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Express industry ready for a bumper peak season

[ November 13, 2024   //   ]

Parcel carriers will collectively distribute 1.29 billion shipments across the UK between October and December 2024, 10.9% more than in the same period in 2023, according to a new study by Effigy Consulting, commissioned by FedEx, the world’s largest express carrier.

The data also shows a significant increase in the UK figures for 2023, up from 1.17bn parcels to 1.29bn in 2024, making it the busiest market in Europe for parcels this peak season, representing 21% of the total deliveries made.

The UK will outstrip Germany and France, with Germany accounting for 17% (1.1 billion parcels) and France 8.4% (524 million) of the total parcels delivered across Europe. This growth is being driven by a rise in e-commerce which accounts for 70% of shipments going directly to consumers across Europe.

Why the UK should outstrip Germany, with its larger population, or France, which is similar-sized, isn’t entirely clear, says operations managing director at FedEx, Alun Cornish. It might though have its roots in the strong mail order business in the UK, particularly in the North-west, which were a major force in British retailing long before the invention of the Internet.

One factor in UK trade that is often overlooked, he adds, is that it retains a very strong export foundation. While the general consumption among the British publish is that ‘this country doesn’t make anything any more’, that is not borne out by the express industry’s figures. UK exports may be slightly less tangible in the past – no ships, trucks or other large pieces of metalwork – but in value terms they are stronger than ever.

FedEx has seen an upsurge in enquiries about exports from smaller UK firms, “many of whom have no high street shops but are interested in opening up global markets. One apparel industry customer he have found that 41% of its enquiries came from outside the UK, for instance.”

Exporters to the EU have had to get to grips with the need for customs clearance, of course, but FedEx is able to provide ‘hand-holding’ services for customers that need it. Cornish points out: “Our research shows that exports are growing and there has been a particular surge in e-commerce. A much larger percentage now is direct to consumer, though we are seeing some growth in freight as well.”

There is also new technology that can analyse and anticipate where delays and bottlenecks are occurring, as well as systems that continuously monitor the temperature of sensitive shipments.

The end-year peak in the e-commerce market is made up of three events – Singles Day, which had its origins in China where single people were urged to go to the shops and treat themselves to something, Cyber Monday or Cyber Weekend in December (originally Black Friday, traditionally the day on which US retailers generally went in the black and could afford to offer generous discounts) and, of course, Christmas and New Year.

According to FedEx’s research, 6.2bn shipments will be made across Europe between October and December 2024, 9.0% more than in the same period in 2023. The UK is one of the fastest growing major European countries with a growth of 10.9% on last year, outpaced only by much smaller markets such as Portugal, Poland, Turkey, Croatia and Bulgaria.

“That actually gets us back to pre-pandemic levels and for many customers, the period decides whether or not they will have a successful year,” says Alun Cornish. “We will be adding 1015% more capacity from within our own resources, with extra aircraft and more cross-border trucking laid on.” More people will be needed too, something that FedEx starts to plan for as soon as the previous year’s peak season is over. “Fortunately, also, our permanent employees are very flexible, being willing to work extra shifts and so on,” Cornish adds.

During the peak, total European volume (4.878bn cubic feet) would fill Wembley Stadium 34 times over. The total weight of goods transported across Europe at this Peak will be almost 7.5m tonnes, which equates to around 15 kg for every person living in the EU and the UK.

FedEx’s main UK air hubs are at Stansted, East Midlands, Manchester (a new addition that has now been upgraded to a larger aircraft), Teesside and Edinburgh. It has been taking additional space and upgrading facilities at many locations, including East Midlands, Stansted and Heathrow.

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