The collapse of City Link triggered an influx of additional volumes into the large parcels market, Panther Warehousing MD Colin McCarthy has said.
The availability of product has driven Panther’s Solo delivery service, which was launched in January 2016. The service involves an individual courier delivering ugly freight that doesn’t require another pair of hands.
McCarthy told Motortransport.co.uk: “Since the demise of City Link, there’s so much product in the market, which the parcel networks can’t move because it doesn’t fit through their sorters.
“But you have to charge the right price. City Link was charging £5. We charge more, but people aren’t being turned off by that because they want to move the product.”
The company makes between 30,000 and 40,000 Solo deliveries a month, but McCarthy said there is demand for more.
“We shut the door last October. We could have been at 60,000 by now. But we don’t have the infrastructure to support that type of growth.”
Panther is also set to open two new sites this year to support ongoing growth across the group. The two-man delivery company will open cross-dock depots in Gateshead and Preston in March; the latter will be its first in the North East.
“We’re keen to keep our reputation for service. If you go above a network capacity of 72%, it’s time to start looking for your next opportunity,” McCarthy said.
He added it would like to open a third site in London, but is struggling to find a suitable site amid a shortage of available properties.
