A toxic combination of rising business costs, public spending cuts, tough trading conditions, restrictive regulations, severe weather, national security issues and natural disasters meant that 2010 was a particularly tough 12 months for UK logistics.

The Logistics Report 2011, published by the Freight Transport Association (FTA) in association with PricewaterhouseCoopers (PwC), charts the ebb and flow of the last year, analysing the challenges and triumphs of 2010.

The Logistics Report collates a unique set of industry statistics and official data to present a dashboard of the performance of logistics in all modes and across the range of economic activities.

While 2009 was characterised by redundancies and insolvencies, figures reveal that fewer companies made staff redundant in 2010, with those expecting to do so in 2011 having halved. But with transport operating costs having risen well above inflation (the cost of diesel alone rose by nearly 15 per cent in 2010), road transport operators have clearly scaled back on investment and training.

FTA managing director, policy and communications, James Hookham said: "Logistics is the lifeblood of the economy, delivering raw materials, finished consumer goods, essential supplies and vital public services. Everyone should be interested in its performance and achievements.

"The Logistics Report 2011 tells the story of the past 12 months and presents an account of how the millions of people employed in the sector are responding to the challenges of fast changing commercial, political and natural environments."

The report covers the prevailing business sentiment amongst freight transport operators, based on FTA and PwC surveys and analysis; the dramatic consequences for transport policy and spending following the General Election and the Coalition government; and logistics' agility and responsiveness to two bouts of severe winter weather and the closure of air space due to the volcanic ash cloud emanating in Iceland.

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