The confidence of logistics businesses is beginning to show signs of recovery, after what has been a turbulent start to the year, with the conflict in the Middle East pushing up fuel prices and operating costs.
The findings come from Logistics UK's latest Logistics Performance Tracker survey, which is a quarterly barometer that uses publicly available data and information from survey respondents, to examine the health of the sector and long-term trends.
Results for Q2 of 2026 paint a picture of increased business confidence. Using a scale from 1 to 10 or 1 to 100, with the highest number representing the best score, the survey has found that business outlook has improved from 5.8 in Q1 to 6.5 out of 10, with logistics businesses feeling more positive about their prospects and the economy as a whole. Meanwhile, respondents felt that the financial health of their businesses has improved slightly from 7.2 to 7.5.
“Logistics is absolutely critical to the UK economy,” said Logistics UK’s Chief Executive Ben Fletcher. “From delivering goods for businesses and schools to supermarkets and pharmacies, the service our industry provides is essential to everyone’s way of life, as well as powering every part of the economy from factories to schools, hospitals and even our leisure hours.
“Even amidst major disruption and supply chain issues, operators across our sector have continued to maintain service reliability and deliver for their customers. 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, with gradual signs of recovery beginning to show. This is encouraging news, but there is still work to be done to help to drive the growth the government has committed to achieving.”
However, although the near-term outlook improved this quarter, business expectations remain cautious overall, informed by pressures that continue to persist. This caution includes the impact of continued high transport costs, which scored low marks by respondents at 11.5 out of 100, while 57% of respondents report that they expect costs to rise in the short to medium term. Although overall this is an improved position compared with Q1’s responses, the survey’s findings suggest that firmer demand across the economy could be offset by tighter margins and greater financial strain on road-based operators which are already operating on wafer-thin margins with little room for manoeuvre.
Other concerns captured include the continued business pressures caused by freight rates, the price paid to move cargo from one location to another, with the majority of respondents expecting rates to rise, both internationally (70.4%) and domestically (67.6%). Continued disruption to global shipping routes is still a critical concern, with 26% reporting worse conditions than Q1, particularly for a sector that relies on a fully interconnected network of transport modes through which to move goods.
Ongoing recruitment issues are also proving a pain point, as 44% of respondents said they do not have enough professional drivers and almost a third of those questioned reporting severe or very severe difficulties with filling fitter, mechanic or technician vacancies.
“The efficiency of the logistics sector means its contribution to keeping everything running often goes unrecognised,” continued Mr Fletcher. “But the challenges firms face on a regular basis, while operating on narrow profit margins, make it vital that the industry continues to have access to the skilled staff it needs, as well as access to transport corridors at the appropriate times, with no restrictions or excessive costs.
“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, all of which will give the sector the capacity to be a powerful catalyst for growth and resilience across the economy.”
