Battle to Control Packaging Costs

Transit packaging material prices have been severely impacted by the conflict in the Middle East. But unlike other areas of business operation, there are clear ways of mitigating the risks and reducing costs, writes Chris More (pictured, below), UK Sales Director at Packsize.

Conflict in the Gulf has had an immediate, severe, and probably long-lasting impact on packaging material costs and it is easy to feel helpless in the face of this turmoil. However, shippers can take back an element of control in one simple move – by using the right size box.

On manual, or even semi-automated, packing lines when packing an assortment of goods into a single box or carton, the temptation is always to reach for a box that is safely (or too often, grossly) larger than that strictly required. But this is inherently wasteful, and under the present circumstances, increasingly expensive.

However, by exploiting automated ‘right-size’ boxing technology businesses can combat waste and expense on three fronts.

  1. Eliminate plastics
    With many of the familiar void fill products used in transit packaging, such as bubblewrap and Polystyrene shapes, made from plastic materials derived from oil and gas, prices for these products are bound to rise significantly. Since the start of the conflict the benchmark Brent crude has moved from $73 per barrel to well north of $100 and may yet go much further. Availability of these products are also likely to be impacted, as an increasing proportion of world supply now comes from the Gulf oil and gas producing countries themselves – both production facilities and of course shipping through the Straits of Hormuz are, to put it mildly, compromised. So why are businesses cramming these increasingly expensive materials – which are also environmentally unfriendly – into the voids of oversized packages? There is an alternative approach: by right-sizing, shippers can often eliminate the need for void fill – plastic or otherwise.
  2. Use less board
    Fluted board of course doesn’t derive from petrochemicals. But the conversion processes, from timber to pulp, and then into board, are again energy intensive and unless the mills are fortunate enough to have easy access to hydro-electricity, energy bills will inevitably rise and with them the factory gate price of card and board.
    As timber has to be hauled out of often inaccessible locations, and as finished board delivered to users often at a considerable distance, pricing will also reflect increases in road diesel and ships’ bunkers.
    Packsize finds that its clients typically save up to 29% of their board costs by right sizing. Combined with the elimination of void fill, their bill for packaging materials can be reduced by 35% or more.
    It has also been noted that there is a general trend in e-commerce in particular, predating the current conflict or even the ‘cost of living’ crisis, for consumers to place a higher number of smaller orders. That means that packaging – including wasted packaging – tends to form a greater proportion of each consignment.
    In addition, if anyone needed further incentives to reduce packaging material use, the introduction of Extended Producer Responsibility levies on packaging materials in the UK has added another layer of cost to transit packaging materials. Likewise, those operating in the EU or selling to that market will start to feel the impact of the EU’s Packaging & Packaging Waste Regulations when they are applied in August.
  3. Save on transport
    That leads to our third front in the cost control battle. Transport fuel costs are often the very first area to react to this sort of crisis. By right sizing consignments, it is possible to load many more packages onto a single vehicle – in most cases it is volume, not weight, that is the ruling factor. With higher packing density there is greater potential to reduce the number of trucking journeys out of the distribution centre and ‘last mile’ couriers, using smaller vehicles, may be able to carry a full shift’s worth of drops rather than having to return to the depot for reloading.
    What’s more, savings in ‘volumetric weight’, the basis for charging by airlines and many other carriers, can be significant. These are economic and environmental benefits that are important at any time, but especially now.

Packsize’s automated ‘right size’ packaging solutions offer many other benefits, including high throughput, significant labour reductions and reduced scope for error and damage. These attributes ensure that payback is often measured in months rather than years, and in the current cost environment, the ‘right size’ proposition is ever more attractive.

PODCAST – “Good Enough” to Future-Ready: Designing Delivery Networks

Are your delivery operations just “good enough,” or are they truly optimized for the future? This question is vital in today’s rapidly evolving logistics landscape, where customer expectations, technology, and sustainability goals are constantly shifting.

In this episode of Logistics Business Conversations, we explore how logistics companies can go beyond traditional methods and transform their delivery networks to stay competitive, efficient, and customer-centric. Drawing insights from industry expert, Gary Rosier-Taylor of Descartes, we delve into practical strategies for rethink delivery networks, leverage technology effectively, and prepare for the future.

Whether you’re managing a small fleet or a sprawling logistics operation, understanding these concepts can help you make smarter decisions today that secure long-term success.

