“In this edition of our regular logistics sector scanner, Amazon’s expansion into the LTL freight market, geopolitical pressures driving potential increases in UK warehouse demand, and proposals affecting commercial leasehold, automated vehicles and freight reporting, all point to an evolving operating environment. Energy efficiency requirements for large industrial premises, new emissions and vehicle standards, and planning reforms are shaping investment and development decisions, and workforce capability remains an industry-wide challenge. Don’t hesitate to contact our dedicated logistics specialists for further information and advice.”
Alastair Robertson, Partner, Construction & Engineering
Industry news
Amazon’s LTL (Less-Than-Truckload) service lets businesses ship smaller pallet loads by sharing truck space with other shippers. Businesses pay for the exact trailer space used, without needing to book an entire truck. There could be impacts on the wider logistics warehousing market and other LTL transportation providers.
“Illegal entry onto land, unlawful waste deposits, and nuisance activity represent major risks for landowners and occupiers, such as manufacturers and logistics/warehouse operators. Incidents have increased in recent years, driven by factors ranging from organised criminality and opportunistic dumping, to protestor activism. In this article, we offer advice as to the proactive ways landowners can take to mitigate trespass risks and impact.”
Nick McQueen, Partner, Commercial Dispute Resolution
Savills has published ‘People, power and politics – what’s currently shaping UK industrial & logistics?‘, a podcast looking at the outlook for the UK’s industrial and logistics market; the impact of geopolitical events on occupiers’, investors’, and developers’ strategies; and how automation, planning, labour and power are shaping the sector.
Montagu Evans has reported that the recent geopolitical climate may result in higher warehouse demand in the UK, as firms look to store larger inventories onshore.
Logistics UK has published its annual Logistics Report 2026, reviewing current trends across the sector. The report highlights continuing disruption linked to conflict in the Middle East, rising costs and policy shifts, alongside ongoing challenges around connectivity, efficiency, skills, decarbonisation and trade.
The Law Commission has published two consultation papers proposing far-reaching changes to commercial leasehold law in England and Wales. The papers cover modernising the 1954 Act, removing anti-avoidance barriers under the 1995 Act, and reform of first-refusal provisions in mixed use premises under the 1987 Act. The proposals aim to give a legal framework that better serves the needs of commercial occupiers. The consultations are open until 16 September 2026 and will be of interest for landlords and tenants operating on the high street and across the office, industrial and logistics sectors.
Financial pressure across transport and logistics remains one to watch. Trans.INFO has reported that 35 UK transport and logistics companies entered administration during 2026, with June the busiest month of the year so far. The figures cover the wider transport and logistics market, including road, rail, sea, air, warehousing, fulfilment and storage.
Road/rail strategy and freight infrastructure
The government has introduced digital ATA Carnets, replacing paper-based systems used for the temporary international movement of goods. Logistics UK said, “The measure will align the UK with international developments and support cross-border trade, updating the process and reducing burden.”
The government is consulting, until 9 September 2026, on the draft statement of safety principles for automated vehicles.
In related news, the government has laid new regulations that will limit the use of terms such as ‘self-driving’, ‘driverless’, ‘automated driving’ and ‘autonomous driving’ to vehicles that are officially authorised or listed as able to drive themselves safely and legally. The measures form part of the implementation of the Automated Vehicles Act 2024 and are there to prevent customers and vehicle users from being misled about a vehicle’s capabilities. The regulations are expected to come into force on 7 January 2027. Further details can be found here.
A report from the Institution of Mechanical Engineers has concluded that improving the accessibility of the UK’s transport network could give an annual £176.4bn boost to the economy, by enabling millions more people to access work, education and essential services.
The government has announced a reset of HS2. It includes revised costs of £87.7–£102.7 billion and significantly extended timelines, with full delivery expected in the early 2040s. The reset also includes changes aimed at reducing complexity and cost. HS2 won’t carry freight, but through release of capacity on the current rail network, it’s expected HS2 will add to extra freight paths and growth.
Decarbonisation
The Department for Transport is consulting, until 28 July 2026, on plans for a scheme to address high electricity network upgrade costs at motorway service areas in England. A suggested £190 million has been allocated for the scheme. It’s part of the £400 million to support EV charging infrastructure announced in the Spending Review covering 2026 to 2030.
