Surge pricing on shipping during Black Friday could significantly impact the profits of UK warehousing and logistics firms. Recent data shows that nearly a third of supply chain businesses experienced rising carrier costs in November last year, with some reporting increases of up to 25% during Black Friday Week. These costs rose from an average of £3.50 to £4.37 per item, driven by peak season surcharges imposed by carriers from mid-November to early January.

The rising costs, coupled with consumer expectations for free or low-cost shipping, are forcing retailers and fulfilment companies to absorb the increases, squeezing their margins. Industry leaders are calling for greater collaboration with carriers to manage price pressures sustainably. Some logistics providers negotiate early to mitigate surcharges and ensure smooth operations during the busiest e-commerce period.

In addition to rising costs, seasonal staffing shortages and operational challenges are major concerns for supply chain firms. Over 90% rely on temporary staff to manage increased demand, but 18% report difficulties filling positions. Despite this, order volumes are expected to rise again this year, following a 17% increase in 2023. Efficient stock and order management remain top priorities, with many firms turning to technology to streamline processes and reduce errors.

Experts urge businesses to invest in automation and technology to handle peak season surges. By integrating order processing, inventory management, and dispatch systems, firms can improve efficiency and manage rising demands while reducing reliance on manual labour. Early preparation and robust tech solutions are vital to meeting consumer expectations and navigating the challenges of peak trading periods.