Untangling Practical and Legal Hurdles to Sustainable Logistics

Electric vehicle charging infrastructure and easing highways laws could help logistics providers to innovate and decarbonise their operations, write Tim Jones, director of marketing, communications and sustainability at DPD, and Ben Standing, partner in planning and environment at UK and Ireland law firm Browne Jacobson.

The UK’s logistics industry stands at the heart of the nation’s net zero ambitions, moving everything from manufacturing components to finished goods across complex supply chains that underpin the economy. As the government pursues its 2050 net zero targets, the role of logistics has never been more critical.

However, the environmental gains achieved in production risk being undermined if the carbon footprint is simply transferred to the delivery process – known as Scope 3 emissions, which are embedded in supply chains and account for the vast majority of a company’s carbon footprint. This interconnectedness means logistics companies are not merely participants in the green transition, but enablers of broader economic decarbonisation across multiple industries.

Management consultancy McKinsey & Company estimates the global logistics industry accounts for about 7% of the world’s greenhouse gas emissions, with 80% of these emissions related to transportation. While there are already some exciting advances in the green logistics revolution, a number of practical, legal and regulatory hurdles remain.

Innovation driving change

A successful sustainability transition requires more than simply swapping diesel vehicles for electric alternatives. Innovation must address practical challenges including payload considerations, driver route optimisation, vehicle range limitations, and the development of both on-site and public charging infrastructure.

As part of its commitment to net zero by 2040, DPD has developed smart charging systems that allow drivers to book charging slots and join virtual queues, reducing anxiety about charger availability. It is also trialling fully-electric, autonomous robot deliveries in Milton Keynes, navigating the city’s traffic-free Redway network to access nearby residential neighbourhoods.

Practical and legal hurdles slowing progress

Despite technological advances, significant practical obstacles remain. Effective government support for a green transition within the logistics industry is therefore required via co-ordinated action across multiple policy areas. There are now about 80,000 charging points in the UK, but there is some way to go for the Department for Transport to meet its target of at least 300,000 points by 2030. A Public Accounts Committee report published in March 2025 found the government has been slow to address gaps in charge point provision, with regional divides and inequalities across the rollout.

The legal landscape surrounding emerging logistics technologies presents a complex web of regulatory requirements that are still evolving. The deployment of autonomous delivery robots on public highways raises novel legal questions about liability, insurance requirements, safety standards, and the interaction between automated systems and existing traffic regulations.

Current legislation was not designed to accommodate delivery robots, drones and other autonomous systems operating in shared public spaces. This creates uncertainty for logistics companies seeking to invest in these technologies while ensuring compliance with existing laws and regulations. Establishing regulatory sandboxes would allow for safe testing and deployment of innovative technologies.

Insurance and liability frameworks require careful consideration when deploying new technologies. Questions arise about responsibility in the event of accidents involving autonomous systems, the adequacy of existing insurance products and the development of new risk assessment methodologies for novel technologies.

Collaborative pathways forward

McKinsey estimates worldwide demand for green logistics will reach £350bn by 2030, comprising 15% of total global logistics spend. This shows the prize for success is substantial: a logistics industry that not only reduces its own environmental impact, but enables broader economic decarbonisation while maintaining the efficient goods movement that underpins modern life.
The green logistics transformation, however, requires collaboration between industry, government and other stakeholders to untangle the various practical and legal challenges.

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XPO and PepsiCo Announce UK Transport Partnership

XPO Logistics has entered into a major new partnership with PepsiCo to become their chosen core transport partner for England and Wales. The partnership with XPO Logistics will operate across all four of its main UK distribution sites in Leicester, Lutterworth, Coventry, and Warrington.

PepsiCo is one of the world’s leading food and beverage manufacturers. Every day, millions of people across the UK enjoy PepsiCo’s snacks, oats and carbonated soft drinks. The company’s portfolio encompasses world famous brands such as Pepsi MAX, Doritos, 7UP Zero Sugar, and Quaker Oats, alongside its much-loved, local and regional brands, including Walkers, Wotsits, Monster Munch, and Pipers.

