Last Mile Brief: 19/01/2023: Maersk’s latest market update points to growth of PUDOs

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In today's Last Mile Brief, we've news on 2023 last mile insights from Maersk, more on the fallout over last mile delivery disruptions in the UK, as well as DHL's new fulfillment centre in Germany.

Last Mile Brief: 19/01/2023: Maersk’s latest market update points to growth of PUDOs
Photo: Adam Kent / Flickr / CC BY 2.0

Today’s headline story: Maersk’s latest market update points to growth of PUDOs and use of local last-mile operators

Maersk’s first market update of the year has forecast growth of out-of-home delivery and use of PUDOs, as well as an increase in the use of local last-mile operators.

“With many businesses still struggling with counting the costs of strikes and delays during peak period, 2023 might be the year many decide to reconsider their delivery options offering,” says the shipping giant.

According to Maersk, one way to alleviate inflationary pressures is to use multiple last mile carriers per destination, as well as having the flexibility to switch carriers swiftly, both in terms of technology and physical tasks.

Maersk also expects that due to delays, 2023 we will see “a preference for alternative delivery options, such as PUDOs, click and collect and parcel lockers.”

The Danish logistics company adds that “ensuring they have the right last mile carrier and option setup will allow brands to drive up their Net Promoter Score (NPS), which directly impacts conversion and retention in online sales.”

The same is true for brands delivering to multiple destinations, argues Maersk. It states that using local last mile carriers can “not only help increase their NPS, but also drive down costs as local last-mile rates are generally lower than rates of pan-European integrators.”

Finally, Maersk adds that with sales going down or stabilizing across the region, brands are looking for growth beyond their home markets.

“Having access to the right local last-mile carrier setup is key for success. To support our customers in this process, Maersk E-Delivery now provides customs clearance directly to Ireland and a competitive transit time from UK and other non-EU countries to the Irish market,” says Maersk.

Europe round up

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Photo:  Adam Kent / Flickr / CC BY 2.0

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