Under the lens: Policies and headlines driving change in UK logistics

US investment boost

Following a year of relative uncertainty around future trade and relations with the US, President Trump’s state visit marked a step change, with £150 bn of inward investment announced. While the total includes some previously announced commitments, it still represents a substantial sum of capital investment.

£100 bn of the total is to come from Blackstone, which has pledged £90 billion in the UK in addition to the £10 bn previously announced for data centre development.

Also bundled into the total, is Prologis’ plan to invest £3.9 bn to deepen investment at its Cambridge Biomedical Campus and upgrade the Daventry International Rail Freight Terminal (DIRFT), supporting growth in rail freight logistics as well as the life sciences and advanced manufacturing sectors. Current occupiers at DIRFT include Royal Mail, ITX, Supply Chain Co-ordination Ltd (NHS) and Dunelm. Prologis is adding a £340m, 1.3m sq ft build-to-suit for M&S at DIRFT III, due to complete in 2029, to help double its food business.

There are also important boosts for the defence supply chain, with a new strategic partnership with Palantir announced that will unlock up to £1.5bn, including making the UK its European defence HQ.

Additionally, there were several announcements linked to data centre development, meaning continued demand pressures for power-ready industrial land sites.

Parcels to pallets

With the US ending the $800 de minimis exemption for imports (effective 29^th August 2025), small parcel flows to the US are likely to reduce. The US is one of the top destinations for parcel exports and the reduction will impact business planning. Conversely, the need for bulk shipments to the US and demand for freight forwarding is likely to rise, driving demand for 3PL services.

This shift could have important implications for the types of warehousing in demand. Parcel carriers use cross-docked facilities designed to maximise throughput and minimise dwell times. Parcels arrive, are scanned and sorted, then go straight back out to trucks, planes or vans. While 3PLs and freight forwarders utilise warehouses that hold stock for days or weeks, mainly on pallets (but also by individual product/SKU). They consolidate pallets or cartons into full containers (sea) or air freight pallets; handle bulkier items that don’t fit standard containers, and they keep goods under customs control (bonded/ETSF) until paperwork clears, then release them for export.

This shift is likely to reduce throughput in parcel carrier networks and cross-docked facilities, and increase the need for 3PL warehousing and bonded facilities. There is also likely to be a subtle shift in terms of the locations in demand. Parcels tend to rely on airfreight links, so sites around East Midlands Airport (the UK’s leading express hub) could see reduced demand from parcel carriers, while seaports such as Felixstowe, Southampton and London Gateway, and Heathrow Airport (with extensive, larger belly-hold exports) could see an uptick in demand from freight forwarders and 3PLs.

With the EU set to abolish its de minimis threshold from 2028, we could see this trend continue over the coming years.

Ports, planning and power

An updated ports planning policy is heading to the House of Lords for debate. The government published a draft National Policy Statement for Ports in June 2025 to update the previous planning policy for ports development, set out in 2012. The draft NPS reaffirms the need for significant port capacity expansion over the next 30 years, supporting trade, offshore energy and regional economies, with a presumption in favour of development. With substantial growth expected in trade volumes and sectors such as offshore wind, a refreshed ports policy statement is needed, the new framework is intended to speed up planning and help deliver wider economic growth. It is due to be debated in the House of Lords on 14^th October 2025.

UK–US “golden age of nuclear”. A new agreement between the US and UK governments will make it quicker for companies to build new nuclear power stations. The deal clears the way for a major expansion of new nuclear projects in the UK. The existing infrastructure and strategic locations of UK ports offer potential sites for future nuclear energy projects in the UK, especially for Small Modular Reactors (SMRs) and floating nuclear power plants (FNPPs), which offer solutions for ports to provide their own clean energy, decarbonize operations, and support the energy transition. X-Energy and Centrica plan to build up to 12 advanced modular reactors in Hartlepool, while Last Energy and DP World plan to establish one of the world’s first micro-modular nuclear power plants, backed by £80m in private investment, to unlock a clean power supply for the expansion of DP World’s London Gateway port and business park.

Fleet EV-olution continues

The plug-in van & truck grant has been extended to 2027. The government confirmed vital funding to support the uptake of electric vans and trucks in August, providing certainty for businesses to continue their switch to electric. Commercial transport is responsible for more than a third of CO₂ emissions on UK roads, meaning it is crucial businesses are supported in making the transition to electric. This move reinforces the benefits of EV fleet adoption and will accelerate demand for power-ready depots that can offer on-site charging capacity along key road-network junctions.

Cyberattack halts production

A cyberattack at JLR has brought UK production to a halt, with the closure current closure, which began on 31 August 31 August, set to last until at least 1 October, with the potential for disruptions to last into November. JLR and its Tier 1/2 suppliers will be feeling the strain of a prolonged shutdown. Some small businesses within the wider JLR supply chain rely solely on JLR for contracts.

The cause of the disruption lies in the fact that modern automotive manufacturers operate a just-in-time logistics and parts supply strategy. Rather than stockpiling parts, interconnected third-party systems receive updates for stock deliveries for vehicles that are being manufactured at the JLR sites.

This event has exposed significant weaknesses in cybersecurity and the reliance on digital interconnections across manufacturing, leading to urgent calls for more robust cyber resilience, including the potential need for greater contingency or buffer stocks to cushion against similar future disruptions.