Cleveland Containers discusses the ever changing UK logistics landscape and the factors shaping its future
The UK’s £170bn (US$226bn) logistics sector employs more than 8% of the nation’s workforce, moving goods that keep businesses, retailers and households functioning. With regulatory pressure mounting across environmental standards, border compliance and supply chain transparency, operators face an extremely complex and demanding environment.
Since the UK’s official departure from the European Union in early 2020, Brexit has completely changed the landscape. UK to EU exports fell by 27% and imports by 32% between 2021 and 2023, and the administrative burden that came with those trade changes has never fully eased.
While cross-border movements were once seamless, now customs declarations, rules of origin certification, Export Health Certificates and safety and security declarations are standard requirements.
“The sheer volume of compliance obligations that logistics managers are now expected to absorb is overwhelming,” said Andrew Thompson, CEO at shipping container supplier Cleveland Containers. “What has changed most is not just the number of requirements but how quickly they evolve. Businesses that were managing comfortably two years ago are finding themselves exposed as the goalposts continue to move.”
Where businesses are getting caught out
Environmental compliance is one of the fastest-growing pressure points. The UK’s Minimum Energy Efficiency Standards are widely expected to tighten to an EPC B rating for commercial properties by 2030, which will force costly upgrades across older warehousing stock. Biodiversity Net Gain requirements now apply to most new logistics developments, adding another layer of planning complexity for operators looking to expand their footprint.
At the same time, the UK’s Carbon Border Adjustment Mechanism is progressing through legislation, with full implementation expected in 2027. Businesses importing carbon-intensive goods will face new cost obligations, meaning that those that haven’t yet mapped their supply chain’s carbon footprint will quickly find themselves behind.
For operations with EU-facing trade, regulatory divergence from EU standards continues to create friction for many during daily operation, including border delays, temperature breaches in refrigerated freight and rising administrative costs. Research suggests businesses with EU-connected supply chains will face logistics cost increases of between 12% and 18% by 2027, as UK and EU standards drift further apart.
“Environmental compliance is catching a lot of businesses off guard because several regulations are running in parallel and it’s complex,” said Thompson. “Operators who are focused purely on transport costs and border compliance often haven’t fully accounted for what they will need to spend on their physical infrastructure.”
Rule changes impacting workforces
Driver numbers are sitting around 15% below pre-Brexit levels which is attributed to the loss of EU workers, following the change in immigration rules. The knock-on effect impacts delivery reliability, service levels and cost across the board.
As firms compete for a smaller pool of qualified drivers, wages have risen and training investment has increased. While both are welcome developments for workers, this also adds to the sector’s cost pressures.
With updated guidance published in March 2025, Modern Slavery Act obligations are also tightening, placing greater scrutiny on supply chain transparency, particularly for businesses that use subcontractors.
Building compliance without sacrificing efficiency
Despite the pressure, the businesses managing things best are those treating compliance as an operational discipline rather than a reactive exercise.
“The instinct is to deal with each requirement as it arrives, but that approach is expensive and disruptive,” warns Thompson. “The operators who are in the strongest position are those who have built compliance thinking into how they plan routes, manage contracts and procure storage. It becomes part of the process rather than a problem to fix.”
Digital customs platforms, automated documentation systems and real-time tracking tools are reducing the administrative load for businesses managing high volumes of cross-border movements. Early investment in these systems is paying off as scrutiny increases and the cost of errors grows.
For businesses working with external storage and container solutions as part of a flexible logistics model, ensuring those assets meet current and forthcoming EPC and sustainability requirements is an increasingly important consideration when planning capacity.
“Scrutiny across this sector is not going to ease,” says Thompson. “The businesses that will navigate this well are the ones building resilience now, not waiting until a regulation deadline forces the issue.”
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