Key Highlights:

  • Rethink Traditional Methods: Avoid the pitfalls of piecemeal growth and explore innovative solutions for a streamlined network.
  • Leverage Technology: Learn how AI and machine learning can revolutionize route planning and execution.
  • Embrace Sustainability: Understand the role of electric and alternative fuels in creating a greener logistics landscape.

Gary shares practical tips and real-world examples that can help you transform your logistics operations. Whether you’re a small operator or a large fleet manager, these insights are crucial for staying competitive in today’s market.

Listen now to gain valuable knowledge and take your delivery network to the next level. Embed the player below to tune in directly!

Ocado Renews Long-Term Logistics Contract

Third-party logistics provider CEVA Logistics has renewed its contract with the world’s largest dedicated online supermarket retailer, Ocado Retail. This reinforces their successful relationship and supports the online retailer’s continued growth in the UK.

The renewed agreement will see CEVA continue to operate as a national consolidation centre for Ocado Retail. CEVA will manage the bulk storage of ambient products and distribute approximately to all seven of Ocado Retail’s Customer Fulfilment Centres (CFCs), which dispatch end-customer orders.

Ocado Retail’s volumes through CEVA have grown significantly year-on-year. To accommodate this increase, CEVA has reconfigured its warehouse design at its Kettering facility to process changes in pallet configuration and changes in SKU profile, significantly increasing storage capacity while maintaining impeccable service continuity.

Operational transformation drives efficiency and scalability

As part of the renewal process, CEVA successfully delivered a major operational optimisation programme, including a redesigned warehouse management system (WMS), new pick-face implementation, enhanced replenishment processes and updated put away logic. These improvements have increased outbound efficiency while maintaining full service levels throughout the transition.

CEVA’s Kettering facility now provides Ocado Retail with greater stock cover, stabilising and increasing product availability for end customers and enabling the business to manage peak trading periods year-round.

CEVA’s role as a consolidation centre allows Ocado Retail to optimise its CFC operations, ensuring consistent product flow, improved network efficiency and the scalability required to support long-term growth.

Tim Walker, Supply Chain Director, Ocado Retail, said: “We trust CEVA Logistics to support our growth, consistently adapting to our evolving operational requirements. The team’s ability to implement major system and layout changes while maintaining service has supported in improving efficiency and helped ensure product availability.”

Mike Weaver, managing director, Contract Logistics, CEVA Logistics, said: “This contract renewal reflects the tangible value delivered through our responsive logistics solutions. By combining operational excellence, continuous improvement and scalable infrastructure, we enable Ocado Retail to meet rising consumer demand. We look forward to further developing this successful partnership.”

New Circular Pallet for Sustainable Logistics

As European businesses, including FMCG companies face mounting pressure to meet tighter sustainability regulations while maintaining efficient, cost-effective operations, Tosca, in partnership with Cabka, has introduced a new solution designed for the challenge. Launched this week, the Euro-sized Tosca Circular Pallet (CP 1208) is the next-generation pallet designed specifically for modern, automated and regulation-compliant supply chains.

“With increasing automation, tighter regulations, and rising sustainability expectations across FMCG and retailers’ supply chains, the demands placed on pallets are evolving.’’ says Laurent Le Mercier, EMEA President at Tosca. “Our new circular pallet gives producers, growers, and retailers a standardised, automation-ready, PPWR-compliant alternative that improves efficiency, enhances worker safety, and supports a truly circular supply chain without disrupting existing operations.”

Designed for supply chain efficiency

Engineered to integrate seamlessly into existing operations, the Tosca CP 1208 pallet delivers the consistency and reliability that automated, large-scale environments demand. Its 1200 x 800 mm Euro-standard dimensions ensure full compatibility and integration with Euro-size pallet handling equipment, eliminating the need for costly retrofits or process changes. Rounded skid edges also help minimize damage during forklift handling, reducing impact points compared with traditional square skid designs.
The Tosca CP 1208 provides a stable, standardized platform that allows companies to modernise their supply chains efficiently, without disruption or major infrastructure investment.

“This pallet demonstrates what circular logistics should look like in practice,’’ says Alex Masharov, CEO of Cabka. “By transforming recycled plastic into high-performance transport assets, we enable supply chains that are both more efficient and more sustainable. Together with Tosca, we are showing how circular materials can become the new standard for FMCG, retail and wider logistics.’’

Designed to work seamlessly with Tosca’s reusable plastic crates, integrated deck grooves securely lock crates into place without strapping, enabling stable, safer double-stacked transport and efficient load handling. RFID integration further enhances traceability, asset management, and full supply chain visibility.

