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Growth In The Transport And Logistics Sector

Dec 11, 2020

The transport and logistics sector has been highlighted as an area undergoing significant growth – both before the COVID pandemic hit and accelerated further by lockdowns.

What is fuelling growth in the transport and logistics sector?

The COVID-19 pandemic has really accelerated growth in the transport and logistics sector in 2020.

The transport and logistics sector was highlighted as one of the sectors needing to urgently recruit more staff as the COVID pandemic took hold. Demand for home delivery has been a big driver of this growth. From food deliveries, to online shopping and the move away from in person shopping driven by lockdowns and fears over the pandemic.

This move towards online shopping is also impacting supply chains, with warehousing and storage businesses experiencing surges in demand.

There has also been an increase in reverse logistics, which is becoming a sector in its own right due the demand for the return of unwanted goods. Businesses themselves are implementing reverse logistics processes and whole businesses focussed solely on the practice are also emerging.

This article takes an interesting look at the reasons why the COVID-19 pandemic has accelerated development within the transport and logistics industry and the trends it has created which look set to remain and influence the sector over the coming years.

What challenges may the transport and logistics sector face?

Despite growth, the transport and logistics industry has had and will continue to have many factors to adapt to both in 2020 and the coming years.


The big challenge set to face the UK transport and logistics sector in the imminent future is Brexit. Brexit could have big implications for how the sector operates. And anyone looking to enter the sector needs to do so with an awareness of this, the potential impact and actions needed to mitigate any impacts.

Whilst we don’t yet know what the outcomes of the ongoing Brexit talks will be, the transition period ends on the 31st December 2020 regardless.

Some areas Brexit could change include:


Getting the right people for your business could be another challenge. There has been a reported shortage of HGV drivers for many years now. And this is an issue which extends to the sector as a whole. It could be further exacerbated by Brexit related immigration changes.

Customer expectations

Expectations of consumers continue to develop. The need for fast, low-cost delivery will continue to impact the transport and logistics sector over the coming years

Environmental Concerns

With the announcement that the sale of new petrol and diesel cars will be banned from 2030, sustainability and the environment are moving to the forefront. Those in the transport and logistics sector will need to respond and also comply with any upcoming government regulation such as Clean Air Zones and Ultra Low Emission Zones

Insurance needs in the Transport and Logistics Sector

Insurance will be a significant consideration for those working in the transport and logistics sector. 

For those transporting goods from one place to another, you’ll need to have adequate Goods in Transit insurance in place. Goods in transit insurance covers your liability for goods or products that are lost, damaged (either maliciously or accidentally) or stolen while they are being transported or stored immediately beforehand.

Fleet operators will need to ensure that they have the correct insurance in place to protect vehicles. The exact cover will vary depending on whether you run a fleet of cars or vans, or operate HGV and lorries given the differing risks associated.

If you are an independent driver in the transport and logistics sector, you’ll want to consider owner operator insurance to cover you against a range of eventualities.

As with all businesses, you will need to have the appropriate business insurance in place.

  • Employers liability insurance which is a legal requirement as soon as you employ staff.
  • Directors & Officers insurance which protects the directors and senior managers of a business in the event that one of them allegedly makes a mistake carrying out their duties as a director or officer of the business which causes harm (financial or otherwise) to others
  • Cyber insurance to protect against the growing risk of cyber crime

Other considerations if you employ people to drive for work

Health and safety will also be a big consideration for your business alongside risk management. Whatever the size of your business you will have duty of care to fulfil.

It is important that you keep policies and procedures up to date, train your staff, drivers and managers on these documents and take a proactive approach to managing health and safety. You will also need to have a defined approach to risk management linked both to driving for work as well as across your entire business operations.

At Anthony Jones we have a wealth of experience and knowledge working with the transport and logistics industry. Not only to help you obtain the insurance you need for your business, but also in risk management. We work with a number of partners including DAC Beachcroft, our legal partner and with whom we work in conjunction with to help businesses put focus on effective Health and Safety management. We do so through‘RESILIENCE’ which is DAC Beachcroft’s driver and fleet safety solution. We also work with Cardinus who are a global risk and safety partner for Fleet Risk Management services. Get in touch with us today on 020 8290 9099 or email us at commercial.motor@anthonyjones.com

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