Google AI

Weekend Times


The Times

Business News

Why hasn't my parcel arrived yet? Delivery and supply chain problems are multiplying – and yes, it'll probably affect Christmas

  • Written by: Flavio Macau, Associate Dean Teaching & Learning, Edith Cowan University
Why hasn't my parcel arrived yet? Delivery and supply chain problems are multiplying – and yes, it'll probably affect Christmas

Does it feel lately like your parcels are taking forever to arrive? You might have seen online retailers warning customers to expect delays, thanks to COVID-related pressures on the postal system and other delivery services.

We are 18 months into the pandemic and, far from being solved, the cracks in the global logistics system are multiplying. E-commerce is booming but despite rerouting deliveries and staff working extra shifts, delays are becoming the norm.

So what’s happening, and will all your purchases make it in time for Christmas?

Manufacturing troubles

A lot of what we buy these days is made overseas. Many products get to us after a long international journey, which has been made even more complicated by COVID-19.

The first crack in the system is at the manufacturing level.

Manufacturers can’t always guarantee volumes at the moment. Some are out of parts, with critical suppliers pausing operations due to lockdowns. Some are out of power, with many factories in China having to stop production[1] for hours each week due to power shortages. Some are out of cash, with many commodities doubling their prices in just one year[2].

Transportation woes

Transportation is not a given.

Shipping containers sit for two weeks or more waiting for a berth[3] and the cost of transporting it is four times as much[4] as in 2020.

While international commerce rebounded quickly after the initial shocks caused by COVID-19, repositioning containers and ships take time. Also, there just aren’t enough of either.

With crews unable to go onshore[5] in several countries, there are fewer hands on the deck.

A blockage in the Suez Canal[6], a port terminal pausing operations due to a COVID-19 case[7], a typhoon[8] looming en route – it seems there is always one more obstacle to add to the list of transportation woes.

A ship blocks the Suez Canal.
A blockage in the Suez Canal? A port terminal pausing due to an outbreak? There’s always some new transportation obstacle to overcome. Maxar Technologies Handout/EPA

Storage is struggling

Storage services have also been profoundly affected by COVID-19.

Retailers have to adapt[9] from working with large stores in bricks-and-mortar retail stores to sending parcels to individual consumers from the online channel.

It is a new mindset. The equipment is different, the flow is affected, processes must be redesigned, and complexity increases.

Additional obligations apply[10] to warehousing and distribution centres.

If COVID-19 finds its way into a retailer’s facilities, doors must be closed for hours for deep cleaning. Sick employees and close contacts go into quarantine, removing entire shifts from the operation. Mandatory vaccination rules are updated constantly.

The last mile is suffering

Delivery services represent the crucial “last mile” to get the product to the buyer.

But since the pandemic struck, truck drivers have been scarce and must contend with new delivery protocols[11], COVID-19 tests every few days, movement restrictions, long hours and soaring fuel prices[12].

So if your package is late or you can’t find a product, don’t just blame Australia Post or your favourite retailer. The delay may be caused by problems much further up the supply chain.

Supply chains are used to find solutions to problems. What’s new is these problems are now happening everywhere, at the same time, and staying for longer than expected.

A man with a delivery box arrives at the door. So if your package is late or you can’t find a product, don’t just blame Australia Post or your favourite retailer. Shutterstock

What does it mean for me? And for Christmas?

If you live in Australia, know that you are not a priority: international shipping to Australia was reduced[13] in the past few months. That said, there should be no shortage of essential items. If you can’t instantly find exactly what you want, be patient or experiment with a different brand.

As for Christmas, don’t expect to buy online in early December and have your parcel delivered by the 25th. There is only so much Australia Post or any other delivery company can do.

An Australia Post van waits outside a building. There’s only so much Australia Post can do. Shutterstock

Don’t expect all your favourite groceries to be fully stocked on Christmas Eve. Be ready to replace your glazed Christmas ham with crayfish if you visit the supermarket too late, as abattoirs are again hit by restrictions[14].