As reported previously, the UK Carbon Border Adjustment Mechanism (CBAM) is due to come into force on 1 January 2027. It will apply to some imports from the iron and steel, aluminium, fertiliser, hydrogen and cement sectors. The government laid the first set of secondary legislation in July 2026, with further legislation on monitoring, reporting and verification of emissions, and more detailed guidance, expected later this year. Logistics providers and customers moving in-scope goods should expect greater focus on commodity codes, origin, emissions data and contractual allocation of compliance responsibility.
The EU has launched the Count Emissions EU framework: a voluntary, standardised system for calculating and reporting emissions from freight and wider transport. The framework aims to provide a more comparable emissions dataset across all transport modes, to tackle greenwashing or misleading claims around emissions. The regulation applies to transport operators who already fall into scope of emissions reporting in the EU (for example, companies who directly report, or whose customers report, to the Corporate Sustainability Reporting Directive (CSRD)), but otherwise can be used for reporting on a voluntary basis.
The UK government has set out plans for a new Low Carbon Fuels Fund (LCFF), building on the £198 million already allocated via the Advanced Fuels Fund. The LCFF will be aimed at supporting SAF production plants. In related news, the Department for Transport has begun a call for evidence, open until 28 July 2026, looking for evidence to help the government better understand global SAF supply projections, and how the decarbonisation benefits of the existing targets can be maximised.
The Department for Transport has begun a consultation on plans to strengthen the regulation of In-use emissions of road vehicles, including requirements for vehicles to keep their original emissions standards throughout their operational life and restrictions on modifications that increase emissions. The proposals could have significant implications for vehicle operators, workshops and fleet maintenance practices.
Construction/development and real estate
The UK government has set out proposals for reforms to the Energy Performance Certificate (EPC) scheme for non-residential property. Proposals for raising the standard are limited to larger premises, but this may affect many manufacturing and supply chain businesses. The government proposes that from 2031, rented premises over 1,000 sq m will need to have a minimum EPC rating of B or higher. This change will require secondary legislation, so it’s one to keep an eye on.
Potentially a useful decision for landowners/developers, in Grossart v Ames[2026] UKUT 139 (LC), the Upper Tribunal (Lands Chamber) (UT) allowed discharge of a restrictive covenant preventing on the grounds it should be deemed obsolete (ground (a) of section 84(1) of the Law of Property Act 1925) because its original purpose had been met. The restriction was originally intended to preserve opportunities for future development by retaining control of the access road and services. Development of the retained land had been completed in the interim. (The UT was also satisfied that discharge/modification wouldn’t cause injury to the objector and didn’t secure practical benefits of substantial value or advantage to her).
The government has completed its guidance on how local authorities should prepare their next local plans under the new, revised procedure introduced by the Levelling up and Regeneration Act 2023. The government is pressing all local authorities to quickly prepare new local plans that accommodate the allocations needed to reach the government’s target of building 300,000 new houses a year.
The Environment Agency and Natural England have announced the launch of two analytical tools to help organisations identify where environmental, socio-economic and health pressures overlap in communities across England. The tools are meant to provide a consistent evidence base to support planning decisions, prioritise resources and inform more coordinated responses to environmental, social and health challenges.
The Considerate Constructors Scheme has announced changes to its assessment process. The new model adopts a percentage scoring system with equal weighting given to themes of community, environment and workforce. Changes include an increased focus on safety, social value, inclusivity and environmental preparedness.
With new ‘prompt payment’ rules intended to protect small businesses, the government has announced that companies that fail to pay suppliers within 60 days will face fines or automatic interest payments. Boards will also be required to report on payment terms and measures to improve performance.
The government is establishing a new register for documents that create contractual controls over land. It’s aimed at conditional contracts, option agreements and other similar arrangements under which someone who is not the registered proprietor controls what happens with the land. See our briefing for further information and advice.
Last year’s landmark Supreme Court ruling in Finchconfirmed that applications for major developments should consider all significant direct and indirect greenhouse gas emissions. The Institute of Environmental and Sustainability Professionals has now launched updated guidance on how to assess the impact of greenhouse gas emissions from development projects, in light of Finch.
Defra has published the UK’s new Land Use Framework. The framework aims to support a more consistent spatial vision for England by aligning national and local plans. It looks to balance competing demands on land (housing, food production, energy infrastructure, and environmental goals) with safeguarding agricultural productivity. It commits to providing data and tools so planning decisions on housing and energy can be faster, clearer and more predictable.