Durable, hygienic reusable plastic alternative to wooden pallets

The Tosca CP 1208 is non-porous, easy to clean and splinter-free, making it ideally suited to FMCG, growers’ and retailers’ environments where hygiene, product protection and quality are critical. Its robust plastic construction is made from a unique blend of recycled plastic and includes integrated drainage holes to prevent water build-up and reduce moisture retention. Overall, this helps resist contamination and damage while maintaining consistent performance in automated storage and retrieval systems. Additionally, leveraging recycled content reduces dependence on volatile input markets, supporting more stable operational costs throughout the year.

Supporting safer handling across the supply chain

Crucially, its ergonomic design includes smoothly integrated, well-positioned top-deck handles, enhanced stability and anti-slip features to improve handling safety across the supply chain, from warehouses and packing stations to retail distribution centres. The pallet is also more than 4 kg lighter than traditional wooden pallets, making it easier to lift and move during daily operations.

Beyond operational efficiency, this supports the social pillar of ESG by helping reduce physical strain on employees and lowering the risk of injuries associated with manual handling. By combining lighter plastic with a stable, ergonomic design, and top-deck handles, the pallet contributes to safer and more comfortable working environments across modern high performing logistics operations.

“In high-throughput environments, efficiency and worker safety go hand in hand,” says Le Mercier. “By improving stability, grip and ease of handling, the Tosca CP 1208 helps reduce manual strain and the risk of musculoskeletal injuries, creating safer working conditions while supporting operational performance.”

Built for PPWR compliance and circular performance

With the EU’s Packaging and Packaging Waste Regulation (PPWR) reshaping logistics and packaging strategies, supply chains now require reusable, recyclable and traceable solutions by design. The Tosca CP 1208 is engineered to support supply chains in achieving PPWR and EPR compliance, offering a future-proof alternative to wooden pallets, which require ISPM-15 heat treatment or fumigation and are less compatible with circular reuse models.

Made from 100% recycled plastic and designed to be repaired, reused and ultimately recycled at end of life, the circular pallet embodies Tosca’s pooling-based circular economy approach. Its durability and modular repairability lower total cost of ownership while eliminating waste associated with single-use short-lived assets.

“At Tosca, we don’t simply supply a pallet,” concludes Le Mercier. “We partner with customers to manage assets and deliver supply chain performance, meet regulatory requirements, and turn circularity into a lasting competitive advantage.”

The Tosca CP 1208 is the next step in the company’s commitment to helping food and beverage supply chains become safer, more sustainable and more efficient. By combining a circular design with Tosca’s expertise in pooling and asset management, it demonstrates how companies can achieve regulatory compliance and operational excellence while advancing a long-term, sustainable supply chain strategy.

Supply Chain Execution Standardised Nationwide

Infios has announced that POCO, Germany’s largest furniture and home improvement discounter, has successfully gone live with Infios Warehouse Management (WM) at its Trebbin logistics centre. The deployment marks the first milestone in a multi-site program to standardise and modernise supply chain execution across POCO’s nationwide logistics network.

Founded in 1989, POCO specialises in affordable home furnishings, kitchens, electrical goods and DIY products. The company operates 127 stores alongside a rapidly growing e-commerce business. Its logistics network includes a central goods-receiving warehouse, several regional distribution centres, and a highly automated e-commerce fulfilment centre. Growing operational complexity had outgrown the capabilities of its legacy ERP-based warehouse and logistics modules.

Furniture logistics presents distinct challenges, including bulky and heavy goods, variable packaging formats, and, in particular, multi-package items that must be stored, picked and shipped as coherent units while maintaining full transparency at the component level. These requirements demand a high level of execution intelligence, orchestration and real-time visibility that traditional ERP-based modules are not designed to deliver.

By implementing Infios WM, POCO is decoupling warehouse execution from ERP and establishing a modular, best-of-breed architecture purpose-built for intelligent supply chain execution. The solution enables standardised core processes across sites while flexibly adapting workflows, automation interfaces, and labour processes – including those unique to large-item and multi-package handling.

Seven-site program to harmonise logistics processes

The Trebbin go-live at the end of 2025 serves as the blueprint for further rollout. A second site will follow in 2026, with the remaining locations implemented using reusable templates and industry-specific configurations to accelerate time to value.

“Infios Warehouse Management delivers the execution intelligence needed to run complex, multi-channel supply chains at scale,” says Dirk Teschner, Senior Vice President and Managing Director at Infios. “For POCO, we have configured the solution to reflect the operational DNA of the furniture industry – particularly the precise co-ordination required for multi-package product handling.”

