The post and parcels industry has said the impending Royal Mail strike could force customers to rethink their delivery options as rival operators prepare for disruption to their final-mile deliveries.
Patrick Gallagher, CEO at same-day carrier CitySprint, said retailers have been gearing up for potential strike action since the ballot by the Communication Workers Union (CWU) was revealed in September.
“No network in the UK has the domestic delivery reach or capability of the Royal Mail, underlining the dependency of the UK supply chain on one company.
“Their biggest nightmare at this point is that disruption spills over beyond 4 November and great effort will now be invested to limit the damage to retailers’ brand during this period,” he said.
He added that no operator will be able to pick up the pieces entirely and believes that there is no ‘Plan B’ if there is a backlog in volumes.
“In the long term this may even force some retailers to rethink their over reliance on the Royal Mail,” Gallagher added.
Petar Cvetkovic, CEO at DX Group, said the company has been talking to its customers about the possibility of a strike, which he believes will put more pressure on retailers as they prepare for the Christmas peak. He advised retailers to forecast volumes as accurately as possible.
He said: “Businesses will also need to consider how capacity issues brought on by strike action will affect the logistics market, and should be engaging with their suppliers and partners early on in order to reserve the capacity that they’ll need for their customers’ deliveries.”
A spokeswoman for rival TNT Post, which is planning to roll-out its own nationwide final-mile network, said: "We will ensure we work closely with our clients to minimise the impact of this action on the delivery of their mail. We hope that a resolution can be reached between Royal Mail and the unions before actual strike action takes place.”
Yesterday (16 October), the CWU said a 24-hour strike at the post and parcel operator will take place if an agreement is not reached. It is also planning to ballot for a boycott of competitors’ final-mile deliveries.