Soil data is now freely accessible to all via the online National Soil Map. The resource should support free research and decision-making across agriculture, construction, conservation, climate science, hydrology, flood risk modelling and landscape management.
MHCLG has published a policy paper “Streamlining infrastructure planning: implementation plan”. It sets out key steps, based on the government’s September 2025 consultation, to streamline planning for Nationally Significant Infrastructure Projects (NSIPs). The plan is a delivery document for the Planning and Infrastructure Act 2025, confirming when revised guidance, secondary legislation and new Planning Inspectorate (PINS) services will be rolled out.
In related news, “The government has published its response to its 2025 consultation on the implementation of mandatory Biodiversity Net Gain for NSIPs. BNG is now scheduled to apply to NSIP applications from this coming November. In this article, we provide a quick overview, highlighting the essentials for promoters, landowners and other stakeholders involved in infrastructure projects.”
Lee Gordon, Partner, Planning & Infrastructure Consents
People in logistics
Logistics UK’s new Employment and Skills Report 2026 shows that workforce challenges in logistics have shifted from labour shortages to a deeper ‘capability gap’ – i.e. a growing mismatch between the skills employers need and those available in the workforce.
Several logistics and delivery operations across the UK have been affected by strike/industrial action during 2026. Check out our recent briefing for practical information and advice for employers.
Generation Logistics, in conjunction with Logistics UK member GXO, and the Department for Transport, has created a practical guide that explains how logistics employers should design and deliver work experience opportunities that support young people and strengthen future talent pipelines.
Implementation of the Employment Rights Act 2025 (ERA) will continue through 2026 and 2027. Several changes have already taken effect, including day one paternity and unpaid parental leave, changes to statutory sick pay and increased protections relating to industrial action. Logistics employers should keep workforce models, shift arrangements, absence processes and union engagement under review. To help, access our ERA tracker here, and see this Acas resource.
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Logistics Horizon Scanner – July 2026
29th July 2026
“In this edition of our regular logistics sector scanner, Amazon’s expansion into the LTL freight market, geopolitical pressures driving potential increases in UK warehouse demand, and proposals affecting commercial leasehold, automated vehicles and freight reporting, all point to an evolving operating environment. Energy efficiency requirements for large industrial premises, new emissions and vehicle standards, and planning reforms are shaping investment and development decisions, and workforce capability remains an industry-wide challenge. Don’t hesitate to contact our dedicated logistics specialists for further information and advice.”
Industry news
Amazon’s LTL (Less-Than-Truckload) service lets businesses ship smaller pallet loads by sharing truck space with other shippers. Businesses pay for the exact trailer space used, without needing to book an entire truck. There could be impacts on the wider logistics warehousing market and other LTL transportation providers.
“Illegal entry onto land, unlawful waste deposits, and nuisance activity represent major risks for landowners and occupiers, such as manufacturers and logistics/warehouse operators. Incidents have increased in recent years, driven by factors ranging from organised criminality and opportunistic dumping, to protestor activism. In this article, we offer advice as to the proactive ways landowners can take to mitigate trespass risks and impact.”
Nick McQueen, Partner, Commercial Dispute Resolution
Savills has published ‘People, power and politics – what’s currently shaping UK industrial & logistics?‘, a podcast looking at the outlook for the UK’s industrial and logistics market; the impact of geopolitical events on occupiers’, investors’, and developers’ strategies; and how automation, planning, labour and power are shaping the sector.
Montagu Evans has reported that the recent geopolitical climate may result in higher warehouse demand in the UK, as firms look to store larger inventories onshore.
Logistics UK has published its annual Logistics Report 2026, reviewing current trends across the sector. The report highlights continuing disruption linked to conflict in the Middle East, rising costs and policy shifts, alongside ongoing challenges around connectivity, efficiency, skills, decarbonisation and trade.
The Law Commission has published two consultation papers proposing far-reaching changes to commercial leasehold law in England and Wales. The papers cover modernising the 1954 Act, removing anti-avoidance barriers under the 1995 Act, and reform of first-refusal provisions in mixed use premises under the 1987 Act. The proposals aim to give a legal framework that better serves the needs of commercial occupiers. The consultations are open until 16 September 2026 and will be of interest for landlords and tenants operating on the high street and across the office, industrial and logistics sectors.
