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Rising fuel, labour and operating costs across the logistics sector risk creating renewed inflationary pressures that could feed through to businesses and consumers according to new analysis from Logistics UK.
The warning comes as the business group publishes its annual Manager’s Guide to Distribution Costs 2026, which shows vehicle operating costs increased by more than 12% in the year to April 2026, driven largely by a 36% rise in diesel prices, a 7% increase in vehicle insurance costs and an almost 8% growth in driver employment costs.
Logistics UK’s chief executive Ben Fletcher explains “As logistics businesses operate on extremely narrow margins and underpin every sector of the economy, these increases risk feeding through to the prices we all pay as consumers.”
“Our sector has the capacity to be a powerful catalyst for growth and resilience across the whole economy, but its ability to do this is by no means guaranteed. The cost increases outlined in our report are hitting businesses hard and demonstrate why we need a policy framework that supports the logistics sector to drive the economy forward.”
The Manager’s Guide to Distribution Costs 2026 draws on the latest financial data and the operational experience of Logistics UK members to quantify the operating costs faced by logistics businesses.