As part of Infios’s Intelligent supply chain execution platform, Infios WM can be extended with complementary modules such as slotting and yard management, positioning POCO to further optimise inbound, outbound and inventory management processes as its business continues to grow.

How to Fix Fuel Supply Planning

With global fuel supply networks fragile and constantly shifting, you need modern logistics planning. That means continuous replanning, realistic constraints, and thorough scenario evaluation.

This article, by Dr. Debdeep Banerjee – Senior Presales Lead at DELMIA, Dassault Systèmes, explores the evolving nature of these networks and provides actionable steps to help you transform a chaotic process into a production-ready Minimum Viable Product (MVP) in just four weeks.

Planning Fuel Logistics During Endless Disruptions

Fuel supply networks operate in a vastly more exposed environment than they did just a few years ago. Recent disruptions across critical maritime energy corridors demonstrate exactly how quickly routing, inventory positions, freight economics and supply continuity break down when a single point of instability ripples across the wider network.

Consider that roughly one-fifth of global crude, refined products and Liquefied Natural Gas (LNG) trade normally passes through one such critical corridor. Recent disruptions there have sharply raised oil price forecasts, freight costs and insurance premiums. While this is clearly a geopolitical story, it’s equally a logistics planning problem.

Fuel operators now face an almost unlimited range of interacting variables. Vessel delays, demand swings, inventory constraints, charter cost inflation, labour rules and weather bottlenecks don’t arrive one at a time. They arrive together. You can’t build resilience by creating a single efficient plan and hoping conditions hold. Resilience comes from testing many scenarios, understanding trade-offs quickly and reworking your plan while operations are still moving.

A Highly Volatile Operating Model

The traditional planning model assumed a manageable amount of uncertainty. Transport plans were created in batches, dispatch windows remained relatively stable and dispatchers handled exceptions manually. That model is now breaking under immense strain.

Recent events in key energy shipping lanes have forced insurers, charterers and traders to reprice risk rapidly. Hull war-risk premiums recently rose from about 0.25% to around 3%, translating into millions of dollars in additional costs per vessel. Freight rates for LNG tankers also jumped sharply as supply and routing patterns fractured.

For planners, the core issue goes beyond cost inflation. The real danger is how disruption propagates. A delay at sea shifts berth timing. That delay affects terminal throughput, which changes inventory availability. Planners must then make entirely different routing decisions inland, often under tighter service windows and with fewer usable resources. A localized disruption becomes a massive network problem in a matter of hours.

The Multiplier Effect of Possible Disruptions

Planners spend most of their time maintaining data rather than making decisions. When a disruption hits, the response is manual and slow. Scenarios are not evaluated, they are guessed. And because the plan lives in a file rather than a system, every handoff between teams introduces another opportunity for something to go wrong.

Take fuel distribution. It always involves complexity. However, the current challenge lies in the sheer volume of variable combinations you must consider before making a decision. You’re rarely dealing with a single isolated event.

A logistics planner might need to account for all the following factors simultaneously:
• Reduced flow through a major transit corridor
• Sudden jumps in freight or insurance costs
• Inventory dropping toward a minimum threshold at one depot while another holds excess
• Changes in customer priority or allocation rules
• Shortages in compatible trailers or certified drivers
• Strict labour and rest-hour compliance constraints
• Low-emission or access restrictions in final-mile delivery zones
• Weather or port congestion altering arrival times
• Geopolitical turmoil changing route viability overnight

I explore these disruption patterns and their operational impact in more detail in our latest e-Book on fuel logistics resilience. No single static model can capture all of this in advance. Success depends on your ability to generate, compare and refine many possible scenarios rapidly. Organizations that respond quickly to disruptions are not faster because they have better reflexes. They are faster because they have already modelled the disruption before it happened. When the event occurs, they are selecting from a set of pre-evaluated options, not starting an analysis from scratch.

Resilience Begins with Constraint Realism

In fuel logistics, planning quality directly depends on execution realism. A plan that ignores contamination rules, compartment constraints, driver-hour regulations or equipment compatibility isn’t resilient. It’s simply an incomplete plan.

Why Real-World Constraints Matter

Plans must account for real-world constraints like driver certifications, cross-docking, multi-stop routing and regulatory compliance. This matters even more during disrupted conditions. When product flows tighten, you have far less room to absorb planning errors.