Financial pressure across transport and logistics remains one to watch. Trans.INFO has reported that 35 UK transport and logistics companies entered administration during 2026, with June the busiest month of the year so far. The figures cover the wider transport and logistics market, including road, rail, sea, air, warehousing, fulfilment and storage.
Road/rail strategy and freight infrastructure
The government has introduced digital ATA Carnets, replacing paper-based systems used for the temporary international movement of goods. Logistics UK said, “The measure will align the UK with international developments and support cross-border trade, updating the process and reducing burden.”
The government is consulting, until 9 September 2026, on the draft statement of safety principles for automated vehicles.
In related news, the government has laid new regulations that will limit the use of terms such as ‘self-driving’, ‘driverless’, ‘automated driving’ and ‘autonomous driving’ to vehicles that are officially authorised or listed as able to drive themselves safely and legally. The measures form part of the implementation of the Automated Vehicles Act 2024 and are there to prevent customers and vehicle users from being misled about a vehicle’s capabilities. The regulations are expected to come into force on 7 January 2027. Further details can be found here.
A report from the Institution of Mechanical Engineers has concluded that improving the accessibility of the UK’s transport network could give an annual £176.4bn boost to the economy, by enabling millions more people to access work, education and essential services.
The government has announced a reset of HS2. It includes revised costs of £87.7–£102.7 billion and significantly extended timelines, with full delivery expected in the early 2040s. The reset also includes changes aimed at reducing complexity and cost. HS2 won’t carry freight, but through release of capacity on the current rail network, it’s expected HS2 will add to extra freight paths and growth.
Decarbonisation
The Department for Transport is consulting, until 28 July 2026, on plans for a scheme to address high electricity network upgrade costs at motorway service areas in England. A suggested £190 million has been allocated for the scheme. It’s part of the £400 million to support EV charging infrastructure announced in the Spending Review covering 2026 to 2030.
As reported previously, the UK Carbon Border Adjustment Mechanism (CBAM) is due to come into force on 1 January 2027. It will apply to some imports from the iron and steel, aluminium, fertiliser, hydrogen and cement sectors. The government laid the first set of secondary legislation in July 2026, with further legislation on monitoring, reporting and verification of emissions, and more detailed guidance, expected later this year. Logistics providers and customers moving in-scope goods should expect greater focus on commodity codes, origin, emissions data and contractual allocation of compliance responsibility.
The EU has launched the Count Emissions EU framework: a voluntary, standardised system for calculating and reporting emissions from freight and wider transport. The framework aims to provide a more comparable emissions dataset across all transport modes, to tackle greenwashing or misleading claims around emissions. The regulation applies to transport operators who already fall into scope of emissions reporting in the EU (for example, companies who directly report, or whose customers report, to the Corporate Sustainability Reporting Directive (CSRD)), but otherwise can be used for reporting on a voluntary basis.
The UK government has set out plans for a new Low Carbon Fuels Fund (LCFF), building on the £198 million already allocated via the Advanced Fuels Fund. The LCFF will be aimed at supporting SAF production plants. In related news, the Department for Transport has begun a call for evidence, open until 28 July 2026, looking for evidence to help the government better understand global SAF supply projections, and how the decarbonisation benefits of the existing targets can be maximised.
The Climate Change Act 2008 (International Aviation and International Shipping) Regulations 2026 came into force on 1 July 2026. See this explanatory memorandum. They extend the scope of greenhouse gas emissions covered under the Climate Change Act 2008 to include international aviation emissions and international shipping emissions.
The Department for Transport has begun a consultation on plans to strengthen the regulation of In-use emissions of road vehicles, including requirements for vehicles to keep their original emissions standards throughout their operational life and restrictions on modifications that increase emissions. The proposals could have significant implications for vehicle operators, workshops and fleet maintenance practices.
Construction/development and real estate
The UK government has set out proposals for reforms to the Energy Performance Certificate (EPC) scheme for non-residential property. Proposals for raising the standard are limited to larger premises, but this may affect many manufacturing and supply chain businesses. The government proposes that from 2031, rented premises over 1,000 sq m will need to have a minimum EPC rating of B or higher. This change will require secondary legislation, so it’s one to keep an eye on.
