Logistics businesses have shown impressive resilience throughout the Covid-19 pandemicCovid-19 pandemic, but costs are set to rise warns Logistics UK.
The cost of moving goods and services is likely to increase in the short to medium term, as the economy feels the impact of the Covid-19 pandemic, said Elizabeth de Jong, policy director, Logistics UK.
“The logistics industry has proved invaluable to the UK economy throughout the Covid-19 pandemic, with businesses across all modes of freight transport taking quick action to adapt their operations to meet the needs of consumers, she said.
“However, a reduction in supply of international shipping containers, and ships to carry them, led to significant rises to the cost of moving goods and services internationally; by the end of 2020, shipping container rates had increased by 185% year-on-year and air freight costs rose significantly when cargo space was constrained due to the grounding of passenger flights.
“Fuel prices collapsed at the start of the pandemic but have now recovered to pre-Covid-19 levels. This reduction may have helped to offset inflation in the short term, but rates charged for all modes of transport are expected to rise in 2021, which could drive increased prices across the economy.”
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