Middle-Mile Delivery Demystified – How Goods Move Behind the Scenes

Middle-mile delivery is also known as second-mile delivery. It involves transporting goods from the warehouse to the fulfillment center. Shipping of goods from the port or local hubs to the fulfillment center also comes under second-mile or middle-mile delivery. B2B shipping usually involves this type of delivery. With the growth in the number of online businesses, its demand has witnessed substantial growth. The middle-mile delivery market size was valued at USD 96.7 billion in 2023. It is expected to increase at a CAGR of over 7% between 2024 and 2032. This article provides a detailed overview of middle-mile delivery.

What Is Middle-Mile Delivery?

Middle-mile delivery bridges the gap between first-mile and last-mile delivery. Professionals handling this part of the supply chain process usually have to cover long distances. They pick up goods from ports or warehouses and deliver them to fulfillment centers via different modes, depending on factors such as client preferences and the distance to be covered. Timely and efficient delivery at this stage is necessary for ensuring efficiency at the next step.

Middle-mile logistics mostly involves the transportation of bulk material. Often, goods received from different first-mile sources are combined and forwarded for second-mile delivery. The professionals are trained to handle a large quantity of goods with care. As they reach fulfillment centers, they are carefully unloaded and sorted for last-mile delivery.

The rise of third-party logistics, increasing customer expectations, and advancements in technology are influencing second-mile deliveries.

Challenges in the Middle-Mile Logistics

A crucial part of the supply chain management, middle-mile logistics faces certain challenges such as:

Delay in Shipping

This is one of the top challenges that shipping companies face when transporting goods to remote regions, especially for less-than-truckload (LTL) shipments. The goods of different businesses are loaded into a single truck for LTL. Since the goods from multiple businesses need to be loaded, the task becomes time-consuming. A delay in delivery from even a single company can result in a delay, as the truck only moves when it receives all the packages. Thus, while LTL enables businesses to save on transportation costs, it often leads to delayed deliveries.

Port Congestion

Ports and docks often experience congestion due to the large number of shipments moving in and out. This causes difficulty in the movement of the shipments. When a driver cannot pick up the container within the given timeframe, he is required to pay demurrage charges. This adds to the expenditure.

Customs Clearance

Middle-mile delivery often involves shipping goods across borders for which customs clearance is needed. Shipments usually get stuck at this step. This happens due to various reasons, including missing or incorrect documentation and non-compliance with regulatory requirements. With shipments held up at this stage, businesses suffer a loss. Not only is their shipment returned, cancelled, or delayed, but they also incur detention and demurrage fees.

Staff Shortage

A shortage of skilled staff is another challenge in this field. Businesses struggle to find workers who can handle this crucial process efficiently. They often require hiring unskilled labour that needs to be trained thoroughly to carry out tasks such as loading, unloading, transportation, and coordination. Training, increasing business expenditure, and a lack of it can lead to mismanagement, resulting in loss.

High Freight Container Charges

Freight container charges are increasing due to a shortage of ocean containers and geopolitical tensions. Besides, if the empty container does not reach the port timely, it incurs detention fees. This adds to the overall cost of the supply chain.

Ways to Overcome Challenges in Middle-Mile Logistics

You must try to overcome the aforementioned challenges to ensure the smooth shipment movement and the timely arrival of goods. Here are a few tips to help in this regard:

Schedule the Pickup

It is recommended to book an appointment well in advance so that the goods can be picked up promptly. Going for a pickup without an appointment can result in a delay, especially during the peak season.

Collate Necessary Documents

The inability to produce necessary documents can result in issues during customs clearance. To avoid such hassle and delay, you must ensure that the documentation is complete. Proof of insurance, certificate of origin, bill of lading, port spending, commercial invoice, packing list, export and import certificates and declarations and transport invoice are some of the important documents. 

Comply with Regulatory Norms

It is essential to learn about the regulatory standards and comply with them. This makes the customs clearance process smooth and quick.

Use Advanced Tools and Resources

To ensure efficiency, it is essential to utilise advanced digital tools and resources. Adopt a smart system to track shipments in real-time. This gives a clear idea about the halt time at the ports and elsewhere. Necessary action can thus be taken to reduce bottlenecks in the logistics process. Likewise, investing in demand forecasting tools also increases competence. These tools collate and assess historical data to predict future demand. Thus, you must stock adequate goods and fulfil consumer demand.

Maintain Adequate Manpower

Ensuring adequate manpower is necessary to handle the various second-mile activities with ease. Businesses often find it difficult to handle shipments during peak season due to a lack of manpower. It is crucial to make arrangements for such weeks or months to prevent supply chain disruptions. They must also be trained thoroughly to reduce loading and unloading time, quickening the process.

Classification of Goods

Goods must be accurately described and classified for shipping. Packages must have these details duly fixed on them to enable careful handling. Moreover, customs officials will have a clear idea of the goods and can levy appropriate tariffs accordingly.

Using Shiprocket Quick to Minimise Middle-Mile Hassles

Managing the middle mile can be challenging, but it’s easier with Shiprocket Quick. We offer a smart solution to simplify this critical stage of delivery. We have a team of experts who are well-versed in the process involved in middle-mile logistics. We ensure that the goods are loaded carefully from your warehouse or local hub and transported swiftly to the fulfillment centers. With the use of advanced tools, we optimise the routes and track the shipment’s movement. Any issues arising on the way are taken care of promptly. The best part is that our platform can be integrated easily with your existing system.

Our team members coordinate effectively with others involved in the supply chain process to avoid any gaps or issues. We have earned a reputation for offering high-quality services at a reasonable price.

Conclusion

Middle-mile delivery involves the journey of goods from a supplier’s warehouse or manufacturing unit to a fulfillment center. It is an essential step between the first-mile and last-mile delivery. It plays a vital part in ensuring timely deliveries. It involves transporting goods in bulk. Businesses use LTL or FTL service to accomplish the task. Other modes of transportation may also be used. The demand for middle-mile delivery is on the rise owing to the increasing number of eCommerce businesses. Companies are investing in it to maintain a smooth flow of goods and ensure timely deliveries. Choose Shiprocket Quick to improve speed and accuracy at this stage.