Beyond the cupboard staples and snack-time favourites, PepsiCo is a business committed to driving positive action for the planet and people, through its PepsiCo Positive (pep+) agenda. Launched in 2021, pep+ is PepsiCo’s end-to-end sustainability and business strategy. It’s a framework that drives action across agriculture, supply chains, product portfolios, and communities. To support this vision, PepsiCo has selected XPO Logistics as a key partner to advance its decarbonisation strategy in the UK.

Under the new partnership, XPO Logistics will deploy state-of-the-art Mercedes-Benz eActros electric vehicles, converting more than 1 million road kilometres annually from diesel to battery electric. This transition represents a reduction of over 1,200 tonnes of CO₂ emissions per year from PepsiCo’s transport operations — a critical step on the road to net zero emissions by 2050.

But sustainability is about more than just trucks. At the heart of the initiative is XPO Logistics’ proprietary CO₂ Reporting Dashboard, a cutting-edge tool powered by AI-driven scenario modelling, live data analytics, and proactive planning insights. This system enables PepsiCo to track, verify, and optimise carbon reduction strategies in real-time, while improving logistics efficiency and service to customers.

Dan Myers, Managing Director – UK and Ireland, XPO Logistics, said: “Sustainability is in our DNA. We are proud to partner with PepsiCo on this journey, combining investment in electric mobility with advanced technology and operational excellence. Our shared ambition goes beyond compliance — it’s about transformation. I believe this is just the beginning of what we can achieve together.”

This collaboration forms a key part of PepsiCo’s broader decarbonisation journey, demonstrating how purposeful partnerships can accelerate climate action and improve value chain resilience. With shared values, shared investment, and a shared vision, PepsiCo and XPO Logistics are delivering a positive impact for consumers, the supply chain, and the planet.

Heiko Selzam, Managing Director, Daimler Truck UK, said: “We are very proud to strengthen our partnership further with XPO Logistics with this order of our award-winning eActros 600s for the PepsiCo partnership. This commitment underscores the recognition of both companies of the critical role these vehicles will play in achieving their sustainability goals. Following extensive collaboration, this order firmly establishes the eActros 600 as a leading solution in the electric truck market. We are looking forward to seeing these trucks operational from 1 August.”

Andrew Smethurst, UK Logistics Director, PepsiCo, said, “XPO Logistics has shown itself to be the ideal partner to help advance our PepsiCo Positive ambition. From their industry-leading sustainability credentials to a strong safety culture and transparent operational model, their team has consistently delivered innovation and value. This new partnership will play a vital role in further reducing our logistics emissions as we move iconic products like Walkers crisps and Doritos to our customers across the UK.”

XPO Logistics is a leading innovative supply chain company in Europe, offering end-to-end logistics solutions that combine full-truckloadless-than-truckload, pallet distributionlast-mile deliveryglobal freight forwarding, and warehousing services. The company tailors its solutions to the specific needs of its customers in a wide range of industrial and consumer sectors.

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DHL Opens Dublin Facility Supporting Tech and Healthcare Growth

  • The new facility harnesses renewable energy and sustainable solutions, achieving BREEAM ‘Excellent’ and LEED ‘Gold’ classification

DHL Supply Chain today announces the opening of a new multi-user facility in Dublin, as part of the €637 million investment into the UK & Ireland region. The site is optimised for customers in the technology, life sciences and healthcare sectors, and delivers a range of specialist services.

These sectors are growing at pace, with a strong presence in Ireland which is host to 9 of the top 10 global software companies and 20 of the top 25 pharmaceutical companies in the world. The new Dublin-based site leverages DHL’s specialist services to directly address the unique needs of businesses in these industries.

From expert compliance support to customs clearance tools to full supply chain visibility, DHL delivers the right programmes and solutions to enable seamless operations and informed decision-making at all stages. For example, life sciences and healthcare customers at the new site benefit from the guarantee of zero time out of refrigeration for relevant products, with unloading docks sealed to vehicles. This enables temperature to be fully maintained at all times, an innovative feature which sets an industry standard.

