The confidence of logistics businesses is beginning to show green shoots of recovery following a turbulent start to the year, a new report from Logistics UK shows.

The latest Logistics Performance Tracker, which features results for Q2 2026, reveals greater confidence in business outlook and financial health. The quarterly barometer, which uses publicly available data and information from survey respondents, shares insights into the health of the sector and long-term trends.

The new report comes after the conflict in the Middle East pushed up fuel prices and operating costs, and paints a picture of increased business confidence.

Using a scale from 1 to 10 or 1 to 100, with the highest number representing the best score, the survey reveals that business outlook has improved from 5.8 in Q1 to 6.5 out of 10, with logistics businesses feeling more positive about their prospects and the economy as a whole. Meanwhile, respondents felt that the financial health of their businesses has improved slightly from 7.2 to 7.5.

However, although the near-term outlook improved this quarter, business expectations remain cautious overall, informed by pressures that continue to persist.

This caution includes the impact of continued high transport costs, which scored low marks by respondents at 11.5 out of 100, while 57% of respondents report that they expect costs to rise in the short to medium term. Although overall this is an improved position compared with Q1’s responses, the survey’s findings suggest that firmer demand across the economy could be offset by tighter margins and greater financial strain on road-based operators which are already operating on wafer-thin margins with little room for manoeuvre.

Other concerns captured include the continued business pressures caused by freight rates, the price paid to move cargo from one location to another, with the majority of respondents expecting rates to rise, both internationally (70.4%) and domestically (67.6%). Continued disruption to global shipping routes is still a critical concern, with 26% reporting worse conditions than Q1, particularly for a sector that relies on a fully interconnected network of transport modes through which to move goods.

Ongoing recruitment issues are also proving a pain point, as 44% of respondents said they do not have enough professional drivers and almost a third of those questioned reporting severe or very severe difficulties with filling fitter, mechanic or technician vacancies.

Logistics UK’s chief executive Ben Fletcher said gradual signs of recovery were encouraging but more needed to be done to drive the growth the Government has committed to achieving.

“The efficiency of the logistics sector means its contribution to keeping everything running often goes unrecognised,” continued Fletcher. “But the challenges firms face on a regular basis, while operating on narrow profit margins, make it vital that the industry continues to have access to the skilled staff it needs, as well as access to transport corridors at the appropriate times, with no restrictions or excessive costs.

“Our sector needs the support of a policy framework that acknowledges the critical role that logistics plays in driving economic growth, alongside sustained public and private investment in infrastructure and a closer partnership between government and industry, all of which will give the sector the capacity to be a powerful catalyst for growth and resilience across the economy.”

Logistics UK’s Logistics Performance Tracker Q2 2026 is online here.