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Tag: deliveries

DHL Suspends High-Value US Deliveries

Posted on by David Priestman

DHL Express has temporarily suspended deliveries of goods worth more than $800 to the United States, citing a “significant increase” in customs red tape linked to new tariff rules introduced by US President Donald Trump.

Starting Today (21st April 2025), the company will halt shipments from businesses in all countries to American consumers for packages above the $800 threshold, stating the move will remain in place “until further notice.” Deliveries between businesses (B2B) will continue but may also experience delays.

Previously, goods valued up to $2,500 could enter the US with minimal paperwork. However, tighter customs checks implemented alongside Trump’s recent tariffs have now lowered that threshold, triggering a spike in formal customs clearances.

DHL said this surge has strained operations:

“While we are working to scale up and manage this increase, shipments worth over $800, regardless of origin, may experience multi-day delays.”

Shipments valued under $800 will still be delivered and continue to face minimal customs scrutiny—for now. But additional changes are on the horizon. On 2 May, the White House is expected to close a loophole that allows low-value packages, particularly from China and Hong Kong, to enter the US without paying duties.

In a related move, Hongkong Post announced it is suspending all sea mail deliveries to the US and will stop accepting any parcels bound for the US starting 27 April. It described the US approach as “unreasonable, bullying and imposing tariffs abusively.”

As global shipping lanes become increasingly entangled with geopolitics and security concerns, logistics providers are facing new challenges in cross-border parcel delivery—particularly into the US.

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Digital twins help postal and logistics companies plan for the future

Posted on by David Priestman

Outside of fantasy novels, nobody has a crystal ball to see into the future. However, postal services and logistics companies are building digital twins to achieve just that. Powered by data-driven virtual models that can simulate real-world operations, digital twins are allowing the sector to predict the future and plan for it.

Alexandra Ballestrem, Key Account Director, and Roosmarijn Schopman, Proposition Manager at Prime Vision, explore how digital twins are providing unparallelled foresight in logistics operations.

Reducing uncertainty

Postal and logistics processes are beholden to a multitude of factors, many of which are outside the control of a business. With customer expectations regarding speed of delivery at an all-time high, maintaining service levels during operational shocks is a constant challenge, as nobody knows what’s coming next. Consequently, companies are looking for tools to mitigate uncertainty and assist in contingency planning.

Mature logistics operations are highly automated. Whenever a parcel or letter travels through a sorting centre, it is photographed, scanned and tracked by a wide array of equipment. This generates masses of data, which can be stored and analysed to offer insights into an operation. Increasingly, postal and logistics companies are using these data streams to build digital twins.

A digital twin is a virtual representation of a physical object, or in this case, a process. By feeding real-world data into bespoke mathematic models that accurately reflect operations, owners of a digital twin can simulate how changing parameters can affect their business. With the masses of data required to drive the system already available from existing automation equipment, a digital twin allows almost limitless experimentation with minimal risk. While no crystal ball, it enables businesses to conduct effective contingency planning, and possibly more.

Digital Postage Twins

Take, for example, an increase in parcel or letter volumes. The key question is, are existing processes flexible enough to effectively manage this higher volume between current facilities? If not, is investment in a new sorting centre, equipment or staff required? Using a digital twin, businesses can feed increased parcel and letter volumes into the models, testing operations to get an answer. A new sorting centre will require at least five years to offer return on investment (ROI), so having a data driven system to properly inform the decision is invaluable.

Unforeseen breakdowns are another event that can be modelled and mitigated by a digital twin. With postal services operating 20 to 80 hubs in a country depending on size, what would happen if one were to go down? This can be replicated in the digital twin and the effects observed. More than that, it allows businesses to proactively plan and strategize to keep downtime and delivery delays to a minimum. Using the simulation, operators can find the best way to spread volumes and reduce the impact, rather than carrying out a time-consuming postmortem after the event.

The virtual world exerting physical control

While these scenarios focus on sortation, digital twins have plenty more possibilities. Simulations can be carried out to test how to use available floorspace within a warehouse and discover new efficiencies. Companies using robots can replicate their entire fleet digitally and find ways to optimise movement within a facility. If the data is available, delivery vehicles can be included to predict how goods could travel between different sorting centres for processing.

With coverage over an entire operation, a digital twin can actively influence the physical world and open the door to dynamic sorting and self-organising logistics. By creating a virtual counterpart of letters, parcels and pallets, the digital twin can make automatic decisions to adjust pick-ups, inbound goods, sorting and outbound deliveries to improve the speed, quality and flexibility of logistics processes. As a result, users can improve service while lowering operating and capital expenditure.