Designed with sustainability at the fore, the building is certified as BREEAM ‘Excellent’ and LEED ‘Gold’, featuring several sustainable solutions including solar panels. The fleet operating out of the Dublin facility also harnesses renewable energy with a mix of electric vehicles and biomethane trucks helping to minimise carbon emissions on the road. DHL is also delivering innovative circular solutions, enabling DHL and its customers to extend the value and lifespan of products, reducing environmental impact by returning, recovering and reusing materials wherever possible.

With over 265,000 square feet of operating space, including 60,000 square feet of mezzanine flooring and 33,000 pallet spaces, the facility is located at the Quantum Distribution Park in Kilshane. The site and its customers benefit from strong transport links, situated close to Dublin Airport, Dublin Inland Port and Dublin Port.

Patrick Corbett, Managing Director Ireland, DHL Supply Chain says, “As the technology, life sciences and healthcare sectors continue to scale rapidly in Ireland, we are delighted to be opening a cutting-edge facility that caters to their needs with our specialist services. These are sectors which need flexible and resilient operations and our innovative supply chain solutions help them to maximise growth opportunities while minimising risk. The new site has been designed with longevity in mind, building in sustainable solutions across warehousing and transport.”

Peter Burke TD, Minister for Enterprise, Tourism and Employment said: “DHL’s latest investment in Ireland marks a bold step towards the future of sustainable and high-tech logistics. By embracing innovation and sustainability, DHL is not just expanding its footprint but setting new standards for the industry. DHL’s investment in their cutting-edge Quantum facility will support our drive to build on our nation’s international competitiveness.”

Michael Lohan, CEO of IDA Ireland said: ‘’DHL’s announcement further cements Ireland’s position as a leading location for global firms in the supply chain industry. This new facility demonstrates DHL’s further commitment to embedding themselves in our vibrant business community.’’

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Podcast: Sailing Towards Net Zero – Maritime Operations

How is the maritime sector navigating the twin pressures of decarbonisation and digitalisation? What role do regulation, education, and innovation play in steering global shipping toward a greener future?

In this edition of Logistics Business Conversations, host Peter MacLeod, editor of Logistics Business Magazine, welcomes Anna Kaparaki – senior solicitor, DBA researcher in maritime decarbonisation, and Course Director for the MSc Sustainable Maritime Operations at Liverpool John Moores University.
Together, they explore the seismic shift taking place across the maritime industry as it races to meet net-zero targets, comply with evolving international regulations, and embrace the circular economy.

In this episode, you’ll discover:

  • How emerging technologies like AI, IoT, and digital twins are enabling greener, more efficient maritime operations
  • The growing complexity of global and regional sustainability regulations — from IMO frameworks to the EU ETS and FuelEU Maritime
  • Why education and training are critical to preparing the next generation of maritime professionals
  • Real-world decarbonisation case studies, from wind-assisted propulsion to methanol-fueled container ships
  • Strategies for implementing circular economy principles and sustainable ship recycling
  • The impact of international maritime law and insurance on green compliance
  • Career opportunities in ESG compliance, green finance, and maritime sustainability management
  • The role of ports, intermodal systems, and digital platforms in building more resilient, lower-carbon supply chains

As Anna says, “Technology alone won’t solve these challenges. We need professionals who can integrate technical, legal and commercial knowledge to lead maritime’s sustainable transition.”
Whether you’re a maritime professional, policy expert, student, or logistics leader, this conversation offers practical insights into the challenges and opportunities shaping the shipping industry’s net-zero journey.

Listen now: Logistics Business Conversations – The Logistics Podcast

This episode is in partnership with Lloyd’s Maritime Academy and Liverpool John Moores University

New Facility in Vianen for FedEx

FedEx has announced the opening of its newest facility in Vianen, the Netherlands. This modern site, designed to handle both parcel and pallet operations, marks a significant step forward in enhancing logistics infrastructure in the Netherlands. The new facility boosts the efficiency of sorting and shipping processes and is designed with safety and sustainability in mind.

