Logistics management specialist ITD Global has pointed to parcel consolidation as a method for keeping delivery costs down, amid predictions that shipping volumes will increase by 59% within five years.
It said e-commerce platform SellersCommerce found that 2.7bn people shopped online last year and this was likely to rise to 2.77bn in 2025.
ITD also cited research by Statista, which revealed that global parcel shipping volumes amounted to over 161 billion parcels in 2022 and by 2027 it was expected to grow by 59% to 256 billion parcels shipped.
Jonny Mocton, ITD Global chief executive, said these significant increases in volumes were prompting retailers and merchants to question how they would keep up with the demand for online deliveries.
“We believe that the answer lies in parcel consolidation - a practical and efficient solution for international shipping that can significantly reduce delivery costs and streamline supply chain operations,” he said.
“Managing shipping costs can be a formidable challenge for merchants and retailers. Parcel consolidation enables businesses to import and export goods at a lower cost by combining multiple smaller shipments into a single, larger consignment, as well as improving efficiencies, and reducing the environmental impact of deliveries.”
However, although Mocton said fewer, larger shipments translated into more predictable delivery schedules, he cautioned that consolidation also brought with it challenges:
“The process can be complex, time consuming and require a great deal of planning,” he explained.
“In some cases, consolidation can hinder the speed of transportation of urgent items, as the cargo needs to be completely consolidated to move forward.
“Different products may require different handling and storage conditions, and with multiple items combined, there are potential chances of damage or even loss of items.”
ITD Global claimed it could save clients “upwards of 30%” by adopting consolidation methods via its Shenzhen warehouse operation in China and that it helped simplify their logistics and enable businesses to reduce their carbon emissions.
“In an era where shipping expenses are on the rise, adopting parcel consolidation could be a strategic move for merchants and retailers to maintain operational profitability and sustainability,” Mocton added.