Across Logistics has published Logistics trends 2025: Technologies, AI, challenges and opportunities, analysing the main trends shaping the sector today.

Decarbonisation

The UK government has launched the DRIVE35 funding programme to support a range of projects which help the transition to zero-emission vehicle manufacturing. The  automotive innovation programme forms part of the Advanced Manufacturing Sector Plan, within the UK’s modern Industrial Strategy. It will commit £2 billion in funding to 2030 and an additional £500m for research and development to 2035.

The government has also launched the Depot Charging Scheme, which aims to support the uptake of zero emission HGVs by part-funding the installation of charging infrastructure at fleet depots. The scheme is open to public and private sector fleets, local authorities and non-profit organisations, located in England, Scotland, Wales and/or Northern Ireland.

The application window will close on 28 November 2025 or when funding has been exhausted (whichever is sooner), and works must be completed by 31 March 2026. Support for the purchase of electric vans and HGVs is available through the Plug-in Van and Truck Grant.

Transport Scotland has published a new report which contains a mapping of existing and planned HGV charging sites in Scotland. The report also highlights where en route charging stations are needed for electric HGVs across Scotland.

The UK government has published the Net Zero Technology Outlook, which offers independent analysis of the technologies the UK must prioritise by 2050 to deliver on its net zero commitments. The report covers 18 sub-sectors within five major emitting sectors: industry; transport; heat and buildings; agriculture, land use and waste; and power.

The government has published a summary of responses to its statutory review of the renewable transport fuel obligation and provided an update on the scheme.

The UK Emissions Trading Scheme (ETS) Authority has confirmed new timelines for bringing the domestic shipping, energy-from-waste, and carbon removals sectors into the national carbon market.

Also on the UK ETS, the government has published its interim response to the consultation on including the maritime sector in the scheme.

Following publication of the Maritime Decarbonisation Strategy, the government has now announced a further £448 million over the next five years for research and development investment for the UK Shipping Office for Reducing Emissions (SHORE) programme. The aim is to accelerate the development of technologies for the decarbonisation of the sector.

Intelligent Energy, a hydrogen fuel cell developer based in the UK, has just landed £17 million funding from the Aerospace Technology Institute Programme to launch Project HEIGHTS.

It aims to fast-track development of a new zero-emission hydrogen fuel cell system that could power commercial aircraft within the decade. Hydrogen Fuel News has reported that, if all goes according to plan, the technology could save 25.6 million tonnes of CO₂ p.a. and create up to 1,600 new jobs.

Road strategy and freight infrastructure

The Department for Transport has made a statement in Parliament outlining 5 strategic road schemes and 5 key rail upgrades that it says will support 42,000 jobs and pave the way for 1.5 million new UK homes.

The Department for Transport has published the draft Road Investment Strategy 3. It outlines the government’s wishes for National Highways and the future of the Strategic Road Network. Key announcements include: £25bn investment 2026-2031, with 43% focused on maintenance and renewals rather than new capacity; permanent cancellation of the smart motorways programme permanently; and final strategy to be published by March 2026, with implementation beginning April 2026.

The Competition and Markets Authority has launched a market study to review how the civil engineering sector operates to improve the design, planning and delivery of key road and railway infrastructure.

Ernst & Young has presented a study, commissioned by Europe’s Rail Joint Undertaking, on the potential contribution of rail freight to the development of net-zero logistics chains across Europe.

The Journal of Commerce and FreightAmigo are among industry commentators noting a growing trend towards shared terminal trucking networks – logistics hubs operated by 3PL providers that serve multiple clients simultaneously, offering shared infrastructure for truck loading/unloading, cross-docking, and short-term storage. Unlike traditional dedicated terminals, these facilities are designed for flexibility, scalability, and cost-sharing.

Key drivers behind the trend include: e-commerce and omnichannel growth; cost efficiency; risk mitigation; urban and regional logistics optimisation; integration of tech such as AI-driven warehouse management systems (WMS), IoT sensors, and automated sorting and cross-docking; and sustainability/ESG ambitions.

As from 1 September 2025, the Import Control System 2 (ICS2) is fully deployed across all transport modes, including road and rail, for collecting details on all goods entering or passing through EU borders.

Supply chain and tech

The Financial Times (3 September 2025) has reported that some of the world’s biggest air cargo operators are facing a capacity crunch. Of the approximately 630 large wide-body freighters in active operation, up to 150 are nearing or have already entered their retirement window and there is very limited new wide-body capacity entering the market. The supply-demand imbalance for large wide-body freighters is expected to intensify over the next several years.

The Jaguar Land Rover and Asahi cyberattacks are the latest in a line of attacks significantly affecting manufacturing businesses. We’ve created an interactive tool to help you navigate the evolving legal and regulatory challenges surrounding data security, privacy, and compliance; to help you spot gaps in your defence; and to support your business’ reaction and rebuilding if/when the worst happens. Click here to find out more and to access the tool.