Don’t expect to pay the same as last year. Higher lead times, inventory and fuel prices are driving up supply chain costs. UK supermarket prices are set to rise 5%[15], and Australia shouldn’t be much different.

Relief will come to global logistics after Christmas but things should go back on track only by 2024. It will take a while to get most of the world vaccinated, go around energy shortages, rebalance international routes and adapt to the explosion of e-commerce.

The new normal is on its way. Just don’t expect it for Christmas.

References

  1. ^ many factories in China having to stop production (www.nytimes.com)
  2. ^ many commodities doubling their prices in just one year (www.bloomberg.com)
  3. ^ waiting for a berth (www.washingtonpost.com)
  4. ^ the cost of transporting it is four times as much (www.drewry.co.uk)
  5. ^ crews unable to go onshore (pursuit.unimelb.edu.au)
  6. ^ blockage in the Suez Canal (www.bbc.com)
  7. ^ pausing operations due to a COVID-19 case (www.reuters.com)
  8. ^ typhoon (edition.cnn.com)
  9. ^ Retailers have to adapt (www.mckinsey.com)
  10. ^ Additional obligations apply (www.coronavirus.vic.gov.au)
  11. ^ delivery protocols (www.nhvr.gov.au)
  12. ^ soaring fuel prices (www.news.com.au)
  13. ^ international shipping to Australia was reduced (www.news.com.au)
  14. ^ restrictions (www.mla.com.au)
  15. ^ UK supermarket prices are set to rise 5% (www.theguardian.com)

Authors: Flavio Macau, Associate Dean Teaching & Learning, Edith Cowan University

Read more https://theconversation.com/why-hasnt-my-parcel-arrived-yet-delivery-and-supply-chain-problems-are-multiplying-and-yes-itll-probably-affect-christmas-169259

The Weekend Times Magazine

Let's talk about nits!

My daughter struggled with nits for 8 years until I found this miracle cure Nits. The one-word granted to strike fear into mums everywhere … and have them immediately scratching their...

Smart Lock: The Future of Home Security and Convenience

A smart lock has revolutionized the way people think about home security. Moving beyond traditional keys and mechanical locks, smart locks bring technology and convenience together, offering homeowners and businesses a new...

How Custom Made Inflatables Can Turn Your Backyard into a Kids' Wonderland

If you're planning an event for your kids at home, transforming your backyard into a magical wonderland is easier than you think. Custom made inflatables offer a versatile and fun...

Men’s style: where to buy it and how to build it

Most men are not taught style. They are taught how to work, drive, earn money and solve problems. Fashion and presentation are often treated as secondary concerns, something instinctive that men...

Why Probiotics for Dogs Are Important for Digestive and Overall Health

Maintaining a healthy digestive system is essential for a dog's wellbeing, and probiotics for dogs have become increasingly popular among pet owners looking to support their pet’s health naturally. The digestive...

Year 11 Chemistry Tutor: Preparing Students for Senior Chemistry

Families considering year 11 chemistry tutor often look for a program that can support the student’s current subjects while building skills for future study. Zhang’s HSC Coaching provides structured programs, experienced educators...

Why Wisdom Teeth Extraction Is Often Necessary for Long-Term Oral Health

For many people, the emergence of wisdom teeth can lead to discomfort, crowding, and ongoing dental complications. Professional Wisdom Teeth Extraction is commonly recommended when these late-developing molars do not have...

The Vital Role of Indemnity Insurance in Nursing

In modern healthcare, nurses operate within an increasingly complex professional environment that exposes them to a wide range of risks. Their responsibilities extend from direct patient care to managing complex...

Laser Skin Clinic Kew: Advanced Treatments for Radiant, Healthy Skin

With advancements in modern cosmetic treatments, people no longer need to rely solely on skincare products to achieve visible results. Professional clinics offering laser technology have become trusted destinations for...

hacklink esim new zealandjojobetjojobetjojobethacklink panelBetim