If a tanker delay forces a different delivery sequence inland, that new sequence still must respect labour rules, asset compatibility, customer windows and available stock. Your system can’t treat these factors as secondary checks added after the fact. They must function as part of the core optimization engine. Resilience shows up in your operation as a plan that remains fully executable after the disruption has already started.

Buying Decision Speed with Scenario Planning

The most useful question a planner can ask is rarely, “What’s the best plan?” Instead, the better question is, “What happens if our primary assumption no longer holds?”

What if a major corridor stays constrained for another week? What if charter costs rise further? What if a terminal misses its unloading slot? What if you must source product from a completely different origin?
Organizations that model these possibilities in advance hold a distinct advantage when market conditions change. They don’t start from zero. They simply move from one pre-tested decision path to another. DELMIA emphasizes this heavily in our logistics and workforce planning solutions. By prioritizing what-if scenarios, tactical route creation and resource balancing, you shorten the critical time between a supply chain signal and your operational response.

From Chaos to Operational in One Month

One of the most common objections fuel organizations raise when evaluating planning platforms is the implementation timeline. Enterprise software projects with 12 to 18 month go-live windows are not attractive when the planning problem is urgent today.

The DELMIA Fuel Supply Optimizer (FSO) delivery model is structured around a different premise. The goal is not perfection at go-live. The goal is capability in four weeks.

Week 1: Demo Challenge:
The first week is not a sales demonstration. It is a working session. The client’s actual business rules, network structure and a representative sample of planning data are loaded into the platform. By the end of the week, the team has seen the system handle their specific constraints, not a generic example. Key pain points are identified and concrete evidence of how the system addresses them is documented. The 1-week challenge exists because the best way to evaluate a planning tool is to watch it plan a real network.

Weeks 2 to 4: MVP Build and Deploy:
Weeks 2 through 4 focus on moving from validated concept to production deployment. This covers ingestion of existing planning data from Excel-based workflows into a structured, integrated planning and scheduling environment, configuration of the full constraint set, user training, and parallel running against the current process. By the end of week 4, a production-ready system is in place and planners are using it to generate real plans. This is not a pilot. It is not a sandbox. It is a live operational capability. Further optimization, additional scenario models and expanded capability can be layered on after go-live, but the core planning function is running from day one.

Week 4 (end of week): Delivery:
Full fuel inventory visibility across the network. Vessel planning and scheduling connected to inventory. Distribution planning with live constraint validation. Scenario planning capability the team can use without specialist support. Compliance monitoring for minimum stock obligations.

Turning Visibility into Action

Many fuel organizations now possess more supply chain data than ever before. But data alone doesn’t create resilience. True resilience depends on visibility tied directly to planning logic. When new information enters your network, your plan must adapt instantly. DELMIA’s logistics execution solutions emphasize continuous, real-time monitoring, track-and-trace capabilities and immediate feedback loops from the field. Disruption rarely announces itself as a single catastrophic event. It reveals itself slowly through updated ETAs, missed connections, delayed loading and shifting inventory positions.
A connected planning environment allows these weak signals to trigger automatic recalculations instead of manual firefighting. This empowers your organization to move away from reactive recovery and step into controlled, strategic adjustment.

Take Control of Your Fuel Supply Network

The ongoing pressure on global energy supply routes serves as a stark reminder: you must plan fuel logistics for instability, not around it. Disruptions will continue to emerge from operational, commercial, regulatory and geopolitical sources. All of them will threaten the shape of your plan.

This is where advanced planning platforms, such as DELMIA Quintiq, prove structurally essential. Logistics planning centres on multiple demand scenarios, intelligent route creation by zone, resource balancing and dynamic what-if evaluations across complex transport networks. You can use this unified planning framework to test the impact of delayed arrivals, reduced capacity, changed sourcing points, emergency reallocations or the temporary loss of a major transport corridor.

Resilience means asking better questions earlier, testing more possibilities before committing resources and adjusting your plan while you still have time to protect your service, margins and supply continuity. This capability is no longer an optional upgrade. It’s the basic requirement for operating a successful fuel network in a volatile environment.

Freight Platform Sets Weekly Loads Record

European freight exchange Trans.eu has announced that it has reached a milestone in platform activity. In the final week of March 2026, the platform recorded a staggering 3.73 million load offers. This figure represents a 12% increase over the previous week and surpasses the long-standing peak from June 2025 by nearly 14%.