Reuters (23 September 2025) has reported that South Korea, Japan and the US have expressed concern about increasing destabilising activities around Taiwan. The statement didn’t specifically mention China, but China (which claims almost the entire South China Sea and views Taiwan as its own territory) has stepped up military activities nearby, including staging war games.

Taiwan’s government rejects China’s territorial claims. The Taiwan Straight is of strategic importance for global supply chains, especially in the technology and semiconductor sectors. It’s a key maritime passage where even the threat of conflict can lead to stockpiling, supply chain reconfiguration, and increased insurance and shipping costs.

The UK government has published its Defence Industrial Strategy 2025. It includes investment intended to boost innovation, industry, and employment; and includes measures to improve skills in the sector and the procurement process. The Strategy also offers a new Supply Chain Capability Programme and a Defence Investment Plan for the next 10 years.

We’ve noted previously that China is reportedly (Reuters) building and training humanoid robots at such a scale that their cost could be halved (paving the way for economic viability and wide-scale commercial use) by 2030. In related news, Amazon is using humanoids with a sense of touch in its fulfilment centres, and MIT, UCL and Cambridge University are reporting significant developments in humanoid robots both with and without artificial skin.

A recent newsworthy development is Google DeepMind’s Gemini 1.5. It’s a vision-language-action AI-powered robotics model that can now see, process instructions, and act accordingly. It can carry out real world tasks such as, for example, sorting piles of laundry by colour. In the Financial Times (25 September 2025), Ingmar Posner, professor of applied artificial intelligence at the University of Oxford, said the development could help robotics reach a “ChatGPT moment”. The FT has also recently reported (3 September 2025) on RoboBallet, which could revolutionise production lines.

Construction and development

Developers operating in all sectors should be are of the Construction Products Reform Green Paper on wide-ranging plans for future regulation of construction products. Proposals include bringing all construction products within the general product safety regime; enhanced regulatory, surveillance and enforcement powers; development of a new single Construction Products Regulator; and civil and criminal penalties for manufacturers that engage in misleading practices or neglect their responsibilities regarding product safety.

The government has said that the paper is the first step in what will be a proactive process of engagement and consultation across the system in the medium to longer term. The Chartered Institute of Building, in collaboration with various construction industry bodies has published the Guide to Products Critical to Safe Construction – a new resource which aims to signpost best practice, raise awareness of compliance standards, and provide advice on how to determine if a product is critical to safe construction. It’s likely to be of value to clients across the build spectrum, from product and project design and manufacture, to contracting and development/employment.

Developers may be aware that Lewes District Council recently agreed to recognise the legal rights of Sussex’s River Ouse, in a charter to protect the river’s fundamental right to “exist, thrive, and evolve”. The move was intended to promote action to restore the river’s and the surrounding catchment’s ecological and chemical health. Basingstoke and Dean Borough Council, Test Valley Borough Council and Southampton City Council have now similarly formally recognised rivers within their authorities.

This is clearly a growing trend across the UK (and internationally – rivers and natural habitats in several other countries have also been granted legal rights/legal personhood). Granting rights to rivers and other natural resources could have significant implications for businesses operating near or impacting them. In particular, developers may face more rigorous environmental assessments and/or planning requirements, which could affect timelines, costs and viability.

In, Crest Nicholson Operations Ltd v Secretary of State for Housing, Communities and Local Government [2025] EWHC 2194 (Admin) the claimant argued that a water neutrality planning condition was unlawful on the grounds (1) the Inspector and Secretary of State erred by proceeding on the basis that groundwater abstraction might continue at a level that could harm the protected habitats through reliance on imperative reasons of overriding public interest; and (2) they also erred in their approach to uncertainty in the appropriate assessment, contending that what was required was certainty as to the end (being protection of the site), not the means by which this would be achieved. The High Court dismissed the claim on both grounds.

The Joint Contracts Tribunal (JCT) has released the Target Cost Contract 2024 on 25 June 2025. It is the final piece in the publication of the JCT 2024 Edition suites. This new contract family introduces a fresh approach by the JCT to cost management and collaboration. See our briefing for more information.

People in logistics

The Employment Rights Bill (ERB) introduces sweeping reforms with potentially major implications for employers in the logistics sector. Key changes include enhanced protections for agency and zero-hours workers, the regulation of umbrella companies (which may be relevant for the self-employed couriers out there), and broader consultation thresholds across multiple sites when conducting collective redundancy exercises. Trade union presence in the sector may also increase due to simplified recognition rules and expanded access rights.

The All-Party Parliamentary Group for Freight and Logistics’ is considering responses to its call for evidence to inform the drafting of a new report on fostering diversity in the logistics workforce – ‘Attract, Train, Retain’. Logistics UK has requested greater flexibility in the use of the Growth and Skills Levy, urgent improvements to the Access to Work scheme, and extended National Insurance exemptions to support inclusive hiring.