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Analysis

INSIGHT: Peak season recap – logistics performance, top shipping routes and more

Yamin Myint Soe, senior content marketing executive, Parcel MonitorBy Yamin Myint Soe, senior content marketing executive, Parcel MonitorFebruary 20, 20246 Mins Read
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Every year, businesses spanning from sellers and resellers to importers and manufacturers gear up for the highly anticipated ‘peak season’, a pivotal period synonymous with heightened productivity and profitability. However, as demand surges and supply dwindles, businesses grapple with constrained capacity, soaring freight expenses and mounting challenges across the retail and logistics sectors.

Against this backdrop, Parcel Monitor’s post-peak season review digs into the essential features of peak season 2023, including logistics performance in key regions, top shipping routes, and trends that have revolutionized the e-commerce logistics industry. Key findings of the article include:

Europe had the greatest growth in parcel volumes during peak season 2023
In the ever-changing world of global commerce, Europe stands out as a powerful force, with a broad and growing e-commerce ecosystem. From the bustling streets of London to the bright markets of Berlin, the e-commerce revolution has swept across the continent, altering how businesses operate and customers purchase. That is why Europe has emerged as the big winner in terms of growth during the peak season of 2023.

According to Parcel Monitor’s in-house research, parcel volumes in Europe increased by an astonishing 43%, outpacing growth in the Americas (36%) and Asia (38.8%). This outstanding performance shows the strength and dynamism of the European e-commerce sector, as well as significant investments in logistics infrastructure throughout the region.

The busiest trade routes for peak season 2023

The top three busiest shipping routes originating from Europe:

1. Czech Republic to Germany (CZ-DE)
The CZ-DE route is an important cross-border link that enables efficient commodities exchange between the Czech Republic (CZ) and Germany (DE). It is dominated by carriers such as DPD Germany, Bauhaus and DHL Paket. Importantly, parcel volume increased by 37.76%, indicating strong demand for cross-border shipments during the peak shopping season.

Yet this boost in demand was accompanied by a 15.9% rise in transit time, with delivery times growing from 1.27 days before Black Friday, Cyber Monday (BFCM) to 1.47 days during the shopping frenzy. Despite the minor delay, the route maintained an acceptable first-attempt delivery success rate, with only a 0.76% decline from 96.0% pre-BFCM to 95.2% during BFCM.

2. Germany to Austria (DE-AT)
During the BFCM period, the shipping route connecting Germany (DE) and Austria (AT) had outstanding development, with a stunning 76.1% rise in parcel volume. This growth reflects increased consumer demand and the growing importance of the DE-AT corridor in permitting rapid cross-border delivery. Notably, the route’s leading carriers, including DHL Paket, Österreichische Post (Registered), Österreichische Post (Express), GLS Germany and UPS, contribute to the dependability and efficiency of cross-border trade.

Despite significant parcel growth, transit time rose by only 0.39%, keeping efficiency at 2.26 days during BFCM against 2.25 days before BFCM. Nevertheless, the first-attempt delivery success percentage fell by 0.69%, from 85.2% before BFCM to 84.5% during peak season. Although the DE-AT route may not have the shortest transit times or the best delivery success rates compared with other cross-border routes, it continues to be an important artery for trade and e-commerce in the heart of Europe.

3. UK to USA (GB-US)
The final of the top three busiest shipping routes from Europe is the route linking the UK (GB) and the USA (US), with parcel volume increasing by a remarkable 41.76%. This substantial rise demonstrates the enduring importance of transatlantic commerce, particularly during peak demand seasons. At the helm of the GB-US route are key logistics carriers, including Royal Mail, UPS and DHL eCommerce.

In keeping with the higher volume, the transit time for the GB-US route rose by 14.7%, from 4.79 days before BFCM to 5.50 days during BFCM. Despite that, the first-attempt delivery success rate improved by 1.78%, rising from 91.5% pre-BFCM to an astounding 93.3% during BFCM.

Top three busiest shipping routes originating from the Americas:

1. Canada to USA (CA-US)
The corridor connecting Canada (CA) to the USA (US) is one of the busiest in the world, demonstrating the strong economic partnership and geographical connection between the two North American neighbors. This route had a large increase in parcel volume, up 51.1% over the most recent BFCM period.

Despite the increased volume, transit time rose by 8.3%, from 3.49 days before BFCM to 3.77 days during BFCM. Concurrently, the first-attempt delivery success rate decreased by 0.20%, indicating possible issues in maintaining optimal efficiency at peak demand, albeit by a modest margin. Particularly, DHL eCommerce has distinguished itself as a prominent carrier on this route, along with LaserShip, Chit Chats and Wizmo.

2. USA to Canada (US-CA)
Similar to the CA-US route, the US-CA route also emerged as a powerhouse, with a startling parcel volume rise of 76.0% during the busy season. This significant spike indicates an increase in demand for cross-border shipments, which may be driven by increased e-commerce activity or seasonal consumer trends.

During this time, the top carriers on the US-CA route, such as DHL eCommerce, Purolator and USPS, have witnessed an 8.67% increase in average parcel transit time, from 4.64 days before BFCM to 5.04 days during BFCM. In the meantime, the first-attempt delivery success rate fell by 1.24%, indicating operational issues in ensuring effective initial deliveries amid increased workload.

3. USA to UK (US-GB)
Lastly, fortified by past ties and economic interdependence, the route between the USA (US) and the UK (GB) serves as the foundation for a significant exchange of products, demonstrating the two countries’ lasting and powerful trading relationship. This route saw a stunning 65.7% increase in parcel volume, highlighting the continued importance of transatlantic trade.

Furthermore, transit time rose by 10.4%, from 5.10 days pre-BFCM to 5.63 days during BFCM, which indicates possible complications in international shipping during peak season. Still, the first-attempt delivery success percentage for the US-GB route improved by 0.16%, rising from 96.7% pre-BFCM to an impressive 96.9% during BFCM. DHL eCommerce and Passport, both industry leaders, are driving this transatlantic trade by processing a large amount of e-commerce shipments from the USA to the UK.

Check out the full article for the rest of the findings

About Parcel Monitor
Your gateway to real e-commerce logistics data worldwide.

Parcel Monitor is the trusted source of e-commerce logistics insights – powered by real consumer data. Leveraging proprietary data and latest technologies, Parcel Monitor empowers businesses with actionable insights while facilitating collaborations across the entire e-commerce logistics ecosystem. Obtain customized insights on e-commerce logistics at www.parcelmonitor.com.

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