Preparing for the festive season is a yearly ritual for logistics firms, but the challenges of 2024 bring a new level of complexity that demands careful planning and strategic foresight. With hurdles such as the disruption in the Red Sea and a mid-week Christmas (increasing weekend delivery pressures) this year presents unique challenges. Add to this the extended Christmas period caused by Black Friday and Cyber Monday, and it’s clear why industry voices are calling it the ‘perfect storm’; two leaders in the industry, Aramex UK’s regional CEO Umar Butt and Angus Hind, Director of Europa Air & Sea, have used this exact phrasing.
Get ahead of the game by acquainting yourself and your team with the challenges ahead, and taking steps to prepare.
2024 Christmas pressures:
Nearly one year on, attacks in the Red Sea continue to cause freight companies to adjust shipping routes. The alternate route around the Cape of Good Hope has boosted container rates, and adds 7 to 10 days of transit time in each direction. This has put huge pressure on stockpiles of carriers’ equipment and could cause continued port congestion. Add this to the increased volumes of Christmas, and logistics companies are facing delays and uncertainty.
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Mid-week Christmas – pressure on weekend deliveries
Christmas in 2024 falls on Wednesday, meaning there will be increased pressure for deliveries to be completed the weekend before. Retailers will be looking for logistics partners with strong Saturday and Sunday offerings, without extra costs.
Logistics UK Head of Trade has commented that for logistics companies, “rising costs are putting pressure on their ability to keep trading.” As well as the raised shipping costs caused by the Red Sea disruption, post-Budget, there are raised National Insurance contributions, minimum wage and business rates to consider.
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Black Friday and Cyber Monday causing an extended Christmas period
The influence of Black Friday and Cyber Monday extends the holiday shopping season, creating an elongated period of peak demand that logistics firms must manage. This trend means sustained high volumes of orders and deliveries well into December. A surge in shipping expenses during this period can reduce profits for warehousing and logistics firms, with recent figures showing that carrier costs rose by 25 per cent during Black Friday week last year.
Ways to prepare:
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Kickstart people planning early
Businesses should get a head start forecasting demand and potential periods of staff shortages. 90 percent of supply chain firms take on extra staff to help them manage seasonal demand, yet nearly a fifth say they struggle to fill these positions. By taking a proactive approach, logistics businesses can start the recruitment process for temporary positions in advance, with enough lead-time to enlist agency support if finding the necessary boots on the ground is proving difficult.
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Educate your team about potential challenges
Make sure that your drivers are aware of upcoming delays: both their potential impacts, the dates they are expected and the causes. A large number of the delays around the onset of border target operating model, for example, could be traced to a lack of education for drivers and carrier companies about the requisite new certification needed. Get ahead of every new legislative and infrastructural change with training courses, information packs and smart objectives related to adapting and thriving.
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Prioritise weekend delivery and earlier last posting dates
To combat the pressures of a mid-week Christmas, logistics companies should be considering the weekend before and making sure they are sufficiently resourced to fulfil all their orders. Communicating earlier last posting dates to customers and clients can also help manage expectations and reduce last-minute rushes. By encouraging customers to plan ahead, logistics firms can maintain operational efficiency while meeting service standards.
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Build in contingency plans
Having contingency plans in place is crucial for navigating the unpredictable landscape of 2024. These plans should cover a range of scenarios, from supply chain disruptions due to geopolitical conflict to staffing shortages as a result of illness. Regularly reviewing and updating contingency plans ensures that they remain relevant and effective. Engaging with stakeholders and involving them in the planning process can also provide valuable insights and foster a collaborative approach to problem-solving.
The Christmas season of 2024 presents logistics firms with a unique set of challenges that require careful planning. Awareness of what is causing this “perfect storm” is a good first step. By understanding these challenges, leaders should get ahead preparing the team, evaluating processes, and, as much as possible, turning it into a learning opportunity rather than a last-minute panic. Getting started early, empowering your team and devising plans for every eventuality will help turn potential obstacles into opportunities for growth and innovation.
How OneAdvanced products can help:
- Time & Attendance – Create new schedules quickly and easily in response to change with automated rostering, allow your staff to flag availability to plug gaps, analyse past absence patterns
- Payroll – Make sure new temporary staff are paid quickly and easily
- Performance & Talent – Set agile goals related to adapting to challenging conditions and new rules