A proven partner for digital twins

Accessing the benefits of a digital twin is no easy task. First of all, a business must record as many physical events as possible via equipment in its facility. This helps to build a complete data set and deliver accurate predictions. With data collected and stored, a knowledgeable expert must turn customer process parameters and factors into working mathematical models and software. An analytical dashboard is also required to present results.

 

Digital twins

Prime Vision is an expert in building digital twins from the ground up. Its computer vision systems, analytical software, data storage solutions and robotics are embedded in the sortation process from start to finish, providing customers in its install-base with the data required to build an accurate simulation. Its digital twins are even compatible with products from other vendors, ensuring widespread coverage. The company specialises in seamlessly integrating its automation products with existing customer infrastructure.

In all cases, Prime Vision can flexibly unite sporadic sources of data to build a functional and impactful digital twin. Its research and development engineers are adept at translating physical operations into working software models and providing an accurate digital representation of unique customer processes. This can be hosted within a customer environment or by Prime Vision, either at a premises or on the cloud.

For postal or logistics companies looking to take a proactive approach to contingency planning, a digital twin is essential to make the right predictions and decisions. By partnering with an expert like Prime Vision, these businesses have no need of a fortune teller to secure efficiency and future resilience.

More from Prime Vision:  https://primevision.com/the-letterverse-digital-twins-help-postal-and-logistics-companies-plan-for-the-future/

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Greener Farm to Fork Journey

Posted on by David Priestman

5G-technologies could deliver significant carbon savings across food and drink manufacturing from farm to fork, according to new economic modelling. The modelling reinforces the environmental benefits of 5G Standalone (5G SA), particularly for key industries in that are traditionally carbon intensive like manufacturing.

Technologies like Internet of Things (IoT) sensors and tracking systems can transform the way we manage food and drink across the manufacturing supply chain – from its origins on the farm, through to factory production sites and transporting the food on UK roads to our stores. The new modelling reveals that 5G technologies could save the food and drink supply chain 37 million tonnes of CO2 equivalent emissions between 2024 and 2035. That’s the same as removing 78,000 delivery trucks from UK roads.*

However, these efficiencies can only be achieved with the timely rollout of a 5G SA network. That is why, following completion of the proposed joint venture, Vodafone UK and Three UK have committed to investing £11 billion in the first 10 years as a combined business which will help deliver 99% of 5G Standalone population coverage by 2034. This critical infrastructure will deliver a far superior network that will allow us to build towards the UK’s digital future, faster and facilitate the innovations needed to support the UK on its Net Zero journey.

The modelling conducted by WPI Economics for Vodafone reveals the impact that these technologies can have on decarbonising the supply chain.

• In farming, 5G technologies, such as drones and sensors that monitor soil and crop conditions could improve yields and significantly reduce the food waste produced on farms. By 2035, this reduction in food waste can correspond to a total saving of carbon emissions equivalent to 6% of the UK’s greenhouse gas emissions in 2022.
• On the factory line, 5G-enabled manufacturing technologies like remote maintenance systems, which reduce machine downtime, plus IoT tracking systems, which reduce electricity consumption required for cooling and storing goods, could all contribute to an 11% reduction in CO2e emissions in manufacturing by 2035.
• When transporting goods by road, implementing 5G technologies, such as Vehicle-to-Everything to improve the fuel efficiency of Heavy Goods Vehicles (HGV), in the commercial distribution of food and drink could reduce HGV emissions by up to 54 MtCO2e. This equates to more than double the total UK HGV emissions of 2021.

Andrea Dona, Chief Network Officer, Vodafone UK, said: “We’re supporting many customers across the farm to fork supply chain to become more energy efficient through innovative technology like IoT and the Cloud. But we need the proper infrastructure to take it to the next level. 5G Standalone has the potential to transform the UK supply chain, smoothing operations for suppliers and reducing carbon emissions. Vodafone’s proposed combination with Three UK will enable us to invest £11bn over the next decade, reaching over 99% of the UK population with 5G Standalone by 2034 and helping the UK’s agricultural industry decarbonise sooner rather than later.”

A spokesperson from the Road Haulage Association (RHA), said: “The RHA is dedicated to supporting its members to help them sustainably reduce emissions in the road freight and logistics industry. We welcome Vodafone’s newly released research which finds that the implementation of 5G technologies could reduce greenhouse gas emissions in the sector by up to 44%. This year, the RHA launched the Net Zero forum which seeks to collaborate with other leading business voices for sharing best practices, technological advancements, and cutting-edge research related to sustainable transport, and we look forward to continuing to support our members by identifying new technology which will support them to decarbonise.”

