Inflationary pressures and the return to bricks-and-mortar shopping is likely to soften this year’s peak parcel delivery period, according to the chief of DHL Express Australia.
Gary Edstein, local CEO for the German-owned logistics company, expects a lower peak this year than in 2020 and 2021, when online spending peaked during lockdowns.
“I don’t envisage peak to be as big as what we’ve had before,” he said.
“Back in 2020-2021 people were locked up, isolated, shopping online. Now that we’re out and about we’re spending discretionary income on things like hospitality and travel.
“We’ve also seen inflation and interest rates go up and there is less discretionary income for online retail, so it’s sort of softening in BTC (business-to-consumer).”
Australia Post delivered 52 million parcels last Christmas, a record December period for the nationally-owned carrier.
Despite inflation hitting a thirty-year peak, DHL’s own export barometer — in which the freight giant surveyed 948 Australian businesses between August 31 to September 21 — revealed 70 per cent of companies were confident of growing sales within the next twelve months.
“Recent global events have highlighted the interconnectedness of supply chains and the critical importance of logistics in ensuring the continuity of trade flows and supply of vital goods,” Edstein said.
“Although pandemic-related export challenges have remained on the scene in 2022, Australian exporters have assessed potential risks to their supply chains and business operations, strategically implementing a range of actions to mitigate disruptions.”
Edstein warns that commercial airfreight parcel delivery capacity was still 18 months away from pre-pandemic levels.
