No-deal threat drives logistics players into a gamble with warehouse leases

Logistics companies face a gamble with long-term leases if they are to cope with the impact of a no-deal Brexit on UK supply chains, despite a supposedly improving warehouse market. Chief executive of the UK Warehousing Association (UKWA) Peter Ward told The Loadstar reports were painting a rosier picture, but this ignores the needs of the logistics community. “Messages are being bandied around that there are greater levels of warehouse space available, with more being spent on speculative development,” he said. “But it’s important to de–couple the growth in empty buildings, with what will be needed to handle the fallout from a no-deal Brexit.” Speculative building may be on the up, he added, but the UK’s short-term plug-and-play warehouse space was insufficient to cope with a no-deal Brexit.