Ho-Hum Holidays: Logistics Teams Are Braced For Higher Costs And Other Problems

Email teams shouldn’t get too comfortable as this gear up for this year’s holiday season. 

The brands they work for are uncertain — or at least, their logistics workers are. For instance, 32% expect revenue to decrease, versus 33% who foresee an increase and 25% who are uncertain, according to The 2022 Last Mile Holiday Perspective, a study from DispatchTrack, conducted by SurveyMonkey.  

What’s more, 92% expect higher operating costs, and that percentage rises to 93% when fuel is added. 

Drilling down, 56% expect a 10%-20% increase in costs, while 27% anticipate a 25%-50% hike. And 39% predict a 25%-50% fuel increase.  

A heroic 25% do not plan to raise their prices despite cost increases. 

Costs aside, 82% worry about missing delivery windows again this season. Of those, 66% are just as concerned or more than they were last year. 



In addition,  80% are uneasy over fuel costs.  

Despite last year’s problems, only a third are planning for the holidays earlier this year.   

In general, logistic people say they are worried about: 

Inflation — 50%

Driver shortages — 48%

Losing business due to the economy — 38%

Delays beyond their control — 37%

Keeping up with demand — 23%

Unpredictability — 20% 

Unknowns — 15%

And it goes without saying that 25% are still concerned about the business impact of another COVID-19 wave. Yet only 33% are prepared for it.  

What are companies doing to deal with these dilemmas? Of those polled, 50% have invested in new technology or are expanding their existing tech stack this year.

In addition, 40% plan to rent warehouse space and/or trucks to prevent fulfillment issues. Specifically, 16% will rent both, while 16% will secure warehouse space and 9% will spring for trucks.  

On another front, 70% are prioritizing sustainability or planning to, and 23% are already putting it on the front burner and 47% will do so in the coming year.. But 85% do not anticipate adding EV trucks this year or next. 

SurveyMonkey surveyed 133 logistics professionals from June 7 to July 2, 2022. These respondents work in furniture and appliances, building supplies, medical, agriculture, auto parts and food, beverage and grocery distribution. 


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