Strategic Growth and Operational Efficiency

Built for strategic growth, the new facility in Vianen features a warehouse space of 5,865 m² and 816 m² of office space. It offers extensive operational benefits compared to the previous location. It includes ten dock doors for trailers – one equipped with a scissor lift and nine with loose load capabilities. A new sorting machine significantly increases efficiency, with a maximum sorting capacity of 3,600 parcels per hour. Thanks to 48 direct loading positions for vans at the conveyor belt, parcel processing is now faster and ergonomically improved.

Advanced Technology

The facility is equipped with new technologies, including parcel X-ray, a customs cage, and a designated aviation security area for processing secure air freight. Additionally, the site features a caster deck to efficiently unload unit load devices from trailers. These improvements enable faster parcel handling and delivery, while the advanced sorting system automatically detects whether shipments have been cleared by customs. Moreover, the planning department is located on-site, allowing for optimal freight scheduling.

With an A-level energy label and FedEx’s broader goal of achieving carbon-neutral operations by 2040, the facility has been designed with sustainability in mind. It includes fourteen charging stations for electric vehicles and four charging points for the general public. The site is also equipped with LED lighting and automated lighting sensors to minimize energy consumption. FedEx has scheduled an initial three electric vehicles for deployment in 2025, as part of the company’s phased approach to electrification.

An Improved Working Environment

Beyond operational efficiency and sustainability, FedEx is also investing in a comfortable and safe working environment. In addition to ergonomic workstations, modern office facilities, and a customer desk for enhanced service and direct shipments, the Vianen facility incorporates advanced safety measures. These include a security cage and weekly training sessions to ensure a secure workplace.

“Our new facility in Vianen plays a crucial role in optimising our first- and last-mile operations, enabling us to serve our customers even better,” said Ron Willemsen, managing director ground operations, Benelux at FedEx. “We are proud of the sustainable and innovative solutions this location offers. The opening of the new facility in Vianen highlights our commitment to customer focus, efficiency, and environmentally friendly logistics. We continue to invest in solutions to strengthen our position as a leading logistics service provider.”

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Webinar: Navigating your Supply Chain Journey. Register Now

Join Logistics Business Editor Peter MacLeod and his guest, Steven Timberlake of Infios, for a live Webinar on Wednesday July 30th, 11.00 BST/UTC, 12.00 CET. Register to watch it here now.

Synopsis:

In this webinar Steven Timberlake of Infios discusses how you can measure your organisation’s level of supply chain maturity and the steps involved in developing greater efficiency and resilience in today’s challenging environment. Together with Peter MacLeod, Steven will explore topics including artificial intelligence, automation and system modernisation and outline how they form part of the practical steps that any organisation can implement today to relentlessly improve supply chain performance tomorrow.

Steven Timberlake, Infios

Steven Timberlake provides thought leadership and strategic challenge around supply chain execution as the Vice President of Sales Northern Europe at Infios. In his role, Steven plays a pivotal role in consulting businesses on transforming their supply chain execution, leveraging his extensive experience to drive strategic initiatives and foster growth opportunities. With over two decades of experience in technology and supply chain, Steven has established himself as a strategic leader adept at driving growth for his customers. His innovative approach to enterprise engagement has enabled organisations to navigate complex challenges and achieve sustainable success in today’s dynamic supply chain environment.

Register to watch it here now

The name Infios draws inspiration from the concept of infinity, representing the vast, interconnected global marketplace and the limitless opportunities to help businesses create their future. Infios is built on the belief that supply chains should be agile, intelligent, and constantly evolving to meet the demands of a changing world. By leveraging advanced technologies, data-driven insights, and a deep understanding of customer needs, Infios delivers innovative solutions that drive efficiency, lower costs, and empower businesses to succeed in an increasingly competitive marketplace.

“Supply chains are the backbone of modern business and global progress. And when they work better — simpler, faster, smarter — businesses thrive, people benefit, and communities become stronger. We believe that the future is better when supply chains work better,” said Ed Auriemma, CEO of Infios. “Our goal at Infios is to work alongside our customers to provide solutions that meet today’s challenges while thinking ahead to solve tomorrow’s problems.”