The surge comes during a period of significant geopolitical instability, particularly surrounding the Strait of Hormuz, which has driven increased volatility in global supply chains. Trans.eu’s data reflects this shift, with the Middle East market showing a notable 41.56% growth in previous weeks and continued high activity into late March. As maritime and trans-continental routes face disruption, the demand for flexible, secure road transport capacity within Europe has intensified.

While operational costs change weekly, sometimes daily, many contract rates remain behind. As margins tighten, more carriers are moving capacity to the spot market, where prices move closer to real-time conditions. This transition is driving a surge in available freight and increasing reliance on digital platforms like Trans.eu, that provide fast, secure matching.

The platform’s growth is led by key European hubs, with Poland recording a 37.4% increase over its four-week average (generating over 3.3 million loads), followed by the DACH region (+36.9%) and the Baltics (+25.4%).

At this moment of heightened volatility, with 35% of carriers operating under the risk of non-payment and operational costs peaking, Ewa Węgorkiewicz, Chief Commercial Officer at Trans.eu Group, emphasized the company’s responsibility to help close the industry’s trust gap.

Trust is the bridge between the cost of uncertainty and safe, mutually beneficial transactions for all parties,” Węgorkiewicz said. “We strive to become the place where transactions happen with confidence, making working outside the platform feel unnecessarily risky, by providing tools and guarantees, such as SafePay and our vetted network, that the outside world lacks.

The evolution is similar if we compare volumes seen for the entire month of March 2026 compared to previous month. As shown on the Trans.eu Freight Radar, an interactive map, both load volumes and spot rates have increased across nearly all of the 35 monitored countries. For example, volumes for Poland – Poland went up by nearly 85%, while volumes for the route of Poland to Germany increased by 10.5% March/February 2026. Germany domestic went up by 36%, Germany to Poland by 31.5% and Germany to France by 15.4%

In response to this increased pressure on supply chains, Trans.eu is accelerating its transition from a traditional freight exchange to an European Freight Platform, strengthening the heart of CEE road transport while seamlessly connecting freight capacity between Western and Eastern Europe.

Positioned as a safe haven for carriers, forwarders and shippers, the platform aims to secure freight execution without the risks of off-platform deals. It offers access to a rigorously verified community of over 40,000 European carriers, alongside SafePay, a payment guarantee ensuring carriers are paid for every load and helping forwarders gain instant credibility.

The Year of the Pallet Shuttle

Beth Marshall, Movu Sales Director for the UK looks at the take-aways from the big intralogistics shows in Europe and the USA.

Springtime sees the logistics Industry gathering at the hubs for intralogisics innovation and networking: LogiMAT in Stuttgart, Germany during March, closely followed in April by the US show MODEX in Atlanta. Both of these major events attracted enthusiastic crowds seeking solutions to their intralogistics challenges, generating a noticeably positive atmosphere. With Movu having a busy stand at both events, it presented the ideal opportunity to learn more about the technologies and innovations shaping the market.

Despite the current geopolitical turbulence, there was a real buzz about the shows – reflecting the optimism in the market. It was clear that investments are being made to gain efficient warehousing for the future, particularly for smaller projects, and retrofitting was another popular topic of conversation with companies seeking to make the most of their existing space rather than find a new building. Growing businesses not yet ready to make very large investments at the outset, want to increase the number of locations in their current space, negating the cost, complication and risk of a warehouse move.

Strong demand for pallet shuttles

While just prior to the Covid pandemic there was a proliferation of Autonomous Mobile Robots (AMRs) at these exhibitions, 2026 was clearly the ‘year of the pallet shuttle’. Everywhere you looked, suppliers from all corners of the globe, were showing examples of the technology.

The strong increase in demand for pallet shuttles over the last several years is due first and foremost to the solution having no single point of failure, as is the case with stacker crane based automated storage and retrieval systems. A pallet shuttle solution can be scaled up whenever needed and is more cost efficient in terms of energy – obviously a vital contribution to increasingly important warehouse sustainability targets, in addition to helping to dampen the impact of unpredictable energy costs.

While it was interesting to see the influx of pallet shuttles to the market, it is easy to understand how perplexing this can be for customers. Our advice is: there is much more to a pallet shuttle supplier than the shuttle itself – focus on the whole solution.

The growing interest in pallet shuttle technology is not purely restricted to saving space compared to conventional pallet racking or stacker crane based systems in main storage areas of a warehouse. People are increasingly seeking to leverage the cube efficiency and operational benefits of the technology in wider applications, such as forward shipping buffers, where a rack can make use of marshalling area space to buffer goods for onward delivery. In a manufacturing facility, a buffer can hold goods pulled out of storage until they’re needed again on a manufacturing line.

