European Logistics Outlook: Supply Tightens

As warehouse property supply tightens, power has become the new location factor. Prologis Research expects Europe to remain one of the world’s tightest logistics markets in 2026, with vacancy rates projected to fall below 5 percent and demand driven by e-commerce, power-ready facilities and renewed investment in industrial corridors linked to defence and advanced manufacturing.

Development has slowed as the cycle cooled, but the bigger challenge is structural… It’s simply getting harder to build. Entitlements take longer, power connections are capped, and regulatory complexity continues to grow. That scarcity is what’s driving value.

said Eva Van der Pluijm, Vice President, Research & Strategy, Prologis Europe.

Europe’s Vacancy to Fall Below 5 Percent


Across the region, a limited speculative pipeline, high construction costs and planning restrictions will temper new supply through 2026. Leasing pipelines built up in late 2025 are translating into occupancy this year, further tightening availability. Prologis Research estimates that Europe needs around €150 billion of new logistics space to meet current consumption, yet the ability to deliver that supply continues to shrink.

E-commerce to Lead Leasing Growth


E-commerce companies are expected to account for nearly a quarter of all new leasing globally as online sales approach 20 percent of total retail. In Europe, where e-commerce penetration still averages between 10–15 percent, compared with over 30 percent in the UK, adoption continues to rise, creating room for sustained growth. International retailers and parcel operators are expanding their networks to meet rising expectations for speed, sustainability and regional fulfilment, driving demand for well-located, high-specification space.

Power Availability as a Decisive Factor


Power access is moving rapidly up occupiers’ priority lists. As automation, data-intensive operations and electrified transport expand, facilities with reliable power and grid connectivity are increasingly scarce. Developers are responding with on-site generation, micro-grid solutions and higher-capacity infrastructure to future-proof assets. This shift reflects one of the key trends highlighted in Prologis’ global research on the need for power-ready logistics facilities in 2026.

Defence Investment: Early Signs of Activity


Defence-related logistics demand is beginning to emerge in parts of Europe, though activity remains limited. Some markets, including Germany, France and Poland, are seeing early signs of interest linked to national programmes and secure supply-chain priorities. While still a niche segment, it highlights another potential source of future demand within an evolving occupier mix.

Logistics Outlook: Smarter Space, Closer to Demand


According to Prologis, demand for logistics space in Europe will continue to grow, but how that space is used will matter more than ever. The next phase of growth will be defined by facilities designed for efficiency — closer to demand, built for productivity, and optimised for lower energy use and carbon impact.

“The space customers want most is the hardest to build,” Van der Pluijm added. “Operators that can secure modern, power-ready, efficient space will be best positioned for the next phase of growth.”

Further Acquisition for Storage Equipment Firm

Palletower, the storage and logistics equipment provider, has continued its growth strategy with the asset purchase from long time competitor Rotom Cargopak Ltd of their rental customers and stock.


The acquisition, along with the purchasing of the remaining metal stock from their operations, is Palletower’s sixth within the last 18 months and follows the decision of Rotom Cargopak to exit the metal sector and focus their UK strategy within the timber and plastic pallet sectors. Both areas where they have made significant acquisitions and progress in the last 5 years.


Palletower, based in Sale, Cheshire and with warehouse operations in Finland and the Czech Republic, has grown to become a large provider of storage and logistics equipment. Recent acquisitions have helped take the business from an established global turnover of over £40m towards sales of £50m and more than 75 employees.

The company manufactures and supplies over 100 product lines including roll cages, trolleys, racking, stillages and plastic pallet boxes. With a 60-year heritage in the sector, it exports to more than 35 countries and its customers include Waitrose, Walmart, REWE Group and DHL.


Matthew Palmer, owner and managing director of Palletower, said:

Cargopak have been a long established presence within the UK storage and logistics equipment sector. They have an impressive product range and customer base and we are thrilled to have been able to bring this deal together. We are looking forward to working with and developing our expanded customer base over the coming year. This strategic acquisition alongside our recent acquisitions within the industrial racking and shelving industry continues our rapid diversification and growth. We continue to explore acquisition opportunities across the UK to further enhance the services we can provide to our customers across industrial racking and shelving, warehouse design and fit-out, storage and logistics equipment services.

