The Freight and logistics segment is an indispensable part of the economic health of the nation, with the logistics business is itself employing one of every twelve of the United Kingdom’s working individuals. The structural shift towards online retail and favourable occupier market dynamics is encouraging investment into the sector. Investment into UK industrial and logistics totalled £9.3 billion in 2020, up from £7.7 billion in 2019.

Comprehensively and globally, the United Kingdom is the second-biggest exporter of services, after the United States. The concrete development of the automotive segment and the substantial development of the manufacturing sector are required to help the development in the logistics segment for setting up a business in the UK. In 2020, online sales accounted for 27.9% of total retail sales. With non-essential shops closed, online retail penetration rates reached a record 36.3% in January 2021.

The road freight transport works in the most extensive transport network and system of all the freight channels, which gives adaptability and accommodation of door-to-door delivery. Road Freight transport involves a real contributory share in the inland freight transport with ~98 per cent pursued by rail. Although the sector exhibited a diminished pattern during 2016-17 in international road freight, revenue has triggered back to its concrete growth which has boosted business migration to the UK.

The business is exceptionally competitive, aggressive and fragmented. Being a well-developed nation, UK was identified in the 27th position as far as the quality of roads is concerned as portrayed in a report released by world economic forum, which demonstrates the improvement required in the road infrastructure. In England, the government made a significant take towards the consequent phase of road development.

Navigating the Post-Brexit Terrain

Retailers and manufacturing firms now have clarity on the regulations and requirements for trading, tariff-free, with EU. In 2021, we will see them adjusting their supply chains and distribution networks to minimize the impact on sales, profits and cash flow. The UK-EU trade deal (the Trade and Cooperation Agreement, or TCA) means that tariffs have, for the most part, been avoided on goods crossing the border.

However, new regulations mean additional paperwork, declarations and checks. These measures mean that cross-border trade will be subject to potential delays and there will be additional compliance costs for businesses. Industries with long supply chains, just in time inventory management, time-sensitive products and significant industry regulations (such as automotive, aerospace and chemicals), will face disruption as they navigate the new post-Brexit terrain.

Brexit – A Threat and an Opportunity

As per the logistics industry survey in 2017-18, there have been progressive concerns among the logistics business operators because of the complicated external factors, as Brexit vulnerabilities, slowed down the UK development, Sterling shortcoming, and UK interest rates, which are estimated to demonstrate a negative influence over the markets. The vulnerabilities, which are anticipated to emerge by the UK leaving the European Union (Brexit), could seriously upset the nation’s logistics industry. The UK imports majorly natural resources from the other European nations.

Since the trading conditions are complex, emerging from the Post-Brexit circumstances, the market is forecasted to observe higher fuel prices, trade tariffs, and increased commodity and finished goods prices. The increased fuel prices could influence the End-consumers since logistics service providers will shirk the additional costs on consumers. Another key concern is that the European nationals contribute around 10% of the United Kingdom’s commercial industrial drivers.

Pre-Brexit negotiations have aroused tremors in the European nationals, which made them concentrate on the nations where they are increasingly sure of their future rights. The loss of the workforce is going to affect the logistics industry, which can’t deliver the demand because of the inadequacy of commercial industrial drivers. Moreover, the Republic of Ireland and Northern Ireland trade freely with considerable trading volumes.

Yet, the trade relations between the two regions are probably going to be seriously hampered except if an acceptable and unanimous trade agreement is achieved. On the contrary, Brexit offers openings as far as technological advancements and innovations are concerned, since it caters as a potential impetus for alternative fuel market. The rising imported fuel prices are the major considerable factor that permits commercial transport services to deviate their focus from fossil fuels.

Government is also expected to offer incentives for this process, which diminishes the pollution and dependence of kingdom on fossil fuels.

If you want to start a business in the transport and logistics sector in the UK through UK Innovator Visa, UK Start-up Visa, UK Investor visa or through work permit Skilled Worker Visa UK, you can speak to the UK Immigration Experts on +91 98191 27002 or email at and book your consultation appointment with The SmartMove2UK UK Immigration advisor to know about the specific visa category and how you can apply for permission to remain the UK as an entrepreneur.

More Reading : Business Migration to UK – Trends in Transport and Logistics Sector (Part 2) & (Part 3)

With prior appointment, you can either Skype or Walk-in directly to the offices of The SmartMove2UK in Mumbai, Delhi and Bengaluru.