The logistics sector has never played a more pivotal role in the success of the UK economy. With the convergence of various disruptive forces such as Covid-19, Brexit, and rapid technological changes, the movement of goods across borders and through the intricate web of supply chains has taken on a newfound significance.
At the forefront of this dynamic environment is Logistics UK, a unique business group that stands as the representative voice of the entire industry. This collective body encompasses stakeholders from road, rail, sea, and air industries, alongside major buyers of freight services – including prominent retailers and manufacturers – all of whom rely on the seamless flow of goods for their operations.
Leading the policy charge at Logistics UK is Kate Jennings, a seasoned logistics expert with an extensive background spanning both government and business sectors. As its executive director, she heads the policy team responsible for shaping the organisation’s strategic framework.
Jennings brings to the table a wealth of experience from her former role as the Policy Director of the Railway Industry Association, along with her tenure at the Department for Transport, where she honed her expertise in aviation, rail policy, and road transport policy in the context of the UK’s exit from the European Union.
In her current role, Jennings is steering the focus of her team toward four pivotal policy domains: infrastructure, decarbonisation, trade and skills.
Jennings believes the UK’s logistics sector requires a more integrated and multimodal infrastructure foundation. And to realise this vision, Logistics UK is advocating for a comprehensive 30-year infrastructure plan aimed at establishing a robust national logistics transport and energy network.
Central to the discourse is the profound concern for the environmental footprint of the logistics industry. “Environmental impact and the journey toward net-zero emissions constitute a central focus for our members,” Jennings states unequivocally. Logistics UK advocates for a comprehensive strategy for low carbon fuels (LCFs) that addresses critical aspects such as infrastructure, manufacturing, and the optimal utilisation of different fuel types across industries.
The urgency of the matter is mirrored in the call for enhanced infrastructure and fiscal support for battery electric vehicles, coupled with trials of battery electric and hydrogen-powered heavy goods vehicles (HGVs).
This quest for sustainability transcends all modes of transport, extending to the railway network through increased electrification. Here Logistics UK is calling for a review of the Mode Shift Revenue Support (MSRS) scheme to incentivise the utilisation of inland waterways, thereby fostering a modal shift that aligns with sustainable practices.
And while the industry has embraced the imperative of reducing its carbon footprint, a clearer roadmap is now needed, says Jennings: “The industry requires increased transparency regarding energy infrastructure plans, innovation funding, and regulatory and tax incentives that are pivotal to achieving the ultimate goal of net-zero emissions.”
Highlighting the crucial role of trade as a catalyst for innovation and productivity, Jennings underscores the need for a collaborative approach to trade policy. “The co-design of trade policy between government and the logistics sector is paramount, given that international trade hinges on efficient supply chain management. Efficient execution of the UK border strategy is essential, ensuring both the effectiveness of borders and the readiness of the industry to navigate impending changes.”
On evolving trade agreements, Jennings underscores Logistics UK’s continuos engagement with policymakers to navigate changes in current trading arrangements. She points out the business group’s pivotal role in the negotiations surrounding the Windsor Framework and the Border Target Operating Model (BTOM).
“Logistics UK stood as a steadfast representative, actively engaged throughout the Windsor Framework negotiations. Our interactions with high-profile figures such as Prime Minister Rishi Sunak, Foreign Secretary The Rt Hon James Cleverly MP, and other key stakeholders, exemplify our commitment to ensuring the interests of our members are duly represented.”
Jennings emphasises the organisation’s unwavering dedication to collaborating with policymakers to “address concerns, find pragmatic solutions, and provide vital operational details necessary for industry readiness”.
Logistics UK has been deeply involved in discussions concerning the Border Target Operating Model. Jennings voices concerns over the proposed framework, citing challenges stemming from a lack of detail and ambitious timelines, which could potentially escalate costs for businesses and contribute to inflationary pressures. Jennings added: “Logistics plays a vital role in the nation’s economy, and it is crucial that as an industry, we maximise trading opportunities and ensure these are as frictionless as possible.
“The sector is working hard to address issues surrounding decarbonisation and skills, however with the publication of the Border Target Operating Model imminent, collaboration between industry and government is essential to address the further details needed by the sector and avoid costs and new potential barriers that would inhibit trade.
“Consistent engagement with both members and policymakers remains our modus operandi,” says Jennings, reinforcing the organisation’s steadfast commitment to facilitating a seamless flow of goods. This engagement takes multifaceted forms, ranging from responding to consultations to active participation in roundtable discussions hosted by influential figures such as Baroness Neville-Rolfe. These initiatives also underscore Logistics UK’s resolute stance in ensuring that the voices of its members resonate in policy discourse.
Collaboration with policy-making entities remains at the core of Logistics UK’s mission. Jennings highlights the organisation’s collaborative efforts with entities such as the DfT’s Centre for Connected and Autonomous Vehicles (CCAV), Zenzic, and the Law Commission to enhance the understanding of the regulatory framework that underpins the logistics sector.
This collaboration extends to shaping the trajectory of automation in logistics, with Jennings offering insights into the potential benefits of automation and autonomy for the broader economy.
She explained: “Our engagement with CCAV and Zenzic has centred around identifying opportunities for technology integration in logistics, which have been instrumental in shaping their roadmaps for the future.
“Moreover, Logistics UK’s partnership with the Law Commission has facilitated a nuanced understanding of the differentiation between public transport and goods transport, ultimately influencing regulatory recommendations that align with the unique needs of the logistics sector.”
One of the most pressing needs is addressing the skills shortage that looms over the sector. At the heart of this endeavour lies the Generation Logistics campaign, which seeks to illuminate the diverse array of high-quality roles available within the industry, as Jennings articulates: “Our vision for the future hinges on building upon the foundations of Generation Logistics, forging partnerships that span the gamut of roles within the logistics domain.
”The ongoing support for the Generation Logistics campaign seeks to bridge the skills gap by presenting young individuals and educators with a comprehensive view of the sector’s opportunities.”
Jennings also stresses the importance of reforming the Apprenticeship Levy and bolstering funding for engineering and technician courses to bolster the talent pipeline.
At the heart of Logistics UK’s vision is a holistic approach that encompasses infrastructure, sustainability, trade, and talent. Jennings’ insights shed light on the organisation’s endeavours to not only adapt to a rapidly changing environment but also shape the trajectory of the logistics industry for the benefit of the UK economy and society at large.
For more information, visit www.logistics.org.uk