Key Points
- Transport companies across the North of England are recording strong growth amid peak trading periods driven by seasonal demand.
- Maritime Transport acquired Lanes Group’s northern England operations, enhancing presence in Yorkshire and Lancashire for faster last-mile deliveries.
- Wincanton expanded into Scotland via purchase of H&H Distribution, strengthening networks for retailers and manufacturers.
- UK parcel delivery sector anticipates handling 1.29 billion parcels during peak seasons, an 11% increase year-on-year, led by Royal Mail, DPD, and Evri.
- Logistics industry faces 40% parcel increase during Christmas, Black Friday, and summer sales, with investments in automated sorting centres processing 30,000 parcels per hour.
- 2025 peak retail season delivered elevated spot rates up nearly 19%, tender rejection rates over 13%, and sustained demand through late December.
- Driver shortages, infrastructure bottlenecks, and rising costs of 20-35% for small businesses challenge growth, prompting consolidation and technology adoption.
- Warehousing sector forecast to reach £38.2bn revenue in 2025–26, but labour supply lags behind capacity expansion.
- Firms like FedEx and DHL prepare with extra aircraft, trucking rotations, and predictive planning for modest volume increases.
Northern transport firms in the North of England and Scotland are experiencing rapid growth during the current peak season, fuelled by heightened seasonal demand from e-commerce and retail surges. Companies report elevated volumes, strategic acquisitions, and operational expansions to meet the demands of Black Friday, Christmas, and early January sales. This boom underscores resilience amid challenges like driver shortages and rising costs.
What Drives Growth in Northern Transport Firms?
Seasonal demand surges place immense pressure on northern logistics networks, yet firms capitalise on this for expansion. As reported by the Business Up North team in their article dated 6 January 2026, transport companies across the North of England continue to record strong growth during peak trading periods, with seasonal demand driving higher volumes.
In the FreightConnect analysis of 2025 UK freight and logistics M&A trends, published in December 2025, consolidation emerges as a key strategy. Maritime Transport acquired Lanes Group’s northern England operations, enhancing its presence across Yorkshire and Lancashire and enabling faster last-mile deliveries for local customers, as stated in the report. Similarly, Wincanton expanded into Scotland by purchasing H&H Distribution, a regional freight and warehousing specialist, thereby strengthening its Scottish network and improving service coverage for retailers and manufacturers in the region.
Pegasus Couriers highlights in their June 2025 article that Britain’s shipping industry faces a 40% increase in parcels during peak seasons such as Christmas (November to December), Black Friday (late November), and summer sales (July to August). Royal Mail, DPD, Hermes (now Evri), and Yodel all see significant volume increases, processing up to 1.29 billion parcels—an 11% rise from the previous year.
Which Acquisitions Boost Northern Operations?
Strategic mergers and acquisitions dominate the northern growth narrative. The FreightConnect report details how Maritime Transport’s acquisition of Lanes Group’s northern England operations allows for broader geographic coverage and operational flexibility. This move fuels growth in underserved areas outside London and the South East, reducing delivery times.
Wincanton’s purchase of H&H Distribution exemplifies regional focus, as noted in the same analysis: it strengthens service capabilities for northern and Scottish clients. Other examples include Raptor Logistics acquiring D&M Logistic Solutions to bolster Suffolk operations with UK-wide reach, though northern impacts ripple through supply chains.
Private equity fuels such deals. Palatine took a majority stake in fulfilmentcrowd, enabling warehousing expansions, while Blackstone acquired 18 last-mile logistics assets. These investments position northern firms to handle volatile demand.
How Do Peak Volumes Challenge Northern Logistics?
Northern firms grapple with capacity strains amid booming volumes. The Supply Chain Report from 2 January 2026 states that the 2025 peak retail season saw spot rates increase by nearly 19% from mid-November, reaching multi-year highs, with tender rejection rates surpassing 13%—indicating tight truck availability.
Pegasus Couriers reports UK small businesses face 20-35% shipping cost increases during peaks, with Royal Mail and DPD adding surcharges of £2.50 to £8 per parcel. The British International Freight Association (BIFA) notes members spend 28% more on operations compared to two years ago, exacerbated by fuel costs and NICs burdens.
Labour shortages persist, as per The Best Connection’s December 2025 insights: the logistics sector saw a 9% rise in job postings due to e-commerce and returns, yet warehousing growth outpaces supply, with IBISWorld forecasting £38.2bn revenue for 2025–26.
What Technologies Aid Northern Transport Growth?
Investments in tech underpin northern resilience. Pegasus Couriers describes automated sorting centres processing 30,000 parcels per hour and machine learning predicting volumes with 95% accuracy, aiding route planning for firms like DPD and Evri.
FedEx invested in streamlining networks for large packages and Sunday deliveries, as per TTNews on 19 November 2025: “We continue to streamline the network to better handle large packages through various types of facilities,” the company stated. DHL schedules extra aircraft and trucking, using predictive planning to scale amid optimistic peak growth.
FreightConnect notes FedEx’s February 2025 acquisition of RouteSmart Technologies for route optimisation and Blue Yonder’s purchase of Pledge Earth Technologies for carbon tracking, enhancing northern efficiency.
Which Challenges Persist Despite Growth?
Despite gains, bottlenecks loom. Estes Express Lines President and COO Webb Estes remarked in TTNews: “Last year and this year had really late Thanksgivings… we love it when customers start deals early,” highlighting volume spread needs.
Global Trade Mag reports spot rates climbed 18.9% to $2.76 per mile by 28 December 2025, with high volatility. Pegasus Couriers warns of supply chain issues, with transit times up a third due to conflicts, and Road Haulage Association confirming driver shortages below pre-2020 levels.
Northern regions like Yorkshire face port delays at Felixstowe, impacting inland distribution.
What Lies Ahead for Northern Firms?
Sustained demand persists, with Supply Chain Report noting no early-December slowdowns in 2025 due to weather and consumer activity. Maersk forecasts 2026 peaks including summer holidays.
Firms hiring 50,000 seasonal workers and expanding depots, like Pegasus Couriers with six UK sites, prepare robustly. Consultancy.uk advises optimised logistics for the Golden Quarter.
Professionals in Logistics and Supply Chain Management can master these dynamics through targeted training, ensuring firms navigate peaks effectively while scaling operations.