June 2020 – Services Outlook

We are optomistic June will be a seminal month in opening the pathways for the gradual improvement of services. We expect improvements to accelerate during the summer ready for an expected larger than normal peak in Q4.

Europe has commenced easing restrictions for workers and businesses. The UK and European governments in consultation with industry bodies have published guidelines for the safe operation of services (for numerous industry sectors) to assist businesses re-open. Logistics companies including postal services which have maintained a basic level of service since February have already indicated an expansion of services (geo-regions), the reducing or lifting of some surcharges and are reviewing the options and timing to progressively re-instate service standards and guarantees in the current quarter.

The logistics industry outlook for long-haul non-European destinations are to a great extent anxiously and constantly looking to the aviation industry’s plans of which look more promising through June and into July. Capacity to many popular destinations remains challenging both on services and costs. Increasing amounts of traffic have been up-streamed to express to ensure a level of movement. This results in postal traffic being sub-streamed, quarantined, under suspension or unavailable with little to no notice. IMX dynamically manages its demands for its clients daily and has no mail or tracked packages on hold. The additional costs for these alternate options for the greater part have been absorbed by IMX – and we expect some of the higher charges to progressively reduce during June. That is to say long-haul services are not anywhere near an acceptable level and nor will they be until the aviation industry expands routes and capacity.

IMX to assist with providing a level of transparency on services is looking to develop a Service Dashboard, first for tracked services in Europe, available on both the IMX and Logicon websites and for clients to view when they log-into any one of our Cloud portals. The service dasboard will be expanded to rest of world destinations and for non-tracked (postal) services in due course. We would hope this will assist with proactive and reactive management of customer service requirements as well as provide a level of comfort to companies wishing to re-explore or explore (new) distant markets.

Needless to say the immediate outlook remains challenging.

IMX wishes to thank its clients, suppliers and staff that continue to successfuly manage demands in what at times can prove to be very difficult.

the IMX Group