Beyond the Highway: Heavy Equipment Logistics

Heavy equipment logistics is more than moving machinery from one point to another. It’s imperative for the success of large projects in many industries, including construction, energy, and manufacturing. Transport delays can lead to setbacks that jeopardize project timelines, drive up costs, and disrupt operational continuity, sometimes placing millions of dollars and valuable reputations at risk.  

Failures in coordination, including missing permit deadlines and overlooking route restrictions or communication issues, can expose organizations to penalties, project overruns, and even client loss. Data-driven route planning and integrating multimodal transport minimize the risk of late and out-of-budget deliveries. 

The True Complexity of Heavy Equipment Logistics  

The logistics of transporting heavy equipment demand expertise with vast machinery weights that could exceed hundreds of tons. Large vehicles often have unusual dimensions and specific project constraints.  

From oversized turbines and massive excavators to delicate modular process systems, each move involves meticulous planning, structural assessment, client expectations, and regulatory scrutiny to ensure everyone on the road remains safe.  

Businesses often require streamlined schedules and transparent tracking, along with minimized delivery risks to keep themselves competitive. Attempting to move large or sensitive assets using a generalized freight approach often leads to dangerous loading errors, infrastructure damage, or costly interruptions that derail projects.  

Specialized equipment hauling services often offer custom solutions, including specialized trailers, route engineering, permitting expertise, and end-to-end risk management tailored to specific industries.  

Advanced Route Planning: Mitigating Delays and Liabilities  

You can significantly mitigate delay and liability in heavy equipment logistics with advanced route planning. It blends industry knowledge with data-driven strategies. Obstacle mapping thoroughly analyzes every part of a route for physical constraints like bridge heights, road grades, weight limits, construction zones, and local regulations, increasing the likelihood of on-time and on-budget deliveries.  

Risk modeling, where planners assess the likelihood and impact of disruptions, including severe weather, traffic congestion, and regulatory checkpoints, is the next step. Planners run simulations to forecast costs, time, and safety exposures. 

The use of technology such as dynamic GPS systems, integrated with fleet management software, delivers real-time updates on road conditions and allows for immediate rerouting to avoid congestion or closures.  

Live data feeds allow companies to plan for multistop shipments, anticipate regulatory requirements, and optimize travel time down to the minute.  

Finally, digital workflow platforms allow automating documentation, dispatch, and compliance tracking. 

These intelligent systems improve reliability and can cut project costs, prevent excess fuel consumption, and drastically reduce the risk of compliance penalties and accidents.  

Contingency planning, when supported by innovative traffic coordination tools, ensures that critical cargo arrives safely and on schedule, even when something unexpected happens.  

Regulatory and Permitting Mastery: Ensuring Compliance and Reducing Exposure  

Regulatory and permitting are critical in heavy equipment logistics, as every move must comply with a patchwork of local, state, and federal rules. Companies face requirements for overweight and oversize permits, each tailored to cargo dimensions, weight, and route specifics that range from single-trip to annual and superload permits that might demand engineering studies or law enforcement escorts.  

Different jurisdictions often require unique documentation, insurance, and timing requirements, which increases the importance of obtaining all approvals and permits prior to mobilizing assets. 

Successful logistics operations combine compliance expertise with legal, operational, and field teams, ensuring all stakeholders coordinate on permit applications, route planning, and regulatory updates. They also use practical strategies and checklists to avoid issues that could delay a move. 

The risks of non-compliance are steep, ranging from hefty fines and project shutdowns to increased insurance costs and reputational damage that can harm future business prospects. Integrated permit management speeds deployment and is vital for safeguarding operational continuity and upholding client trust. 

Multimodal Integration: Optimizing for Scale and Cost 

Multimodal integration is essential for heavy equipment logistics, as no single mode of transport can efficiently satisfy all project requirements. By combining road, rail, and marine assets, businesses can reach locations with infrastructure barriers and navigate regulatory or physical bottlenecks.  

