UK faces late parcel deliveries over Black Friday and Christmas

UK customers ought to put together for late deliveries in the course of the Black Friday gross sales subsequent week and within the lead as much as Christmas, couriers have warned, as retailers brace for strikes by Royal Mail postal staff throughout the important thing procuring interval.

Supply corporations together with UPS and Yodel informed the Monetary Occasions that they’ve been contacted by a number of retailers hoping to safe their companies, however the trade has restricted capability to deal with the additional demand in the course of the industrial motion.

Royal Mail is the UK’s main courier, delivering 30 per cent of the nation’s parcels final 12 months, in keeping with logistics group Pitney Bowes.

However the firm is locked in a dispute with staff over plans to modernise as competitors will increase from rivals, which have grown quickly by using employees on decrease salaries and extra versatile contracts.

Postal staff have already walked out for eight days this 12 months, with 4 extra strikes scheduled in early December and in the course of the Black Friday gross sales in late November, a key date for retailers.

Mike Hancox, chief government of Liverpool-based courier Yodel, mentioned the commercial motion was a “short-term win”, with the corporate dealing with as much as 10 per cent extra parcels than regular.

In current weeks, large UK retailers and Chinese language exporters have approached Yodel as they search to mitigate the impression of the strikes, he added, whereas declining to call companies.

However Hancox warned that Yodel had booked staff and warehouse area for the height winter interval lengthy earlier than the strikes had been introduced.

Royal Mail’s rivals are “all fairly near capability”, he mentioned. “I’d be saying to customers: make your decisions in your Christmas presents early. Place your orders early.”

Rick Fletcher, managing director for UPS within the UK, Eire and the Nordics, additionally mentioned companies had been racing to get in contact with the US courier within the lead as much as the strikes, with ecommerce orders anticipated to stay above pre-pandemic ranges regardless of the price of residing disaster.

However he mentioned that UPS can not increase capability considerably at this stage and the corporate will prioritise serving current clients. “Will there be disruption? Inevitably,” he added.

The frenzy by retailers to ditch Royal Mail for its rivals underlines how the strike motion has deepened the corporate’s woes.

After centuries as Britain’s trusted courier, the previous state-owned enterprise is steadily bleeding money. In October, Royal Mail warned it was shedding as much as £1mn per day because it additionally contended with declining demand for letter deliveries.

“It’s clear there’s most likely extra contingency planning [by retailers this winter] than ordinary,” mentioned Michael Rouse, chief government of parcel locker supplier InPost Worldwide. However “there’s all the time going to be limits”.

“There’s restricted capability pushed by scarcity of labour and I don’t assume it’s remoted to Royal Mail,” he added.