Confidence across the UK logistics sector improved in the second quarter of 2026, although businesses remain under pressure from high transport costs, rising freight rates and persistent recruitment challenges.
Logistics UK’s latest Logistics Performance Tracker found that operators were feeling more positive about their prospects following a turbulent start to the year, which saw conflict in the Middle East push up fuel prices and operating costs.
Business outlook rose from 5.8 in the first quarter to 6.5 out of 10 in Q2, while respondents’ assessment of their financial health edged up from 7.2 to 7.5.
Logistics UK chief executive Ben Fletcher said the results showed “gradual signs of recovery” across the sector.
“Even amidst major disruption and supply chain issues, operators across our sector have continued to maintain service reliability and deliver for their customers,” he said.
“After a difficult start to the year, it is encouraging that survey results for this quarter show that operators are starting to feel more confident about the state of business.”
However, the trade body warned that operators remained cautious about the months ahead as cost pressures continued to weigh on margins.
Transport costs scored just 11.5 out of 100 in the survey, while 57 per cent of respondents said they expected costs to rise in the short to medium term.
Logistics UK said stronger demand across the economy risked being offset by tighter margins, particularly among road freight operators already working with limited financial headroom.
Freight rates were also expected to rise, with 70.4 per cent of respondents predicting higher international rates and 67.6 per cent expecting domestic prices to increase.
Global shipping disruption remains another concern, with 26 per cent of businesses reporting that conditions had worsened compared with the first quarter.
Labour shortages are also continuing to hit operators. Some 44 per cent of respondents said they did not have enough professional drivers, while almost a third reported severe or very severe difficulties recruiting fitters, mechanics and technicians.
Fletcher called for greater government support for the sector through infrastructure investment, improved access to skilled workers and policies that recognise logistics’ role in supporting economic growth.
“Our sector needs the support of a policy framework that acknowledges the critical role that logistics plays in driving economic growth, alongside sustained public and private investment in infrastructure and a closer partnership between government and industry,” he said.
Logistics UK represents businesses across road, rail, water and air freight, as well as major users of logistics services including retailers and manufacturers.
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