CONFIDENCE in the UK logistics sector has risen to 62.5, the highest level since 2015, despite staff and supply shortage issues.

This rise is reported according to the latest Barclays-BDO Logistics Confidence Index.

Operators still face significant business challenges, with 96% pointing to staff shortages as their main concern and many are worried about the increased labour costs this will cause.

The research, which takes into account the views of 100 leading logistics businesses, also shows that many operators feel the acceleration in e-commerce is creating new opportunities, while those serving hospitality and leisure firms are seeing their markets revive.

James Lean, head of transport & logistics at Barclays Corporate Banking, said: “It’s encouraging to see confidence across the industry return after such a turbulent period. Having dealt with the challenges posed by the pandemic, the industry is feeling more confident about navigating through pressing headwinds around staff shortages. This is a highly resilient and innovative sector with increasing opportunities for growth and the future prospects for UK logistics appear to be looking up.”