Single source supply

Owned by stow Group, Movu’s unique position as a supplier of racking, shuttles and software enables the business to offer as a complete, integrated solution as a single source supplier, contributing to 200 projects sold globally since stow commenced its robotics business in 2021. These are solutions designed to ensure that no warehouse is left behind when it comes to adopting automation – from a small family-run business to a large corporate. In the UK, both ends of the scale are experiencing rapid growth: small companies starting out on automation and larger companies trying to consolidate their network into one large warehouse. Pallet shuttle technology is making a big contribution to a tangible shift to automation in the UK

In 2026 the UK is cited as one of the most important automated warehousing markets. This is quite a step change for a market that traditionally relied on manual picking and forklift truck operations. While recruitment for warehouse work is not the problem it once was, finding skilled people remains an issue. For example, a lack of people training to be a forklift truck driver is impacting costs so operations are looking to eliminate forklifts, relying on either electric pallet trucks, which do not necessarily require a skilled operator, or turning to automation.

Increase density to mitigate risk

Among the other drivers shifting warehouse operators towards automation is the need for greater storage density – allowing businesses to store more goods and mitigate supply chain risk in a turbulent world. Operations wanting to go higher to achieve density are struggling to get planning permission on high buildings. While warehouse availability generally isn’t as scarce as it used to be, there is a lack of smaller urban warehouses. This, in addition to the costs of running a network of smaller warehouses has led to the ‘close to consumer’ fulfilment trend reducing in significance.

The frozen market is doing very well boosted by a huge demand for frozen food, as well as pharma and ecommerce operations. Shuttle technology is perfect for these sectors. Third party Logistics (3pl) operators – particularly the new, up and coming brands – are seeing the modular scaleability, flexibility and reliability of automation provided by shuttle systems and reappraising their ROI models.

With its heritage as part of the stow Group, Movu stands out because it makes the racking in which shuttles operate in addition to manufacturing the atlas 4-way pallet shuttles themselves. What’s more, it has its own software and its own lift design.

As Movu is accountable for every part of the solution, customers can trust its plug and play pallet shuttle technology and know that it will be supported in the years to come. Offering scaleability for business growth, the modular nature of Movu’s 4-way shuttle system avoids the need for a large initial investment, with users being able to add more shuttles and racking as they continue to grow. And to handle peaks, Movu has a short-term rental fleet.

This technology isn’t an innovation for Movu, it is simply what the company does, as was demonstrated at LogiMAT and MODEX.

Prologis Signs Cainiao

Prologis UK has secured a 10-year lease with global ecommerce logistics provider Cainiao, part of the Alibaba Group, marking a significant expansion of its UK operations.

Prologis Apex Park DC4’s recent refurbishment was delivered with a strong focus on sustainability, featuring advanced LED lighting, a solar PV array and EV charging infrastructure, resulting in an EPC A rating and supporting lower carbon operations.

The 150,911 sq ft DC4 enables rapid operational ramp-up with the installation, through Prologis Essentials, of wide aisle racking providing 20,028 pallet capacity. This allows Cainiao to move in quickly and handle high-volume operations from day one.

Sun Beibei, Vice President of Global Supply Chain at Cainiao, said:

“By signing a 10-year lease at Prologis Apex Park, we are making a clear, long-term commitment to the UK market. This significant investment reflects our confidence in continued growth and reinforces the stability and reliability of the logistics services we deliver to customers across the region.”

Prologis Apex Park offers the location, specification and flexibility we need to support our continued growth in the UK. The ability to move quickly through leasing and into a facility that is already optimised for high-volume operations was a key factor in our decision. We look forward to working with Prologis as we expand our network.”

Tom Price, Leasing Director at Prologis UK, said: “Cainiao’s decision to locate at Prologis Apex Park reflects the strength of the Midlands as a core logistics location, as well as continued investment from Chinese ecommerce businesses into the UK. As an existing global customer, we were able to move quickly on commercial terms, enabling this transaction to complete”

The letting brings Prologis Apex Park to full occupancy, following the recent leasing of DC3 to DHL. The park is home to major global customers including CEVA Logistics, XPO Logistics, Cummins and Hankook, reinforcing its position as one of the Midland’s premier logistics locations with strong connectivity and access to an established labour pool within the Midlands’ ‘golden triangle’.

A final opportunity remains at the park, with DC11 offering a 91,000 sq ft build-to-suit unit with full planning consent.