In June, Vodafone launched the UK’s first Standalone network, 5G Ultra, creating one of the most technologically advanced network for customers.

Methodology

The estimated figures are based on analysis by WPI Economics using trusted data sources, including data from the Department for Energy Security & Net Zero, Department for Transport and the ONS, as well as academic literature. Overall benefits are calculated based on a Theory of Change flow, which breaks down the total effect into discrete effect channels identified through a literature review. Benefits coming from each channel are estimated and summed together (where applicable). The analysis presents emissions avoided between 2024 and 2035, assuming a staggered implementation of 5G-enabled solutions over time. The estimates are based on official government projections of CO2e emissions by industry, and the projected changes in sources of energy generation.
*Delivery trucks refers to Heavy Goods Vehicles (HGVs).

Sustainability in Retail Transportation Management

Posted on by David Priestman

In today’s retail landscape, sustainability is no longer just a buzzword – it’s a fundamental concern for consumers, that has an impact on retailers. The demand for eco-friendly products and environmentally responsible companies is on the rise. In fact, according to Descartes’ 2023 consumer sentiment study on home delivery sustainability, a sizable 41% of respondents indicated they regularly or always make purchasing decisions based upon the product or company’s environmental impact.

What is more, it’s no secret that freight transportation (i.e., over-the-road, ocean, rail and air) is one of the top causes of greenhouse gas emissions, representing 8% of global greenhouse gas emissions. Therefore, with an increasing spotlight on the environment, we wanted to know what companies were doing about transportation sustainability or not, and added it to Descartes 7th Annual Global Transportation Management Benchmark Study – the findings, of which, are useful to retailers.

To find out more, we divided transportation sustainability efforts into four categories, ranging from no action to a daily concern. The overall response showed that 31% of respondents indicated they did nothing, 19% reported on their transportation carbon footprint, 27% factored it into their strategic plans and 22% made sustainability a component of their daily transportation decisions.

In essence, we discovered that 50% of businesses are actively addressing sustainability in transportation, presenting an excellent opportunity not only to make a positive impact on the planet; but also to cater to a market hungry for sustainable choices. Chris Jones (pictured), EVP, Descartes explains more.

Taking this exploration further for retailers, we examined how management perceives the importance of transportation management and its correlation with company financial performance. We discovered that companies whose management regarded transportation as a competitive advantage (57%) were far more likely to take action compared to those who did not prioritise transportation management (48%). Similarly, in terms of financial performance, the numbers were compelling, with 58% of top performers taking action, contrasting with 44% of less successful companies. This then raises a question of retailers about the extent to which they can perceive how transportation could enable competitive advantage?

Additionally, differences in sustainability actions among businesses that recognise the value of transportation management and top financial performers, versus other respondents makes sense. In the benchmark study, we see these respondents more interested in strategies and actions that improve transportation management performance; and most transportation management improvement programs have a positive and measurable impact on the environment too – again, something which is important to consumers and, inadvertently, the retail sector at large.

Reducing CO2 footprint, fuel consumption and waste generated are all results of transportation management performance improvement programs that reduce distance per delivery, empty miles, and vehicle wait times and eliminate paper-based processes. So, if there is a perception that most sustainable transportation efforts result in less efficient supply chains, this needs correcting.

In fact, sustainable transportation programs are also an opportunity for organisations, including retailers, to capture more business. The home delivery sustainability study showed that consumers are more willing to buy from companies that can showcase sustainable supply chains, with 60% expressing a preference for environmentally-friendly delivery options. Equally important for B2B companies is the opportunity to gain more business from companies that are looking at their supply chains’ partners to help reduce Scope 3 Emissions, as defined by the United States Environmental Protection Agency and the Corporate Sustainability Reporting Directive (CSRD) initiated in January 2023. This standard requires more large businesses and SMEs that trade in the EU to conduct sustainability reporting to stricter standards from January 2024.

Conclusion

It’s clear, now more than ever, that retailers have a unique opportunity to distinguish themselves by embracing sustainability in their transportation management efforts. This not only meets regulatory requirements – but also aligns with the preferences of eco-conscious consumers and contributes to a greener, more sustainable future. As well as this, retailers who make this a priority will also simultaneously cut costs, boost customer satisfaction and grow their business. How many opportunities are there for retailers and businesses alike to create this kind of win, win, win, win situation?

