In 2023, there will be many challenges that the courier industry will face. Couriers globally are experiencing labor shortages, increased costs, higher customer expectations, technological advancements, unpredictable economic conditions, unreliable recorded data and research, and sustainability. These challenges are concerning, but many courier services are taking them in stride to secure their company’s sustainability.
Labor Shortages:
One of the most significant challenges across all industries in 2022 and 2023 is the labor shortage. Due to the pandemic, courier services were one of the hardest hit industries as workers resigned, not wanting to have to come in contact with others on deliveries. Although the option of contactless delivery was available, many wanted to avoid taking the risk of being out and about. Those who remained during the pandemic were soon overworked and left understaffed, causing lower morale and unsatisfied consumers. CNN reports that there may be an impending recession, although unemployment rates have dropped from 4% to 3%, with 11.3 million jobs available in January 2022.
According to the bureau of labor statistics, the average employee turnover rate has reached 49%. Currently, the ATA predicts that labor shortages in the courier industry for drivers will double from 80,000 to 160,000 by 2030. Reliable couriers are actively hiring local couriers and delivery drivers to combat labor shortages. We employ drivers that are residents in the communities they serve so they may help the businesses in their cities. With our local delivery drivers meeting the same day delivery needs of businesses in their community, it helps to accelerate the local economy and open up more job opportunities in the area.
Rising Costs:
Across the world, individuals and businesses are feeling the pressure of increased costs of goods and services. So it is no surprise that the courier industry is also feeling the pressure with the cost of running their delivery services. Some of the top business expenses posing the biggest challenge to the courier industry are the cost of freight and gas.
Gas:
Starting in 2022 with the global oil crisis prompted by the war in Ukraine, the national average of retail gas prices reached an all-time high of $3.29 a gallon. Gas prices are not expected to go down anytime soon either according to GasBuddy. In June 2023, the average cost per gallon of gas is expected to reach $4.25 a gallon. With the cost of gas increasing, couriers still must fuel their fleets in order to make consumer deliveries.
With no end in sight for the rapidly increasing gas prices, many couriers are taking the steps necessary to cut costs where they can to keep courier services affordable or are investing in a full fleet transition to electric vehicles. There are many pros and cons of an electric fleet, and with the increasing cost of gas, the more the pros begin to outweigh the cons.
Freight:
From January 2019 to September 2022, the global freight rate drastically increased its index due to covid-19 causing port closings. With the gradual reopening of ports, many are still in closure or face great congestion, labor shortages, lack of new shipping containers, and difficulty utilizing full capacity.
To help improve efficiency and make freight shipping more affordable, Reliable couriers train their couriers to streamline the process of delivering freight and complete the paperwork necessary as efficiently as possible. The couriers who deliver the freight are also familiar with the ports and locations they regularly pick up from and can complete the required protocols of that location more efficiently than other delivery drivers.
Customer expectations
Due to the pandemic, consumers shifted into the online world and began purchasing online instead of in-store. Consumers began to enjoy the simplicities of online shopping and the instant gratification it gave. Customers could quickly communicate with sellers, see when their packages would be delivered, and even select how quickly they wanted to be delivered and do all of this from the comfort of their homes. Over time, consumers have become increasingly demanding and dependent upon online shipping and delivery services. Due to this, consumers want their packages delivered as quickly as possible, and larger shipping companies cannot keep up with routes.
Reliable couriers meet customer expectations by providing a variety of services to all businesses and individuals. Our delivery drivers are capable of delivering packages with our 1-hour, 4-hour, next flight out, and same day delivery services to get companies and consumers the deliveries they need when they need them. The size of the delivery is also no issue thanks to Reliable courier’s large fleet of vehicles ranging from sedans and cargo vans to box trucks with lift gates capable of transporting 10,000 pounds of palletized freight.
Technological developments:
The advancement of technology can both help and hinder any industry. With ever-changing technology, courier services must keep up with the technology its consumers utilize and accommodate those who do not have newer technology. With newer transportation management systems calculating routes faster than ever, if a courier service does not use them, it could end up costing them and their customers more than it should. If a courier continues to fall behind in technology and efficiency, it may soon begin to lose its customers to competitors.
It is crucial to have the most effective and efficient technologies possible in order to provide the most cost-conscious services. Reliable couriers pride themselves on having the most up-to-date server systems for quick dispatching services. We also have our fleet of vehicles equipped with the latest technology and GPS tracking systems. This helps us provide the most technologically advanced courier service available.
Unpredictable Economy:
Industries across the nation are fearful of how unpredictable the economy has become. Within the courier industry, supply chain trends are one of the most important integrals of data to record in order to help accurately predict future values. Delivering issues can lead to further problems and higher costs without properly recording data and analytics. Penn State University found “only 27% of 3PLs are actually satisfied with their current analytic capabilities. It’s a major issue that impacts logistics planning, identifying cost leakages, benchmarking KPIs, analyzing delivery failure reasons, and more.”
At Reliable couriers, we understand the unpredictability of the economy and have been able to track our data and analytics since our conception with great accuracy. Our analysis is 99% effective and has always remained conservative in predictions of future values. As a result, reliable couriers anticipate the economy as best as possible and provide their consumers with the best value and service possible.
Among all the challenges the courier industry faces in 2023, Reliable couriers prevail. Our team of delivery drivers is dedicated to meeting business, and consumer courier needs 24/7 across all industries. Regardless of an unpredictable economy, increasing operation costs, technological advancements, labor shortages, and increasing customer demands, we make deliveries as efficiently as possible. Find out how we can meet your same day delivery needs by calling our dispatchers or completing an online quote request form.
