Consumers across the globe relied on home delivery services more than ever largely due to the restrictions in combatting the COVID-19 pandemic, resulting in the lower warehousing space availability. Whilst the pandemic-related restrictions have eased, many consumers are now accustomed to shopping online.
This change in consumer behaviour resulted in online retailers taking up 40% of the UK’s warehousing spaces in 2021. Due to the uncertainty of the Brexit negotiations, many businesses trading in the UK and/or the EU market(s) increased their inventory levels, requiring them to increase their warehousing occupancy across Europe.
Although the UK departed from the EU single market and customs union at the end of 2020, the demand for warehousing space will likely increase in response to the post-Brexit, non-tariff barriers. Despite the growing demand for warehousing, the supply will likely be heavily constrained throughout 2022.
The UK’s warehousing spaces that are currently under construction in the pipeline decreased from 28m sq. ft at the end of 2020 to 21m sq. ft at the end of 2021. The imbalance between demand and supply resulted in rental growth at a record high level in 2021.
The logistics sector’s market size is forecasted to become US$6.3 trillion globally in 2026, with a growth rate of 4.6% CAGR from 2020. This whitepaper summarises the recent trends in the following logistics sub-sectors: warehousing, reverse logistics, ocean freight, air freight and road freight.
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Logistics Trends 2022 Whitepaper