Commonwealth_ FedEx‘s new study forecasts a significant increase in parcel shipments across Europe for the peak season in late 2024, with the UK leading the charge. The study, based on data from Effigy Consulting, reveals that UK carriers will handle approximately 1.29 billion parcels from October to December 2024, representing a 10.9% increase over the same period in 2023. The UK will account for 21% of the total parcel volume in Europe during this period, equating to 12 parcels per person in the UK and Europe.
The continued growth of e-commerce, responsible for nearly 70% of shipments going directly to consumers across Europe, is largely driving this sharp increase in demand. During the peak season, the UK will be the busiest market for parcel deliveries, with Germany handling 1.1 billion parcels (17% of Europe’s total), and France accounting for 8.4% of deliveries with just over half a billion parcels.
Alun Cornish, Vice President of Network Operations at FedEx, emphasized the importance of the peak season for UK businesses, many of which rely heavily on transportation and logistics to meet increased demand. With the ongoing shift toward e-commerce and cost-conscious consumer behavior, the logistics sector is adapting more flexible solutions, including deferred services and a stronger reliance on technology to streamline operations.
The study also highlighted how companies are preparing to meet the demands of the “golden quarter” through adaptive strategies. FedEx’s networks are scaling up with a combination of air and road transportation, alongside advanced predictive technologies to help navigate potential disruptions during the busiest time of the year. This ensures that businesses can meet the surge in demand without compromising on speed or reliability.
Europe as a whole will see 6.2 billion shipments between October and December 2024, marking a 9% increase compared to the previous year. Only Portugal and Poland surpass the UK’s growth rate of 10.9%, making it one of the fastest-growing markets. This growth in the UK and across Europe is a direct reflection of the strong e-commerce trends that continue to reshape the logistics landscape.
To better illustrate the scale of these shipments, the study pointed out that the total volume of shipments for Europe would fill Wembley Stadium 34 times over. The total weight of goods transported across Europe during this period will be nearly 7.5 million tonnes—roughly equivalent to 15 kg for every person living in the EU and the UK combined.
In addition to handling a growing number of parcels, the logistics industry is facing the challenge of managing sustainability and maintaining compliance with evolving regulations. This involves labeling shipments appropriately and adhering to international standards. One key challenge for many large businesses, especially those in the $1 billion+ revenue range, is managing inbound goods and preventing mislabeling, which can lead to costly fines. The study reveals that nearly 70% of these large companies must relabel goods, a process that is resource-intensive and expensive. To combat this, many firms are seeking controlled access to labeling standards to streamline operations and reduce mistakes.
The survey also explored the growing role of technology in improving supply chain transparency and efficiency. A notable trend is the use of artificial intelligence to detect counterfeit goods, with 78% of professionals believing AI can significantly aid in identifying fakes. Additionally, 59% of companies are using serialization technology to address supply chain challenges.
The shift toward digital transparency is crucial in creating more resilient and safer supply chains. Cloud technology, which facilitates digital traceability, plays a vital role in enhancing visibility across the entire supply chain. This helps companies track shipments, ensure timely delivery, protect consumers, and prevent counterfeiting. Digital Product Passports (DPPs) are also gaining traction as an essential tool for improving supply chain transparency. These passports allow stakeholders to access information about a product’s origin, materials, sustainability practices, and more, empowering informed decisions.
