In this podcast episode of The Last Words on the Last Mile by Last Mile Prophets, Marek Rozycki, Managing Partner at Last Mile Experts, and Ian Kerr, Co-Host of The Postal Hub, discuss the challenges US carriers are facing due to the peak season capacity crunch.
The shortfall of 7 million parcels
The episode kicks off with Ian and Marek discussing the widely-reported potential shortfall of 7 million parcels in the US during peak season last year. Both experts agree that this estimated shortfall of 7 million parcels is likely an exaggeration, but acknowledged that there will indeed be a shortfall caused by the capacity crunch in the US.
In fact, Marek shares that the capacity crunch in the US has already been an issue for years as carriers have failed to invest in infrastructure and technology to better their last-mile delivery capabilities.
Last-mile in China
On the other hand, logistics providers in China had begun investing in their last-mile capacity since 5 years ago. For instance, China has approximately a network of 400,000 parcel lockers! Whilst the US has been taking steps in this regard, such as setting up Pick Up Drop Off (PUDO) networks across the country. This is clearly not yet enough to alleviate the capacity crunch issue in the US…at least for now.
To find out more about how Amazon is dealt with the capacity crunch in peak season last year, check out the full podcast episode below!
About Last Mile Prophets
Last Mile Prophets is a platform that shares unique and latest knowledge about the last mile, courier express, and parcel sector. The platform is catered to specialists and leaders working for carriers, e-commerce players, and government organizations interested in the latest developments in the last mile.
About Marek Rozycki
Marek Rozycki is Managing Partner at Last Mile Experts; a specialist courier express & parcel and e-commerce last-mile consultancy. He has been an industry advisor for several Private Equity Firms and advised a number of e-commerce players or Postal operators on strategic projects.