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Financial Costs and Risks Faced by a Courier Company

The continuing popularity of online shopping means there are more demands on courier services than ever before. As a courier working for an ecommerce company there are many unforeseen financial costs and risks. From things like the changes in currency values when shipping overseas to extra fuel surcharges and fierce competition from other couriers. Here are the top financial costs and risks faced by a courier company:


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Same and Next Day Delivery

With so many ecommerce businesses introducing more and more convenient delivery options, it’s become harder than ever for couriers to keep up. With a number of many different courier companies available to choose from, striking the balance between offering the best services and the cheapest priced deliveries is difficult and can be costly. This often means couriers are pushed to the limit to deliver a vast number of parcels in a short space of time.

Currency values

Changing currency values mean that sometimes it can cost a courier service more than anticipated when delivering parcels overseas. Depreciation and exchange rate fluctuations mean that it can sometimes be hard to estimate how much or how little a job might cost in total which means this can often leave room for a courier service to lose out.

Fuel surcharges

As is known, a courier company would not be able to function without the trucking companies (head to for instance) that can provide the vehicles that are used to deliver the goods safely to the right place. However, with all the benefits come the fuel charges. Fuel surcharges are another huge cost for courier services. Some companies charge customers extra to account for fuel surcharges as they take into account the variation on fuel charges across the country, and this would especially be the case for the various interstate couriers you can find around the world. Fuel surcharges are calculated by the government and worked out at an average price for the country. As one of the highest financial costs for a courier company fuel charges really do add up that’s why so many companies charge extra to account for this.

Congestion charges

Congestion charges which apply in busy areas are a financial cost courier services need to consider. In areas like London where the congestion charge applies in central zones it can cost up to 11.50 per day extra than in areas on the outside. For huge delivery companies who deliver thousands of parcels a day this is a huge financial cost.

Delivery companies have a number of financial costs and risks that are further intensified by the demands placed on them by the popularity of online shopping. With more pressure on delivery companies to compete with each other than ever before these financial costs and potential risks all need to be considered before choosing a courier service to work with your business.