Looming Freight Crisis For Xmas In Australia

Discounting has already commenced within Australia’s online hamper industry due to uncertainties over delivery times the week before Christmas. With Christmas Day falling on Tuesday this year, retailers are becoming uncertain what the ‘cut-off’ period should be for xmas deliveries based on last year’s delivery failure by Australia Post and other freight companies. 

In 2011 Christmas was on the Sunday which made deliveries straightforward as deliveries after Friday are unlikely. Having xmas landing on a Tuesday though may lead to some companies assuming that they will get freight through on the Monday. 

It can even extend to discounting. Manning suggests retailers discount in November, when they are most competing against online retailers. Then when the window for delivery from a website closes, shops can put their prices back up. “Why wouldn’t a retailer actually [offer] their most competitive prices very soon,” he says. “Then they can move them up and up. That way you’re going to extract a premium from those last-minute shoppers when you can’t get anything sent to you.” 

Christmas Day falls on a Tuesday in 2012. With a whole weekend and a frantic Christmas Eve Monday to capitalise on, a premium could be just what struggling retailers need. 

The delivery of Christmas Hampers is the most seasonal industry within Australia. In preparing for the Christmas rush the Hamper Emporium Chief Operator, Emily McWaters, warns customers to not only order early but request Delivery well before Christmas Eve: “Australia is a large and sparsely populated country and in the week of Christmas the parcel network moves more than 3 times its normal volumes, at The hamper Emporium we implore customers to request pre- Christmas eve delivery to avoid any disappointing freight delays”. 

After a difficult Christmas period last year Australia Post and other freight companies have invested 100s of millions of dollars into new technology, 24 hour lockers, weekend deliveries and extended pick-up points, like Toll’s arrangement with newsagents. Australian logistic providers are fast catching up to the US and European online delivery networks but still has some work to do. 

With Australian’s expected to spend a record A$8bn on online Christmas Gifts this Christmas it is vital that the freight networks can cope, According to Ms McWaters ‘the national postal service Australia Post has really taken up the online challenge and with their significant investment in IT and associated infrastructure Australian’s can expect a much better delivery performance this year, but order early to avoid disappointment!”