This flexibility allows organizations to optimize for speed and cost, using each mode’s unique advantages, which include:  

  • Trucks for flexible pick-up and delivery 
  • Rail for long-distance bulk moves 
  • Barges for oversize equipment 

For example, shipping a massive generator might involve land transport using a specialized flatbed, and then transfer to a barge to bypass congested highways or bridge limits.  

These strategies lower transportation spend and minimize project delays, in addition to lightening the load on road infrastructure and supporting operational performance. 

Heavy equipment logistics drives the success of high-stakes projects, where businesses must carefully coordinate each move to meet demanding schedules, budgets, and compliance. The constant stream of data and communication enables companies to respond rapidly to unexpected hurdles, maintain safety, and proactively manage complex multimodal transfers.  

Improve ASRS Safety with Interlocks

As warehouse automation continues to increase, automated storage and retrieval systems (ASRS or AS/RS) have become essential for optimizing space and reducing labour costs, allowing a more efficient storage and retrieval of items in specific locations. These systems, which include shuttles, cranes, carousels, and vertical lifts, may span across multiple aisles and are widely utilized in manufacturing and distribution facilities.


However, the complexity and scale of ASRS introduce several challenges, particularly around meeting safety standards and preventing system downtime (which can result in reduced overall productivity and financial loss). In addition, their moving parts and automated components pose potential hazards to personnel who may need to access the aisles and therefore appropriate measures to reduce risk must be implemented.

Challenges in Selecting ASRS Safety Solutions


The increase in scale and complexity of ASRS present a range of technical and operational challenges when selecting and integrating the right interlocking solutions. Key considerations include:

  • Conformity with globally recognized standards – Identifying the right solutions to meet safety standards can be difficult across regions (e.g., EN 528 – the European standard about rail dependent storage and retrieval equipment). Fortress machinery safety expertise and configurable solutions help organizations meet safety standards wherever they operate.
  • User-friendly operations – Ensuring operators can work without unnecessary complexities is essential to enhance workflow efficiency. This can be achieved by integrating key-operated switches, pushbuttons, and other functionalities within the same unit.
  • Network integration capability – Many warehouses face challenges integrating safety devices within their existing systems. Whether using PROFINET, EtherNet/IP, or EtherCAT, network-enabled interlocks and control pods can allow for rapid installation, reduced wiring, and simple troubleshooting, minimizing downtime and maximizing productivity.
  • Scalability across ASRS environments – As warehouse operations evolve, safety solutions need to adapt to changing business needs and growth. All-in-one ASRS interlocking solutions are highly versatile and suitable for both small-scale and large-scale operations while maintaining optimal performance.
  • Durability in demanding settings – Industrial settings call for rugged equipment that can withstand long-term use. Fortress devices are engineered for longevity, with robust, heavy-duty designs that ensure performance over extended periods, reducing maintenance costs and enhancing long-term safety.


Comprehensive Interlocks for ASRS Safety


With over 40 years of experience in machinery safety and interlocking, Fortress Safety has become a trusted provider across all industries and applications, including logistics, warehouse automation, and ASRS.

Interlocking devices for aisle access incorporate essential features for optimal protection and compliance, including:

  • Guard locking functionality for enhanced personnel safety
  • Escape release for quick exit in case personnel becomes trapped
  • Integrated pushbuttons to improve user efficiency and streamline operations
  • Network connectivity to enable seamless integration with multiple communication protocols


There are also several optional features that can be configured into each device, such as RFID readers to manage and control access, personnel keys to prevent unexpected start-up, and more. Products are designed with flexibility in mind and can be configured to meet the requirements of each facility.

As automation continues to redefine industries, Fortress remains committed to delivering world-class solutions for ASRS safety that prioritize personnel protection without compromising efficiency. With a dedicated team of experts, international support networks, and configurable options, Fortress facilitates seamless integration into any warehouse environment.

