Ben Fletcher, Chief Executive of Logistics UK, examines its recent report which examines the opinions and experiences of over 500 professionals from across the logistics sector
Logistics businesses continue to prioritise technology and innovation investment that support operational efficiency, cost control and the transition to lower-emission operations but confidence in the logistics sector's ability to achieve net zero emissions by 2050 remains low.
These are some of the findings revealed in The Logistics Report 2026, Logistics UK’s annual analysis of the sector that also includes the results of our annual Logistics Industry Survey. This brings together the opinions and experiences of over 500 respondents from across the sector.
We know from experience how committed the industry is to decarbonisation, and our members, along with the wider sector, continue to make significant investments to facilitate the switch away from conventional fuels. For example, major EV charging hubs have opened this year in key strategic locations in the East Midlands and Tilbury, and electric HGVs have also travelled into continental Europe through the Channel Tunnel for the first time.
The Logistics Report 2026 reflects this progress, with 64.3% of respondents to the survey indicating an intention to invest in vehicle technologies, reflecting the adoption of cleaner vehicles and transition to low carbon operations. Investment in alternative fuels is led primarily by battery electric vehicles, with 66.4% of respondents reporting investment in electrification, although the report also reflects the importance of hydrotreated vegetable oil (HVO) in achieving a switch to low carbon operation: 41.8% of respondents are already adopting this technology and benefitting from significantly reduced carbon emissions without major modifications to existing diesel engines.
Despite the commitment to decarbonisation investment, 75% of respondents reported they are either “not so confident” or “not at all confident” that the sector will reach net zero by 2050. Only 6.3% of respondents are “very” or “extremely confident” that targets will be met.
This low confidence is likely a reflection of ongoing challenges surrounding decarbonisation including the high initial costs of low-emission vehicles, limited charging and refuelling infrastructure nationwide, and concerns about the suitability of current technologies for heavy or long-distance operations. Over half of respondents (56.0%) disagreed that they could easily install chargers with sufficient power supplies at their depots, highlighting persistent challenges related to grid capacity and infrastructure upgrades. Concerns about the wider charging and refuelling network are even more pronounced, with only 1% of respondents agreeing that that public infrastructure is sufficient to support fleet operations.
These infrastructure and operational constraints may also be affecting the take-up of funding schemes designed to support fleet decarbonisation, and the Logistics Report highlights how relatively few organisations have accessed government support. Less than a fifth of respondents reported accessing the Plug-in Van Grant, while only 15.5% have used the Plug-in Truck Grant. Similarly, under 20% of respondents have accessed support through the Depot Charging Scheme (DCS). In each case, more than four-fifths of respondents indicated that they had not accessed these funds.
However, now all these grants and schemes have been extended up to March 2027, there is a great opportunity for operators to take advantage of the financial support that is available. For electric vans, operators can receive a grant of up to £5,000. The plug-in truck grant has been increased significantly for this financial year, with operators able to access grants of up to £81,000 for some vehicles. The government has committed £170 million towards the DCS, and given a majority of operators (76.7% of HGV operators and 79.1% of van operators) expect to recharge their vehicles at their own depot sites, this new scheme is essential in supporting operators build confidence that they will be able to achieve this.
Even with government support, investment costs can be significant, especially for smaller businesses who are the backbone of the sector. This is why the postponement of the rise in fuel duty and a 12-month road tax holiday for HGVs is so important to the sector. The decisions show the government has listened to our industry’s concerns and will help bolster the increase in confidence that we saw at the beginning of the year – especially for SMEs.
The efficiency of logistics operators can often mean their work goes unseen, but the sector’s ability to thrive and continue powering the economy is by no means guaranteed. Yet, with the right policy framework, sustained public and private investment and closer partnership between government and industry, logistics has the capacity to be a powerful catalyst for growth and resilience across the whole economy.
A summary of The Logistics Report 2026 and details of how to obtain the full report can be found here.
