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One of the best parts of attending the 2026 Final Mile Forum is where it takes you. Austin is not just the backdrop for FMF26, it is part of the experience. Known for its bold flavors, creative chefs, and laid-back vibe, Austin offers a food scene that rewards curiosity and conversation.
Whether you are grabbing a quick bite or hosting a client dinner, eating like a local is the perfect way to extend your FMF26 connections beyond the conference floor.
No visit to Austin is complete without barbecue. Locals take their brisket seriously, and many spots sell out early. Expect tender meat, simple sides, and lines that move faster than you think. Barbecue joints are casual by design, making them great places to continue conversations sparked at FMF26 sessions.
Pro tip: Go early and do not overthink your order. Brisket and sausage are always safe bets.
Austin’s food truck scene is one of the most vibrant in the country. From tacos and burgers to global flavors and late-night comfort food, food trucks are everywhere and full of personality.
These casual settings are ideal for informal networking. Grab a few colleagues, try something new, and let the relaxed environment do the rest. Some of the best ideas and relationships are built over shared meals without an agenda.
Tex-Mex is part of Austin’s identity. Think fresh tortillas, queso that disappears fast, and margaritas that encourage longer conversations. Whether you choose a classic neighborhood spot or a modern take on the cuisine, Tex-Mex meals are social by nature.
They are perfect for small group dinners where connection matters just as much as what is on the plate.
Austin’s culinary history is rich with restaurants that define the city’s character, from historic breakfasts to classic burgers and celebrated barbecue. Austin’s commitment to local ingredients and creative menus shines. These spots reflect the city’s innovative spirit and pair well with thoughtful discussions about growth, leadership, and the future of the final mile industry.
These iconic establishments reflect the breadth of Austin’s food culture and make for great stops around FMF26 sessions. If you are hosting a sponsor or meeting with peers, these restaurants strike the right balance between polished and approachable.
Eating like a local is not just about great meals. It is about creating shared moments that turn introductions into real relationships. Austin’s food scene encourages you to slow down, connect, and enjoy the experience together.
At FMF26, connection is the new currency. Let Austin’s flavors help you invest wisely.
Ready to join us in Austin? Register today!
The Final Mile Forum is more than an annual event. It’s a gathering of leaders, innovators, and partners who shape the future of last-mile delivery. FMF26, happening February 18–20 at the Austin Downtown Marriott, brings together a community where connection is the new currency and where the relationships you build can elevate your business long after the conference ends.
Whether you’re a seasoned attendee or joining us for the first time, a little preparation goes a long way. Here are practical, high-impact tips to help you get the most value from your time at this year’s Final Mile Forum.
FMF26 is packed with sessions, panels, networking events, and exhibitor opportunities. Reviewing the agenda before you arrive helps you stay focused and intentional. Identify:
• Sessions that align with your company’s goals
• Speakers you want to learn from
• Times when you can explore the exhibit hall
• Moments to recharge so you can stay fully engaged
A clear plan helps you make smarter decisions onsite while still leaving room for spontaneous conversations that often become the most rewarding part of the Final Mile Forum.
The FMF26 exhibit hall is one of the most valuable spaces at the conference. It’s where new tools, technologies, and partnerships come to life. Don’t just browse. Engage.
• Ask exhibitors what business challenges their solutions help solve
• Look for partners that can strengthen your service offerings
• Share your operational goals so exhibitors can match their insights to your needs
Remember, this is a community-driven event. Every exhibitor is here because they serve your industry’s challenges, growth, and evolution.
FMF26 is built on the idea that who you know is how you grow. Before arriving in Austin, make a short list:
• People you want to reconnect with
• New partners or peers you’d like to meet
• Companies you want to learn more about
Make a point to introduce yourself, ask questions, and exchange contact information. Even a brief interaction can lead to long-term partnerships. In the final mile world, relationships build ROI, and the Final Mile Forum is the ideal place to invest in them.
This year’s event is in the heart of downtown Austin, one of the country’s most vibrant and innovative cities. Use the surroundings to maximize your experience:
• Host a coffee chat with a new connection at a local café
• Explore Austin’s food scene after sessions wrap
• Take a walk around Lady Bird Lake or South Congress to reset before another full day
Austin’s creativity and energy are the perfect setting for fresh ideas and dynamic conversations.
FMF26 is interactive by design. During sessions, panels, and discussions:
• Ask questions
• Share your perspective
• Provide insights from your company’s experience
You play a role in shaping the event’s value. The more you engage, the more you’ll take away.
Your FMF26 experience doesn’t end when you leave Austin. Strengthen new connections by following up within a few days:
• Send a brief note or message
• Share a resource or idea you discussed
• Offer to continue the conversation
This simple step turns quick introductions into lasting business relationships.
Once you’re home, share what you learned. Consider:
• A short team presentation
• A recap email
• Recommended next steps based on event insights
FMF26 can spark new ideas, but real transformation happens when you bring those ideas back to your organization.
The Final Mile Forum is a unique space where industry knowledge, innovation, and relationships intersect. It’s where leaders challenge assumptions, explore new solutions, and build the kind of partnerships that push our industry forward.
