity and zero emission vessels at sea. Plans will be delivered with improved, reliable infrastructure underpinning every element. The government also sets out that it will take action to decarbonise the UK maritime sector and work with international partners to reduce global shipping emissions at the International Maritime Organization in Spring 2025.
Walker Morris has reported previously the High Court’s and Court of Appeal’s findings, in C G Fry v Secretary of State for Levelling Up, that government rules aiming to mitigate the impact of nutrient pollution on protected waterways apply to the final discharge of planning conditions as well as earlier consenting stages. The Supreme Court has now granted permission for C G Fry to appeal. The timescale for the Supreme Court hearing is yet to be confirmed.
The Royal Institution of Chartered Surveyors (RICS) has published materials, including a webinar, on the subject of ESG in real estate. Experts from the webinar highlighted the following key points: the industry still has a long way to go in achieving resilience against ESG risks, which are becoming critical for property value and marketability; ESG standards need incorporating into everyday operations; technology is vital to assess, manage, and report ESG risks in real estate.
A new technical standard has been launched to help UK construction achieve net zero carbon buildings. The free-to-access UK Net Zero Carbon Buildings (NZC Buildings) Standard specifies the criteria a building must meet to be verified as net zero. The requirements encompass construction quality and building performance metrics, and cater to all significant building sectors, including new constructions and existing structures.
The UK government’s Industrial Strategy is due to be published in Spring 2025, following consultation on the Industrial Strategy green paper. Make UK, Logistics UK and the Competition and Markets Authority (amongst others) responded to the paper.
The government has announced a new National Infrastructure and Service Transformation Authority (NISTA), which will combine the functions of the National Infrastructure Commission and Infrastructure and Projects Authority, bringing infrastructure strategy and delivery together, to overcome challenges and boost infrastructure development.
The government has also launched the British Infrastructure Taskforce, a public and private sector collaboration, to explore different options to support the UK’s infrastructure goals.
The UK, Scottish, and Welsh governments have jointly commissioned the National Energy System Operator (NESO) to produce a Strategic Spatial Energy Plan, to set out the location for new energy infrastructure to 2050. The aim is to address grid connection waiting times, overall system costs and enable the transition away from fossil fuels. NESO is expected to look at how best to locate new energy projects across the country to take account for transport, water supply, the environment and other issues. The NESO will publish its consultation on methodology later this year. The first iteration of the plan will be published in 2026 and will focus on electricity generation and storage.
“The logistics sector is poised for transformation in 2025, as AI-assisted tech innovations to support sustainable development and supply chain solutions move from aspiration to implementation. Our Technology & Digital group can help logistics clients to maximise the opportunities, and to navigate the legal risks, involved in implementing tech at scale.”
Ryan Doodson, Senior Associate, Commercial