The Brief | Edition 23 | For Supply Chain and Logistics Leaders

Welcome back to The Brief. We hope you’ve all had a good summer break. It feels like there’s been a lot happening across logistics over the past few weeks, but a few developments in particular have caught our attention.

The government has put a sizeable number against its ambitions for rail freight, while the latest port figures tell a more interesting story than the headline decline suggests. We’re also seeing another major workforce transition take place within UK contract logistics, against a backdrop of international shipping routes that continue to move around disruption.

There’s quite a bit to unpack. So, here’s what we’ve been reading and talking about this month.

 

UK Government targets 40% growth in rail freight by 2040

The government has set a new target to increase the amount of freight moved by rail by at least 40% by 2040, creating an interim milestone towards its existing ambition of 75% growth by 2050. If achieved, it would represent a considerable change in how goods move around Britain, particularly if the anticipated growth in high-value freight materialises.

The Department for Transport estimates that achieving the target could increase the value of goods transported by rail from £33.7 billion to £49.5 billion a year. The strongest growth is expected to come from high-value goods, where volumes could rise by 65%, while construction freight could increase by 45%.

Greater use of rail changes the relationship between terminals, road transport, warehousing and customer operations. For logistics businesses operating across those networks, that creates a greater need for leaders who understand how road and rail capacity work together, rather than viewing each mode separately.

We’re thinking about longer-term succession too. A 2040 target requires operators to have enough experienced people coming through the sector to deliver the additional capacity and operational change behind it. For businesses already competing for strong transport and operations leaders, that capability cannot be built overnight.

 

UK port freight falls 5%, but container traffic tells a different story

UK major ports handled 101.4 million tonnes of freight during Q2 2026, down 5% compared with the same period last year. Inward tonnage fell 4%, while outward tonnage decreased by 6%.

A 5% fall in headline port tonnage could suggest weaker activity across the board, yet container volumes are moving in the opposite direction. Container tonnage increased 9% to 18.7 million tonnes, while container traffic measured in units rose 12%.

London recorded particularly strong growth, with container tonnage increasing 19% to a record 6 million tonnes, supported by the opening of the fourth berth at London Gateway. Southampton also recorded an increase in container units.

Changing cargo profiles affect where operational pressure sits. Continued container growth at London Gateway and Southampton creates different demands around terminal operations, landside capacity and onwards distribution. Meanwhile, liquid bulk volumes fell 15%, accounting for much of the decline behind the headline figure.

We'll be watching where operators respond by adding leadership capability around growing parts of the network, particularly as additional UK port capacity comes online.

 

UK businesses are increasingly concerned about disruption to their supply chains  

In August, 28% of businesses with 10 or more employees said they were concerned about international conflict affecting their supply chains during the next year, while 21% cited shipping disruption. Compared with September 2025, those figures have risen by 17 and 12 percentage points, respectively.

Climate-related disruption is appearing more frequently too. Some 13% of businesses said they were concerned about climate change affecting their supply chains, compared with 4% in September last year.

As disruption becomes a more persistent part of the operating environment, expectations of senior supply chain appointments are shifting with it. Organisations increasingly need leaders who can challenge sourcing assumptions, identify dependencies across supplier and logistics networks, and make decisions quickly when freight routes, availability or costs change.

That expertise does not always have to come from an external appointment. Identifying people already within the organisation who have the judgement and adaptability to take on broader supply chain responsibility can be equally important, particularly when experienced leadership remains difficult to replace.

 

More than 2,000 GXO employees transfer to DP World this month

More than 2,000 employees across six UK grocery logistics sites are transferring from GXO to DP World during September, as a deal first announced in August takes effect.

The six facilities provide more than two million sq ft of warehousing capacity and serve grocery customers including Asda, Sainsbury's and Co-op. Five sites are in England and one in Northern Ireland, covering ambient, chilled, frozen and bonded operations.

The transfer was required as a regulatory condition following the Competition and Markets Authority's approval of GXO's acquisition of Wincanton. GXO will retain transport operations at applicable sites, while the warehouse operations become part of DP World's growing UK contract logistics business.

Integrating six established grocery operations and more than 2,000 employees into another logistics business puts considerable emphasis on continuity at site level. The fact that GXO retains transport operations at applicable locations adds another dimension, with warehouse and transport teams that previously sat within the same business potentially working across organisational boundaries.

Maintaining service through that kind of transition can be as demanding as the transaction itself. Retaining experienced site leadership and keeping established teams engaged will matter considerably when those facilities are responsible for supplying major UK grocery networks.

 

Global trade routes shift again as pressure moves between major shipping corridors

Global shipping networks are beginning to change again as carriers cautiously return capacity to the Suez Canal, while constraints remain across other major trade routes.

Maersk and Hapag-Lloyd are returning four more Gemini services to the Suez Canal, signalling a further step towards shorter Asia-Europe routings after prolonged diversions around the Cape of Good Hope.

The wider shipping picture remains unsettled, however. Vessel movements through the Strait of Hormuz remain well below recent norms, while drought has forced the Panama Canal to reduce daily transit capacity, with further restrictions possible if water levels continue to fall.

The return of Asia-Europe services through Suez could shorten lead times and improve vessel utilisation, while constraints elsewhere create different capacity and cost pressures. For businesses operating across several international trade lanes, contingency plans built around one route can quickly become exposed when displaced volumes put pressure elsewhere in the network.

Visibility across the wider network is increasingly important. Decisions around inventory, transport capacity, and customer commitments need to account for how disruption in one corridor can change conditions thousands of miles away.

 

Leadership outlook

One thing we’ll be watching over the coming months is how quickly some of these developments show up in hiring activity. That’s often where we get the clearest view of where businesses are investing, changing their structures or building capability for what comes next.

We work with supply chain and logistics organisations on senior appointments and on understanding the people and potential already within their teams. If you’re weighing up a business-critical hire, thinking about succession or trying to get a clearer picture of the capability within your business, we’re always open to a conversation.

?‍? info@mvp-search.com | ? mvp-search.com | ? 01905 773 370

We’ll be back next month with The Brief. Until then, feel free to share this with your team or let us know if there is a topic you would like us to explore next.

Till next time, The MVP Recruitment & Talent Solutions Team