Potentially a useful decision for landowners/developers, in Grossart v Ames [2026] UKUT 139 (LC), the Upper Tribunal (Lands Chamber) (UT) allowed discharge of a restrictive covenant preventing on the grounds it should be deemed obsolete (ground (a) of section 84(1) of the Law of Property Act 1925) because its original purpose had been met. The restriction was originally intended to preserve opportunities for future development by retaining control of the access road and services. Development of the retained land had been completed in the interim. (The UT was also satisfied that discharge/modification wouldn’t cause injury to the objector and didn’t secure practical benefits of substantial value or advantage to her).
The government has completed its guidance on how local authorities should prepare their next local plans under the new, revised procedure introduced by the Levelling up and Regeneration Act 2023. The government is pressing all local authorities to quickly prepare new local plans that accommodate the allocations needed to reach the government’s target of building 300,000 new houses a year.
The Environment Agency and Natural England have announced the launch of two analytical tools to help organisations identify where environmental, socio-economic and health pressures overlap in communities across England. The tools are meant to provide a consistent evidence base to support planning decisions, prioritise resources and inform more coordinated responses to environmental, social and health challenges.
The Considerate Constructors Scheme has announced changes to its assessment process. The new model adopts a percentage scoring system with equal weighting given to themes of community, environment and workforce. Changes include an increased focus on safety, social value, inclusivity and environmental preparedness.
With new ‘prompt payment’ rules intended to protect small businesses, the government has announced that companies that fail to pay suppliers within 60 days will face fines or automatic interest payments. Boards will also be required to report on payment terms and measures to improve performance.
The government is establishing a new register for documents that create contractual controls over land. It’s aimed at conditional contracts, option agreements and other similar arrangements under which someone who is not the registered proprietor controls what happens with the land. See our briefing for further information and advice.
Last year’s landmark Supreme Court ruling in Finch confirmed that applications for major developments should consider all significant direct and indirect greenhouse gas emissions. The Institute of Environmental and Sustainability Professionals has now launched updated guidance on how to assess the impact of greenhouse gas emissions from development projects, in light of Finch.
Defra has published the UK’s new Land Use Framework. The framework aims to support a more consistent spatial vision for England by aligning national and local plans. It looks to balance competing demands on land (housing, food production, energy infrastructure, and environmental goals) with safeguarding agricultural productivity. It commits to providing data and tools so planning decisions on housing and energy can be faster, clearer and more predictable.
Soil data is now freely accessible to all via the online National Soil Map. The resource should support free research and decision-making across agriculture, construction, conservation, climate science, hydrology, flood risk modelling and landscape management.
MHCLG has published a policy paper “Streamlining infrastructure planning: implementation plan”. It sets out key steps, based on the government’s September 2025 consultation, to streamline planning for Nationally Significant Infrastructure Projects (NSIPs). The plan is a delivery document for the Planning and Infrastructure Act 2025, confirming when revised guidance, secondary legislation and new Planning Inspectorate (PINS) services will be rolled out.
In related news, “The government has published its response to its 2025 consultation on the implementation of mandatory Biodiversity Net Gain for NSIPs. BNG is now scheduled to apply to NSIP applications from this coming November. In this article, we provide a quick overview, highlighting the essentials for promoters, landowners and other stakeholders involved in infrastructure projects.”
Lee Gordon, Partner, Planning & Infrastructure Consents
People in logistics
Logistics UK’s new Employment and Skills Report 2026 shows that workforce challenges in logistics have shifted from labour shortages to a deeper ‘capability gap’ – i.e. a growing mismatch between the skills employers need and those available in the workforce.
Several logistics and delivery operations across the UK have been affected by strike/industrial action during 2026. Check out our recent briefing for practical information and advice for employers.
Generation Logistics, in conjunction with Logistics UK member GXO, and the Department for Transport, has created a practical guide that explains how logistics employers should design and deliver work experience opportunities that support young people and strengthen future talent pipelines.
Implementation of the Employment Rights Act 2025 (ERA) will continue through 2026 and 2027. Several changes have already taken effect, including day one paternity and unpaid parental leave, changes to statutory sick pay and increased protections relating to industrial action. Logistics employers should keep workforce models, shift arrangements, absence processes and union engagement under review. To help, access our ERA tracker here, and see this Acas resource.
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Adjudication Matters: August 2026
Construction firms scale back amid market uncertainty
Housing targets face increasing pressure from water shortages
Supreme Court limits public nuisance on private land
The UK steel trade measure: how you can allocate risk and protect your financial position in construction contracts
Alastair
Robertson
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Gordon
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Robertson
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