By preparing with intention, showing up with curiosity, and engaging fully, you’ll walk away from FMF26 not just informed but inspired.
Registration is open now for the 2026 Final Mile Forum, taking place February 18–20 in Austin. Early bird discounts end December 31, 2025, and discounted flights and hotel rooms are available through the CLDA event block.
Secure your spot today and make FMF26 the most impactful final mile forum of your year.
What are last mile carrier trends for 2026 and beyond? Dramatic growth in demand for same-day and next-day, rising expenses, increased use of AI and the need for systems that allow shippers, drivers and customers to share real-time data.
Those were some of the observations of Stephane Gagne, VP of Products at FarEye. The company recently took a deep dive into the last mile, producing a report, Eye on the Last Mile 5.0, based on a survey of senior industry professionals across 500+ organizations nationwide. Respondents include C-suite executives, directors, general managers, and departmental heads responsible for key areas such as transportation, operations, technology, procurement, and compliance.
He shared his thoughts on the implications of the report for those involved in the last mile in an interview with “Thinking Outside the Box.”
Gagne summarized the big takeaways from the report this way:
Same-day delivery is becoming standard, not premium. The sector is expected to grow from 27% to 35% by 2027. Carrier networks must be built around speed and proximity, using smaller fulfillment hubs near customers. AI-driven capacity pooling across carriers and increased automation in dispatch and routing will allow logistics companies to absorb increased demand more cost-effectively.
Carriers are facing escalating costs that are not being matched by revenue per delivery. Expenses—from fleet management to subcontractor fees—are rising quickly. Gagne noted that route density, failed deliveries, and inefficiencies contribute to higher costs.
He advised carriers to look to these solutions:
“Reliability is the new loyalty,” Gagne pointed out. “It’s just not an emotional reality. It’s a cost reality. If you’re on time, you reduce fail. The cost of a failed delivery can range from three to six times the cost of the original delivery. If a carrier is reliable, they make shippers’ customers happier and lower the cost of delivery.”
He pointed out that consumers will lose trust in a shipper’s products if they don’t meet expectations for on-time, accurate delivery. And that has a measurable impact on their loyalty and interest in purchasing from those brands again.
Consumers expect transparency from order placement to delivery. That means carriers must use data to their benefit. They should adopt API-first strategies and use predictive visibility solutions powered by clean, real-time data. The new industry standard has shifted from basic “track and trace” to “sense and respond.” Sense and respond is all about adopting systems that monitor and interpret data signals, such as traffic and weather, to help carriers deliver highly accurate ETAs. “These systems take all the data and, based on an algorithm … create predictive patterns to …come up with more accurate predictions of the future,” he said.
Route inefficiency drives up costs. AI-powered route optimization considers the entire ecosystem. It factors in traffic, time windows, and historical service times. This ultimately leads to significant savings.
Gagne again brought up the idea of dynamic pricing. “Instead of having fixed contracts that cannot be adjusted over time… carriers should offer fixed rates that are adjusted based on density, the number of deliveries and other variable conditions,” he suggested. “The dynamic pricing model is a way to better adjust to the rising costs that we’re all seeing. By replacing static service-time estimates with dynamic, data-driven routing models, carriers can reduce deviations by up to 60% and unlock 7-15% in cost savings. This means an increase in both the bottom line and customer satisfaction.”
About 60% of consumers are willing to pay more for speedy, convenient delivery.
“Some consumers recognize the value of convenience and accuracy,” Gagne pointed out. “There’s an opportunity there to allow them to choose from premium to economy delivery options,” he pointed out. “For example, if a consumer paid $5,000 for a ring, they may want to pay a premium, so it’s delivered at a specific time and doesn’t stay outside their door for three hours. The same goes for appliances. Here, the consumer wants the driver to enter their home and not only deliver the product but also unpack and install it. If the customer wants additional services or guaranteed same-day delivery, they can decide whether or not to pay a premium for them. Not everybody would be willing to do that. There are still price-sensitive customers, and carriers need to continue catering to them. But there are a bunch of people who will say, ‘My time is valuable, and I’m willing to pay a premium.’ Carriers should give them the option to select from economy, next-day, or same-day.” He pointed out that those who choose to pay for premium services will demand higher accuracy. Carriers will need to be able to deliver on their promised timelines or risk losing trust.
AI is increasingly at the heart of last-mile logistics, from dynamic crowd optimization and route planning to touchless communication for drivers. Generative AI is replacing manual driver interactions, enabling hands-free workflows and more proactive business systems. Companies adopting these capabilities gain efficiency, lower costs, and set themselves years ahead of competitors.
FarEye will introduce a new voice-activated app for drivers that reduces phone-related distractions while driving. “It’s a generative AI interface that makes sure the driver has two hands on the wheel or has two hands to perform a task instead of constantly interacting with their two thumbs on their phone,” he says. He expects the new app to be available next year.
