The 2024 peak season for logistics and e-commerce was possibly the busiest and most condensed ever, according to Jonny Mocton, CEO of international logistics company ITD Global. With over 20 years of experience in the industry, Mocton believes that the challenges and successes of this year’s peak period were marked by intense demand, as well as evolving provider dynamics within the UK’s logistics market.
Reflecting on the season, Mocton described the build-up to Black Friday in November, which came late this year, as a time of cautious consumer spending. With ongoing cost-of-living concerns, shoppers were hesitant and kept a close eye on discounts. However, the expected surge in demand arrived in full force as December began, with ITD Global handling an impressive 450,000 parcels in their busiest week, marking a 20% increase from the previous year.
Despite a backdrop of uncertainty in the logistics industry, Mocton noted that UK carriers performed well overall. The landscape has been evolving, with some of the major providers, such as Evri, being sold or actively seeking buyers, and the government recently investing in Royal Mail. These shifts could lead to changes in pricing and service models, potentially impacting the wider logistics sector.
The UK’s logistics market continues to attract significant investor interest, particularly due to the relatively low domestic shipping costs compared to mainland Europe. With the UK’s e-commerce sector being the fourth-largest globally, behind China, the US, and Japan, there is ongoing optimism about future growth, despite current market challenges.
However, some logistics providers, such as Yodel, experienced hiccups during the peak period. ITD Global’s flexible business model, which allows clients to switch carriers without penalties, meant the company could swiftly reroute volumes to other carriers, minimising disruptions. The weather also played a significant role, with limited adverse effects on domestic and international deliveries.
In a positive development, ITD Global also saw its partnership with Royal Mail expand, with around 10% of their volume passing through the service. The company observed a noticeable shift in Royal Mail’s service and attitude, particularly ahead of new investments by EP Group, which contributed to improved reliability and competitive pricing, especially for smaller, domestic parcels.
International logistics also saw an increase in traffic, though not without challenges. High air freight costs, particularly due to reduced passenger flights to and from Asia, were exacerbated by ongoing geopolitical tensions and growing competition for freight space from Chinese companies like Temu. Nevertheless, the company’s growth was primarily driven by existing clients in various sectors, including pet food and pet care, with the UK continuing to demonstrate its enduring love for pets.
Looking ahead, Mocton is optimistic about the industry’s prospects, with steady growth in UK e-commerce and expanding opportunities for cross-border trade, especially to Europe. Despite rising air freight costs, he expects these to stabilise in the coming months. To meet the increasing demand for international logistics, ITD Global has appointed three new Business Development Managers to support clients in regions such as China, the US, and the UK.
Mocton emphasised that the key to continued success is meeting customer expectations around delivery timeframes, transparency, and communication, which is why tech investment remains a top priority.