Deliveries with Game-changing Precision

Posted on by David Priestman

what3words, the innovative global location technology company and DHL Parcel UK have announced a brand new element of their partnership. Customers, whether small businesses or large e-commerce players can add a what3words field at checkout to enable shoppers to specify exactly where they want their deliveries to go. Once entered at checkout, the what3words address is then seamlessly passed on to DHL Parcel UK so its couriers can find and navigate to delivery destinations with ease, no matter how hard they might be to find.

Last year, DHL Parcel UK announced that it had rolled out the what3words location technology to its UK Parcel App. This new integration represents an exciting milestone in the partnership and a huge opportunity for UK retailers to enhance the addressing information they capture from a customer at checkout.

In the UK, deliveries can be challenging. Addresses aren’t always accurate, street names are often duplicated, postcodes cover broad areas, and specific building entrances can be hard to find. And for new builds, it can take up to 6 months for the address to be registered. In fact, a quarter of people in the UK find that their full postal address doesn’t direct people, deliveries, or services exactly to their front door. Poor addressing can add difficulties for couriers too, and this is something what3words is perfectly positioned to solve.

The benefits of what3words technology will continue to be felt in many ways. Drivers can find delivery locations at the first attempt, so routes can be better optimised. This improves business efficiency, makes the job more enjoyable for couriers, and emissions are reduced in the last mile too.

Peter Fuller, CEO, DHL Parcel UK says: “The latest stage of our partnership with what3words really extends the benefits to more customers and consumers. It gives shoppers the convenience of being able to specify their exact delivery location at the point of check-out and gives retailers even more confidence that their goods will be received on time, without complication. It’s a smart, innovative solution that allows us to improve the quality of the service we offer even further.”

Chris Sheldrick, Co-founder and CEO of what3words adds: “what3words is now being used at critical points throughout DHL Parcel UK’s delivery infrastructure. This means that everyone, from a customer purchasing an item at checkout, right through to the courier can benefit from a precision address. It’s fantastic working with DHL Parcel UK – a true innovator in the space, adopting new technologies to maintain and evolve the world-renowned service that it provides.”

 

 

Christmas Returns: Begins Within Days

Posted on by David Priestman

Some eager gift-getters even start returning presents on Christmas Day! Festive gift-getters are wasting little time in returning their unwanted Christmas presents, according to new data from nShift, a global leader in parcel delivery management software.

According to the analysis, 28 December – dubbed “Returns Wednesday” – was the most popular day for people to begin the process of returning unwanted gifts in 2022. However, many consumers were even quicker off the mark. Some even began sending things back on Christmas Day itself.

Philipp Goldberg, Product Director for Returns at nShift said, “This is yet more evidence that when people shop online, they expect to be able to return products quickly and simply. When a retailer does not make their returns policy clear, or the process seems cumbersome, shoppers are more likely to abandon their purchase. This may be especially the case when they are buying a gift for someone else.”

Christmas Returns

nShift compiled these statistics by analyzing returns data from the last week of December 2022. By looking at which day of the week carrier companies were alerted of the need to collect an item, they were able to determine which days were the most popular for people to get the ball rolling. Wednesday 28th was the most popular day, with over a quarter of returns requests from the week generated during that day. This was closely followed by Thursday 29th and Tuesday 27th.

The full statistics are:

Date – % of the week’s returns data generated

Sunday 25 December (Christmas Day): 1%, Monday 26 December: 3.4%, Tuesday 27 December: 22%, Wednesday 28 December: 25.6%,Thursday 29 December: 22.3%,Friday 30 December:

19%, Saturday 31 December: 6.7%

Philipp Goldberg continues: “To ensure they increase conversions and keep customers coming back for more, retailers must offer a compelling returns policy and make it easy for both consumers and warehouses to operate. Digitizing the returns process can help make it accessible for the consumer and cut down on processing time.”

nShift’s returns solution helps ease the administrative burden while ensuring a smooth, friction-free journey for customers looking to return their orders. It enables customers to: Avoid handwritten return slips, Re-convert 30% of returns to exchanges, Keep customers up to date on return status, Work in a data-driven way and analyze returns in real-time, Always keep track of how many returns are en-route to the warehouse.

nShift compiled these statistics by analyzing returns data from the last week of December 2022. By looking at which day of the week carrier companies were alerted of the need to collect an item, they were able to determine which days were the most popular for people to get the ball rolling. Wednesday 28 was the most popular day, with over a quarter of returns requests from the week generated during that day. This was closely followed by Thursday 29 (22.3%) and Tuesday 27 (22%).

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