Ready for peak?

Fall is in full swing, and for supply chains that means it will soon be time to test whether or not all those peak-shipping season preparations of the past few months were up to snuff.

This will be felt acutely in the final mile, as holiday orders make their way from distribution centers to doorsteps across the country. Last-mile delivery is often considered the most difficult part of the logistics journey, and it has been getting harder over the past decade thanks to accelerating e-commerce orders, labor challenges in both warehousing and transportation, and rising expectations for next-day and same-day delivery. Another factor is the high cost of last-mile delivery, which can account for more than 40% of total delivery costs, according to some industry estimates.

Shippers and carriers are facing additional pressure this year, with many saying last-mile delivery costs are outpacing revenues—and that rising fuel and labor costs are at the heart of the problem. A recent survey of supply chain leaders by last-mile delivery platform FarEye, for instance, found that 70% of last-mile operators ranked fuel among their biggest cost pressures, with more than 50% citing labor issues. The results appear in the company’s “Eye on the Last Mile America 2026” report, which surveyed more than 500 delivery operators from across the country.

This story was originally published by DC Velocity. Read the full story at DC Velocity →