Taking the pulse of the postal sectoral impact of COVID-19 measures: developments & implication
Updated: Oct 14, 2020
The situation created by covid-19 has challenged our postal networks, but thanks to the know-how and expertise of our operators, we have been able to continue to benefit from e-commerce & secure essential services. Do not miss the Copenhagen Economics postal web-conference on May 19th ! https://www.copenhageneconomics.com/postal-conference-2020/
Spiking e-commerce volumes are putting parcel carriers under pressure, prompting some urgent measures.
For example, this month the Swiss postal service announced it “could not cope” with the volume of parcel traffic and would limit daily volume allocations for its largest customers.
It had already expanded sorting activities to Saturdays, but evidently this was not enough to process the surging traffic.
According to DHL Parcel Germany, volumes kept rising and have reached levels normally seen in the run-up to Christmas, and the Norwegian postal service has reported up to 450% growth in residential deliveries.
"The world is going through and continues to go through an unprecedented health crisis; postal services during this period have proved more than ever a necessity for all" said Jack Hamande
Measures taken by governments during the crisis induced changes in behavior by private consumers and business customers, and seem to have both positive and negative impacts on the postal sector. On the one hand, the crisis has accelerated e-commerce and altered (i) the mix of items that consumers buy; and possibly also (ii) the delivery products’ mix used by e-commerce firms.
"Governments have identified our postal operators as essential to our societies. Let us never forget that again. "
Innovation started prior to the crisis. There are many examples of initiatives taken by postal operators. For example, over the past 12 months, Emirates Post has rolled out simplified integration processes and cash-on-delivery, in addition to establishing a hyperlocal network and a sustainable capacity model to support the rapidly increasing volume demands. With this new model, it can onboard new clients and support the delivery of essential and non-essential retail items in under a week.
The combined effort has allowed Emirates Post to deploy 99.8 percent of shipments on the delivery date promised on the purchase, with its on-time delivery track record exceeding 96 percent in the UAE.