Shifting to night-time logistics might help offset the steep economic costs being incurred by logistics and transport operators – expenses which might need to be transferred onto the consumer – according to the Chief Executive Officer of Express Trailers, Franco Azzopardi.
“The economic costs of congestion are becoming too high especially as e-commerce becomes increasingly more popular. Whilst higher demand means a bigger load on logistics operators, more logistics operations mean more traffic and loss in terms of fuel and man-hours. It is high time to assess the possibility of night operations,” he said.
He explained that the final part of the delivery process – the so-called, last mile – is the costliest, due to increasing congestion, amongst other issues, and underlined the need for a solution to minimise outgoings. For several years, many countries have been taking interest in this idea of off-peak hour delivery including night-time operations as an effective solution to shift traffic and ease congestion during the day,” Mr Azzopardi continued.
Several pilot programs abroad have attested to “the effectiveness of such initiatives”, he asserted, going on to say that in New York, the economic benefits of night-time deliveries were estimated to have reached around $193 million a year.
“It is becoming increasingly harder for transport and logistics operators to operate and for the general community to remain unaffected by operations like ours which we acknowledge to be a burden on the road. It is also a fact that people are struggling with the traffic situation which is making life more frustrating and leading to a lot of idle time and loss of productivity. I truly believe that as logistics operator, we can strike an efficient and cost-effective solution,” the CEO added.
“The focus will need to be put on encouraging retailers to embrace this important shift and be an active part of the solution. A consensus between the main stakeholders such as government entities, retailers, logistics operators, citizens and residents in delivery zones could help lead to a collaborative approach to this problem,” he continued, announcing the firm’s decision to hire economics graduate Martina Vella, who wrote her thesis on stakeholders’ support for off-peak deliveries in Malta.
“I am happy to now also have Martina joining my office as my personal assistant and research support. I am sure she will be adding further to our thought leadership,” Mr Azzopardi underlined.
On her end, Ms Vella said research showed that “the main problem with introducing this scheme is the change in culture needed,” arguing that while the proposition is a studied, tried, and tested solution, there are still several challenges that will need to be taken into consideration to be able to introduce night-operations.
“The challenges outlined in various studies and experienced in real terms have always centred round four main aspects namely noise, access restrictions, receivers participation and carriers participation. To discuss the best way forward, all stakeholders must be involved and encouraged to participate, and not forced to comply,” she said.
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