Estonian Logistics Startup Announces Funding

Estonian logistics startup MyDello has raised €3.1 million in new funding. Icelandic VC Frumtak Ventures led the investment round, with participation from existing investor Finnish early stage VC Superhero Capital. Joining the board are Frumtak Ventures general partner Andri Heiðar Kristinsson and (previous investor) Jevgeni Kabanov, President of urban mobility company Bolt, one of Estonia’s best-known scaleups.

The investment will be used to accelerate international expansion, starting with the UK, where customers can use the platform from December. Not content with reforming one of the world’s oldest industries – currently estimated to be worth $6tn globally – MyDello intends to go further, with the aim of fully embedding its AI technology into its systems, to automate most shipment operations by end of 2026.

MyDello is an exclusively B2B company, working directly with clients drawn from sectors such as manufacturing, wholesale, and e-commerce. The company claims to be the first digital freight forwarder to offer instant door-to-door pricing and routing for all freight modes (generated with a single inquiry), from 1 kg all the way up to 10 shipping containers, drawing on agreements with 400+ carriers and partnerships with the likes of DHL, Lufthansa, Maersk, Qatar Airways, and Finnair. This has resonated within the market as since its founding in 2021, the company has onboarded 12,500 businesses from 110 countries to its platform. Following year-on-year growth MyDello is today available across 12 countries in Europe and China, with the company on track to cover every European country by 2027.

MyDello argues that too much of the global freight trade is stuck in the past – with entrepreneurship held back by paper-based systems, negotiations and haggling, and even reliant on faxing critical documents. At the same time, businesses rarely know where their cargo is at any given time. Customers simply enter the origin, destination, dimensions, and weight of cargo and the technology takes care of everything else. All the customer has to then do is choose the most suitable offer from the options presented – and the shipping is arranged. Customers have real-time AI-powered tracking information and countdown to delivery, giving peace of mind that shipments are on track, while it’s free to use for every business customer.

MyDello works extensively on high complexity international long distance freight, such as that in and out of the EU, and has particular focuses on China (the company has an office in Shenzhen) as well as key trading lanes between the Americas and Europe. The company has already facilitated shipments between 120 countries and much of its business is in air, ocean, and rail freight, but the company works across all freight classes.

The decades of logistics experience in the founding team, coupled with proprietary software that has an ever-expanding AI layer, has fundamentally revolutionised a once cumbersome and opaque process. For MyDello users this makes delivering goods simpler, more transparent, and affordable.

Customers such as Rapala Purchasing Manager Kaile Palu are resoundingly positive about the service: “We are extremely satisfied with the freight services provided by MyDello. Their commitment to innovation, timely deliveries, and clear communication has made a huge difference in our supply chain. MyDello’s ERP portal is a game-changer – it accelerates our logistics process, giving us real-time visibility, automated updates, and a full overview over shipments. This makes our operations easier, faster, and more efficient – always on time and hassle-free. We truly value this partnership and look forward to continuing our collaboration.”

MyDello co-founder and CEO Joel Timm told us:

We love logistics – my co-founders and I have decades of experience and know the highs and lows of the industry. When we launched MyDello in 2021 we knew there was a better way for our industry to operate and in just a few years we have facilitated thousands of shipments, built up a deep customer base, and struck partnerships and agreements with hundreds of key carriers and industry peers. However, this is just the start, and we’re overjoyed to welcome Frumtak Ventures, and we thank them and our returning investors for their support.

Frumtak Ventures general partner Andri Heiðar Kristinsson said: “MyDello is an awesome company: experienced founders with deep industry experience, proven track record, and crystal clear vision for what is next. Being from Iceland, an island in the North Atlantic, we at Frumtak know first-hand how important global logistics and freight forwarding is, while we also remain baffled by the outdated legacy technology and manual processes still dominant in this fragmented industry. MyDello is perfectly positioned to move the industry forward to the AI-age through its ambitious mission of fully automating shipment operations. MyDello also marks Frumtak’s first investment in an Estonian company, a remarkable and thriving tech ecosystem that has created so many success stories.”

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