Infios integrates order management, warehousing and fulfillment and transportation management into a comprehensive suite of solutions, equipping businesses with the tools they need to navigate today’s complex supply chain landscape. Infios is dedicated to its customers, evolving with them to provide scalable, adaptable solutions that meet their changing needs. This flexibility enables customers to optimize every aspect of their operations with versatile, scalable, and future-ready capabilities. With a thoughtful approach to innovation, the company integrates data, predictive analytics, and AI-driven insights to help businesses stay ahead, anticipating challenges and opportunities before they arise.

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Transporter Automates Air Cargo Handling

Jan Tromp Transport Group has installed a Modular Rollerbed System with Powered Cargo Rollers (MRS-PCR) from Joloda Hydraroll to ensure the safe and controlled transportation of air cargo containing high-value, sensitive semiconductor equipment.

The Challenge

Jan Tromp Transport Group has been a provider of air cargo transport and storage solutions since 2014, specialising in time-critical and high-tech machinery transport throughout Europe. The Group operates from Eindhoven, providing road feeder services in the Netherlands and to destinations in France, Germany, Belgium and England almost daily. Its planning department works closely with clients to provide a tailoured solution to transport challenges around the clock, 24/7, 365 days a year. For one of the world’s leading semiconductor manufacturers, Jan Tromp Transport Group was tasked with transporting its semiconductor equipment.

The challenge was to find a solution that would allow for efficient loading and unloading of air cargo while maintaining the safety and integrity of the machines during transit. Given the delicate nature and high value of the semiconductor equipment, automated loading was essential.

The Solution

The Modular Rollerbed System with Powered Cargo Rollers from Joloda Hydraroll was selected as it enabled Jan Tromp Transport Group to use standard trailers while ensuring the secure and controlled handling of its air cargo containers. This compatibility allowed Jan Tromp Transport Group to retain all trailer security certificates, approvals, and insulation measures, thereby maintaining their high standards of safety and compliance.

Other features of the Rollerbed System with Powered Cargo Rollers (MRS-PCR) for Jan Tromp Transport Group when operating its road feeder services, include:
• Modularity – The system’s modular design allows it to be easily installed and removed without the need for extensive modifications, enabling businesses to retain build integrity and compliance certifications.
• Slimline Design – The system’s low-profile design (with a height of only 70mm) can be retrofitted into any standard trailer, meaning it can load and transport most varieties of air cargo.
• Pneumatic Operation – The system pneumatically lifts loads onto rollers and enables loading and unloading without the use of forklifts – even oversized cargo such as aerospace engines.

Results

The implementation of the Modular Rollerbed System with Powered Cargo Rollers provided Jan Tromp Transport Group with numerous benefits:
• Increased Efficiency – Semi-automated loading and unloading processes have significantly reduced turnaround times, leading to improved operational efficiency. The system can load a 13.6m trailer in just 90 seconds.
• Enhanced Safety – The powered cargo rollers eliminate reliance on pushing/ pulling which means loading is more controlled, reducing the risk of operators injuring themselves or cargo being damaged.
• Improved Productivity – Faster and more efficient air cargo has enabled the group to increase productivity and meet customer demands more effectively.
• Flexibility and Cost Savings – As the MRS-PCR is modular and can be retrofitted into existing trailers, this provides flexibility and saves money as it removes the need to invest in specialised trailers.

Jan Tromp, Managing Director, stated: “We are extremely pleased with the installation of the new MRS-PCR system. It has enabled us to use standard trailers, without modification, to handle all kinds of air freight with precision and make loading safer for our drivers. This will no doubt have a positive impact on our operations.”

The installation of Joloda Hydraroll’s Modular Rollerbed System with Powered Cargo Rollers is enabling the Jan Tromp Transport Group to safely and efficiently handle even the most delicate air cargo. Due to its innovative, modular design, the system could be retrofitted to the existing trailer fleet, leading to immediate ROI when purchasing new trailers, while unlocking ongoing productivity gains.