Port of Tyne Autonomous Logistics

The North East Automotive Alliance (NEAA), alongside the Port of Tyne, Oxa, and a consortium of leading industry and academic partners, has successfully delivered the P-CAL (Port Connected and Automated Logistics) project, marking a major milestone in the region’s journey to become a leader in Connected and Automated Mobility (CAM).

Delivered through the UK Government CAM Pathfinder programme, P-CAL was designed to push the boundaries of autonomous logistics by deploying and validating a fully autonomous terminal tractor within a live port environment. Building on the North East’s earlier 5G CAL and V CAL initiatives, the project moved autonomous technology from proof of concept trials into a complex, safety critical, real world operational setting.

Paul Butler, CEO of the NEAA, said:

P-CAL represents a defining moment in the North East’s journey from pilot projects to real world autonomous operations. This project has demonstrated not only technical capability, but the strength of collaboration across industry, academia and government. The learning gained here will shape future CAM deployment and reinforces the region’s position as a national leader in connected and automated mobility.

Over the course of the project, the consortium successfully designed, integrated and tested an autonomous container transport solution capable of operating on a busy quayside. The scope of work included the deployment of a fully autonomous terminal tractor supported by a secure, resilient mesh communication network, the capability to integrate with terminal operating systems, real time co-ordination with live crane movements, and the implementation of a robust cybersecurity framework to enable safe, remote and automated operations.

Critically, the system was developed and tested within a newly defined and highly complex ‘Operational Design Domain’, reflecting the realities of a working port environment where traffic density, variable conditions and human interaction present unique challenges.

Graeme Hardie, Operations Director at the Port of Tyne, said: “Delivering autonomous logistics in a live port environment has been a major step forward for the sector. P-CAL has shown what’s possible when innovation is applied to real operational challenges, improving safety, efficiency and sustainability. The Port of Tyne is proud to have played a leading role in a project that will influence how ports across the UK and beyond approach automation.”

The project was delivered by a strong regional and national partnership led by the NEAA, bringing together the Port of Tyne, Oxa, Nissan, Newcastle University, Angoka, Logisteed UK Limited (formerly Vantec Europe) and Womble Bond Dickinson. This collaboration combined deep expertise across autonomous systems, logistics, cybersecurity, academia, legal compliance and industrial operations, demonstrating the strength and maturity of the North East’s CAM ecosystem.

Paul Newman, Founder and CEO at Oxa, said: “The success of P-CAL proves how autonomy will enable the future of resilient logistics operations. Through the project, we’ve demonstrated that existing work vehicles can be turned into a digital workforce – successfully completing autonomous container movements in a dynamic quayside environment, while providing worksite intelligence necessary for real-time industrial optimisation.

P-CAL provides a blueprint for how ports and industrial hubs worldwide can deploy autonomous technology to drive productivity, efficiency and safety.

Cyber resilience was a fundamental requirement of the project, ensuring that connected systems could operate safely and securely within critical infrastructure.

Shadi AR, CTO at ANGOKA, said: “Cyber resilience has been fundamental to the success of P CAL. The project has demonstrated how secure, purpose built digital infrastructure can enable safe and trusted autonomous operations in critical industrial environments. This work sets an important example for the future of connected logistics and industrial automation.”

P-CAL demonstrated that autonomous movements can be carried out safely and reliably in a controlled area of the port and strengthens the case for a much larger deployment. The next phase must examine how the system performs across broader port operations, including the added pressures of multiple vehicles working alongside people, equipment and live commercial activity.

The project has generated valuable technical, operational and regulatory insight that will inform future deployment of CAM solutions across ports, logistics hubs and industrial sites nationwide. It also highlights how autonomy can be put to work for people. By augmenting the capability of the existing workforce, autonomous systems can take on repetitive or more hazardous tasks, allowing skilled workers to focus on higher-value roles. This is particularly vital for the North East, ensuring the region remains at the forefront of industrial evolution while creating a more resilient and tech-enabled labour market.

Mark Cracknell, Programme Director at Zenzic, said:

P-CAL is a strong example of how government and industry can work together to accelerate the commercial readiness of CAM technologies. Projects like this are vital in turning innovation into deployment, creating high value jobs and ensuring the UK remains globally competitive in connected and automated mobility.

As the project closes, the outcomes and learning from P-CAL will continue to shape future CAM initiatives, investment opportunities and policy development, both regionally and nationally. By progressing from controlled trials to live operational deployment, the North East aims to have reinforced its position at the forefront of the UK’s CAM landscape.

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