UK LCL Market: Growth Amid Challenges in 2025

By Lee Mullins, Sales and Development Manager of Beckchoice Ltd

LCL as a Lifeline for SMEs

LCL has long enabled SMEs to participate in global trade without needing full container volumes. These businesses move in response to customer demand, and LCL offers the flexibility they need. While specific figures on SME dominance in LCL booking volumes are not publicly published, the trend is clear: smaller businesses are driving a significant share of incremental growth in the UK’s consolidated freight market.

The government’s Modern Industrial Strategy includes funding for logistics and infrastructure improvements. While not solely focused on LCL, the expansion of port capacity and inland freight hubs, particularly around Felixstowe and Southampton, indirectly supports this segment.

Ports, Pressure, and the Infrastructure Push

UK ports continue to manage high volumes, with unitised traffic growing 3% year-on-year in Q1 2025, according to the Department for Transport. Felixstowe remains the UK’s busiest container port. While official dwell times average around 4.9 days at Felixstowe and 4.2 days at Southampton, capacity constraints remain a challenge, especially for high-frequency, low-volume shipments.

Investments like the Felixstowe to Nuneaton rail upgrade are critical to unlocking inland capacity and promoting modal shift. Expanded intermodal access for LCL shipments is expected to improve cost, efficiency, and sustainability over time.

Digital Transformation in Customs and Trade

Although not without issues and delays, the rollout of the UK Single Trade Window in late 2024 is starting to simplify customs processes. As with all new technology, there is a learning curve and period of adjustment. Specific figures for clearance time reductions are unavailable, but early industry feedback suggests that digitisation is streamlining paperwork and cutting delays for multi-origin consignments.

This digitisation is part of a broader shift. Digital trade corridors, combined with blockchain and AI applications in warehouse management, are no longer experimental. They are slowly becoming the new baseline, especially in high-volume distribution hubs.

E-Commerce, Nearshoring, and Global Demand

E-commerce continues to demand fast, flexible logistics solutions. The rise in nearshoring and just-in-time retail restocking keeps LCL relevant. Post-Brexit, trade with the EU has been flat or slightly down overall. However, consolidated shipping remains critical for cross-border SMEs navigating new customs procedures and challenging trading environments.

In global markets, US trade volumes took a notable hit in April 2025, following the imposition of 10% tariffs on general goods and 25% on vehicles and machinery. While the impact on LCL volumes specifically isn't published, the UK recorded a £2 billion drop in exports to the US that month, according to the ONS, with knock-on effects likely for LCL operators servicing transatlantic lanes.

Green Logistics and Regulation

There are growing expectations and increasing pressure for businesses to track and report their carbon emissions. The UK’s net-zero goals are prompting modal shifts and investment in low-emission technologies, including hybrid, electric, hydrogen, and biofuel vehicles, as well as carbon capture technologies for transport and handling equipment.

Digitisation and integration of IT systems for stock planning and handling are also enabling more efficient and sustainable supply chain management.

Labour and Skills: The Persistent Constraint

Labour shortages, especially in trucking, warehousing, and experienced customs brokerage, continue to affect the sector. A large proportion of vacancies, particularly in warehousing, are temporary positions enabling providers to be flexible with their workforce. Often, shipping and logistics jobs are viewed as a short-term employment choice. High employee turnover has a detrimental effect on efficiency, and there is a digital skill development lag.

Upskilling, recruitment partnerships, and automation are all part of the sector’s adaptation strategy. AI-led inventory systems and warehouse robotics are increasingly standard in new facilities.

Navigating Policy and Global Uncertainty

Trade policy volatility remains a pressing issue. The UK’s Modern Industrial Strategy and the work of the Supply Chain Coordination Centre aim to identify risks and prioritise investment, but LCL operators remain exposed to global shocks. The US tariffs in April 2025 have already tested the system, and firms are turning to scenario planning, inland consolidation, and trade diversification as mitigation strategies.

The Road Ahead: Agility Over Scale

In 2025, success in the LCL market is not about moving the most freight, it’s about moving the right freight, fast and flexibly. From e-commerce restocking to cross-border SME trade, LCL is proving its strategic importance. However, execution matters more than vision.

With infrastructure improvements, customs simplification, and digital transformation underway, the UK logistics sector, LCL included, is navigating its post-Brexit, post-pandemic reality with cautious optimism.

Bottom Line

The future of UK logistics is being written in real time. In many cases, it’s the consolidated, multi-supplier container—the LCL shipment—that tells the story best. For those ready to invest in technology, embrace compliance, and build adaptable networks, LCL isn’t simply a fallback option; it can be a strategic advantage.

Freyt Consol Blog Contributor

Lee Mullins

Sales and Development Manager, Beckchoice Ltd, a member of the Freyt Consol Network

Freyt Consol is a global network for LCL consolidators and NVOCCs dedicated to excellence and long-term growth. We create an environment where members thrive by collaborating with trusted partners and accessing essential resources.