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Electric Multidirectional Counterbalance Forklift Awarded

The recently launched Combi-CB70E has earned global recognition for its ergonomic design, performance, and sustainability. Irish-based manufacturer Combilift, a global supplier of multi-directional and customised handling solutions, has been awarded the prestigious Red Dot Award for Product Design 2025 for its Combi-CB70E, high-capacity, electric-powered multidirectional forklift, developed to meet the needs of heavy-duty, long-load handling in more sustainable ways.

The Red Dot Award recognises excellence in design quality and innovation, and is no stranger to Combilift’s vision to shape the commercial vehicles industry. This award completes a hat trick for Combilift who previously won a Red Dot for the Combi-WR and ‘Best of the Best’ for the Combi-CB4. Combilift’s Combi-CB70E impressed the international jury with its new ergonomic design, environmental credentials, and ability to enhance operator comfort and productivity in demanding industrial settings.

Martin McVicar, CEO and Co-founder of Combilift, commented: “We are delighted to receive our third Red Dot Award this year for the Combi-CB70E. Our design and engineering teams have been striving to provide solutions that are not only functional and safe but also reflect excellence in industrial design. Our customers increasingly demand electric alternatives that don’t compromise on performance, and the CB70E is exactly that.”

The multidirectional Combi-CB70E is a 7-tonne capacity electric counterbalance forklift, specifically designed for handling long and bulky loads in confined or challenging spaces. Equipped with Combilift’s patented Independent Traction Control System and large elastic rubber tyres, it provides all-terrain capability while maintaining zero-emission operation. The spacious gas strut suspension cab and floor to ceiling glazing offers enhanced visibility and comfort, while the Auto Swivel Seat- which automatically swivels 15 degrees to the left or right, depending on the direction of travel- ensures optimal ergonomics and comfort for operators, even during extended shifts.

This Red Dot recognition comes in an exceptional 11 months of success for Combilift, which has also received multiple international accolades for its products and leadership, including Product of the Year and Ergonomics Award at the UKMHA Archies Awards, as well as Design Team of the Year and Industry Leader awards from the UK’s Engineering & Manufacturing Awards. Watch the video here.

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Overstretched Supply Chains Need a Caribbean Node

Europe’s overstretched supply chains may need a Caribbean node, argues Laurence Jones, Europe Regional Manager, JAMPRO.

Here’s Why Jamaica is the Strategic Answer. Global logistics is being rewritten. Port congestion, rising warehousing costs, geopolitical risk, and the demand for faster delivery are all placing unprecedented pressure on supply chains across Europe. For decision-makers tasked with keeping goods moving while margins tighten, the hunt is on for smarter, more resilient solutions. And surprisingly to some, Jamaica is fast emerging as a compelling strategic partner.

For decades, Jamaica has been a transshipment point between the Americas. But today, the island is stepping confidently into the role of logistics hub for the modern age. Here’s why logistics leaders should be paying close attention.

Prime Geography Meets Modern Infrastructure

Kingston Harbour is one of the largest natural harbours in the Caribbean and among the largest in the world. Strategically positioned along major global shipping lines, Jamaica lies directly on key east-west and north-south routes. Kingston, its capital, is just 3–5 sailing days from major US ports like Miami, Savannah, and New York. This makes Jamaica an ideal location for companies pursuing just-in-case and nearshoring strategies in a post-COVID, post-Brexit world.

At the heart of this potential is the Kingston Logistics Park (KLP), a port-adjacent, bonded SEZ (Special Economic Zone) located next to the CMA CGM-operated Kingston Freeport Terminal. With over 100,000 square metres of space and direct customs integration via ASYCUDA World, KLP offers a scalable platform for regional consolidation, e-commerce fulfilment, reverse logistics, and light manufacturing.

