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Trends and Challenges for Last-mile Carriers
July 6, 2021

Trends and Challenges for Last-mile Carriers

According to Omnitracs, last-mile carriers serviced 21 per cent more stops in 2020 than in 2019 as demand for same-day and next-day delivery options accelerated during the pandemic. With North America’s last-mile delivery market expected to reach nearly $45 billion by 2024, carriers should take advantage of this growth by working closely with shippers and third-party logistics (3PLs).

The following are trends last-mile carriers must navigate in order to expand business successfully:

  1. Booming e-commerce demand—According to Digital Commerce 360, consumers spent $861 billion on online shopping in 2020, a 44 per cent increase from 2019. Consumer demands and expectations also shifted, as consumers expected goods to be delivered faster than ever. Last-mile carriers should look to create a robust plan that includes route planning, transparency and communication to ensure timely deliveries.
  2. Bigger and heavier freights—Heavier freight items with unique service requirements, such as after-hour deliveries to businesses, offer last-mile carriers the opportunity to acquire jobs of which other carriers may not be capable. For example, delivery companies specializing in heavy- and service-sensitive freight can transport items such as medical devices, exercise and home office equipment. Blending warehousing and delivery services with shippers and 3PLs can ensure smooth order fulfilment for customers.
  3. Offering what others can’t—Last-mile carriers can target customers with on-demand freight that needs higher service requirements, real time visibility, delivery options, mile carrier tracking, and custom delivery experiences. By offering what others can’t, last-mile carriers can beat out the competition and gain more opportunities for expansion.

Implementing efficient last-mile delivery processes can give carriers the opportunity to adapt to changing consumer demands and differentiate their offerings from the competition.

For more trucking trends and challenges, or to find out how to reduce your insurance costs call CMB at 780.424.2727 or click here to get a quote. More information on trucking insurance can be found here.