Complications Created by Failing Logistics Companies

A record number of courier and trucking businesses collapsing last year led to a raise of insolvencies in the logistics industry. Insolvencies jumped from 20% to 221 in 2014, which is more than double the 2010 figure. Overcapacity in the sector drove prices down.

Companies were forced to reduce their fees. Online spending decreased by 14%, and shifting demands forced companies to invest heavily into IT programs and to overhaul operations. They were also forced to invest into automated warehouse operations that allowed companies to process large volumes at speed. The investments also provided customers with updates on a packages progress.

Logistics companies face challenges such as adapting to changing consumer habits. Due to retailers flooding this company with half a million parcels the UK’s second largest parcel carrier, Yodel, was forced to suspend parcel collections for two days. The Road Haulage Association is 60,000 drivers short and is looking to raise their numbers to 257,000 by 2022.