Exceptional Cost Advantage

Compared to European and US logistics hubs, Jamaica offers highly competitive cost structures. Labour costs are 40–60% lower than US equivalents. Land and warehouse lease rates typically range from US$0.85- US$1.75 per sq.ft. per month, depending on location, infrastructure, and amenities. US$0.25–0.60 per sq. ft./month. Energy and telecoms infrastructure support modern distribution models, with solar integration opportunities for sustainability-conscious brands. In addition, SEZ benefits include a reduced corporate income tax of 12.5 %, which may be lowered to 7.5% with the approval of additional tax credits. Other incentives include duty-free inputs, and VAT/GCT exemptions on capital equipment.

Market Access to 40+ Million Caribbean Consumers

Beyond Jamaica itself, a logistics base in Kingston opens access to more than 40 million consumers across the Caribbean. Jamaica’s connectivity to Latin America and the US East Coast makes it ideal for firms looking to expand regional presence without committing to costly continental operations. Major carriers including CMA CGM, ZIM, Seaboard Marine, Tropical Shipping (represented locally by Kestrel Liner Agencies) and Maersk call at Kingston, ensuring consistent service schedules and reliable outbound reach.

Government Support and a First-Mover Advantage

JAMPRO and the Government of Jamaica are actively seeking logistics partners. We are ready to facilitate site visits, coordinate SEZ approvals, and connect investors with trusted developers. Workforce development programmes are already in place via HEART/NSTA to ensure trained staff are ready for new logistics roles. Importantly, no multinational 3PL has yet established a flagship logistics hub of scale in Jamaica. This presents a unique first-mover advantage for visionary firms willing to lead.

European logistics firms don’t need more of the same. They need adaptable, cost-effective, strategically located infrastructure that can buffer against future shocks. Jamaica is not just another dot on the map — it’s a gateway to the Americas, waiting to be activated.

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Ofcom Proposes Major Reform of Royal Mail

Ofcom has unveiled proposals to reform the UK’s Universal Service Obligation (USO), aiming to bring the postal system in line with changing consumer behaviour and ensure the long-term sustainability of Royal Mail’s operations.

With letter volumes falling dramatically and parcel demand continuing to grow, the regulator is seeking to modernise the services Royal Mail is legally required to provide, while maintaining key features that consumers still value — such as affordability and nationwide coverage.

Letter Decline Spurs Review

Over the last decade, letter volumes in the UK have halved — from around 14 billion in 2011/12 to just 7 billion in 2022/23. In contrast, parcel volumes have risen steadily, driven by e-commerce and changing business models. Ofcom’s review responds to this shift, highlighting that the current six-day-a-week letter delivery model is no longer aligned with consumer needs or usage patterns.

Proposed Changes to the USO

Among the most significant proposals is a revision to delivery frequency. Royal Mail would no longer be required to deliver Second Class letters six days per week. Instead, deliveries would be made every other weekday, while First Class mail would continue with a six-day delivery schedule. Parcel services are unaffected by the proposals.

Ofcom also recommends updating performance standards. The new model would set realistic expectations based on how consumers actually use the mail:

  • First Class delivery: target of 90% delivered next-day (down from 93%)
  • Second Class delivery: target of 95% delivered within three days (down from 98.5%)

New reliability targets:

  • 99.5% of First Class mail delivered within three days
  • 99.5% of Second Class mail delivered within five days

These changes reflect a growing preference for reliability and value over speed, according to Ofcom’s research.

Affordability and Accessibility Remain Key

While usage patterns have changed, many people still depend on the postal service — particularly in rural and remote areas. The regulator is committed to preserving elements such as uniform pricing and national coverage to ensure fair access for all.

Consumers indicated that they continue to value the availability of next-day First Class service and the ability to send items across the country at a consistent price.

What Happens Next?

The public consultation on these proposals closed in April 2025. Ofcom is now reviewing responses from stakeholders, including postal users, businesses, and consumer groups. A final decision on the updated USO is expected later this year, with implementation likely to follow shortly after.

For the logistics sector, these reforms mark a significant step in rebalancing letter and parcel operations, aligning the regulatory framework with today’s market demands and delivery expectations.

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