Adoption of AI is a must for carriers, but Gagne points out that it takes time for team members to trust these systems. “Those integrating these capabilities now are giving themselves a two- to three-year head start on their competition. They will help their bottom lines by reducing costs and making their business more efficient,” he said.
That said, he points out that integrating AI into the hearts and minds of those in carrier companies won’t happen overnight. People within those companies must become comfortable with what these systems can do. “They need to understand the logic of those algorithms to be able to trust them,” he says. “That process can take anywhere from three weeks to three months for people to believe in the capabilities of those systems. And then, very slowly, trust will install itself. People will let go of some of their concerns and allow the systems to run on their own. Of course, they’ll always want to set some guardrails, constraints or limitations so that they can be automatically alerted, allowing them to intervene.”
Gagne concluded his interview with these tips for last mile carrier trends for 2026::
He forecasted that these strategies would determine which companies thrive in a last-mile landscape that will continue to transform every day.
***
Want to dig deeper into FarEye’s recent research and the last mile carrier trends for 2026? You’ll find the full report here. You can also reach out to the team.
Before attendees arrive in Austin for FMF26, we want to give our community a glimpse into the city that will host the industry’s premier Austin final mile conference February 18–20. Understanding the spirit of a destination helps set the tone for meaningful conversations and stronger connections, and Austin is a place where history, innovation, and culture all come together. This look at Austin’s story offers a sense of what makes the city special and why it’s the perfect backdrop for the relationships and growth that define the Final Mile Forum.
Austin’s rise from a quiet riverside settlement to one of the nation’s most dynamic innovation hubs is a story rooted in resilience and creativity. It’s a city known for big ideas, bold thinking, and a culture that fuels collaboration. As the 2026 Final Mile Forum heads to the Austin Downtown Marriott, it’s the perfect opportunity to explore the history, personality, and fun facts that make this destination unforgettable.
Long before Austin became the thriving capital we know today, the region was home to Indigenous peoples including the Tonkawa, Comanche, and Lipan Apache. They settled along the Colorado River, drawn to the natural springs and abundant resources of the area.
In the 1830s, settlers arrived and founded a small community called Waterloo. Its scenic hills and central location quickly drew the attention of leaders of the Republic of Texas, who selected it as the new capital in 1839. The town was renamed Austin in honor of Stephen F. Austin, the Father of Texas. Even then, the area’s promise was clear. It was a place built for new beginnings and steady growth.
As Austin grew throughout the nineteenth century, it took shape around Congress Avenue and what would become the downtown core. The Texas State Capitol, completed in 1888 and still one of the most iconic buildings in Texas, symbolized the city’s rising prominence. Its pink granite façade and commanding presence highlighted Austin’s role as the political heart of Texas.
Even as railroads expanded and commerce grew, Austin developed a personality all its own. Its creative spirit, independent thinking, and open-minded culture became defining elements of the city’s identity.
Today, Austin is known for its booming tech economy, but music remains one of its strongest cultural pillars. The roots of Austin’s music scene stretch back to the early twentieth century, but it was the 1970s that truly put the city on the map. Venues like the Armadillo World Headquarters helped build a thriving environment for live performance, fostering community and creativity among musicians and fans.
By the early 1990s, Austin had more live music venues per capita than any other city in the country. It earned the title Live Music Capital of the World, a name that still shapes the city’s energy today. Visitors can find music playing in coffee shops, bars, restaurants, outdoor stages, and iconic venues every night of the week.
For FMF26 attendees, that means there’s no shortage of spots to explore after a day of sessions, conversations, and networking.
Austin’s evolution into a global tech and innovation powerhouse is one of the city’s most remarkable transformations. The phrase Silicon Hills first emerged in the 1990s as established and emerging tech companies began planting roots across the region. Today, Austin is home to leaders in software, logistics, energy, and advanced manufacturing. It regularly ranks among the top U.S. cities for startups and business growth.
The city is built on innovation and forward thinking, offering a natural backdrop for conversations about logistics, technology, customer expectations, and the future of last-mile delivery. FMF26 attendees will find themselves surrounded by a city that shares their passion for efficiency, ingenuity, and continuous improvement.
One of Austin’s most enduring traits is its people. The city thrives on diversity, creativity, and collaboration. Its unofficial slogan, Keep Austin Weird, started as a grassroots effort to support small businesses. It has since become a rallying cry that celebrates individuality, authenticity, and local pride.
That same spirit of community reflects the values at the heart of FMF26. Connection is the new currency, and Austin is a place where conversations spark ideas, where partnerships grow naturally, and where people discover new ways to elevate their work.
Austin’s culinary scene is a standout in its own right. From food trucks offering global flavors to legendary barbecue joints like Franklin Barbecue, the city invites visitors to explore, taste, and enjoy. Tex-Mex, tacos, southern comfort food, craft coffee, local breweries, and upscale dining all blend into one unforgettable experience.
But food is just the beginning. Austin’s cultural landscape is filled with public art, murals, museums, outdoor installations, and creative neighborhoods. Visitors can explore the Blanton Museum of Art, walk the trails at Lady Bird Lake, relax in Zilker Park, or wander through the shops and restaurants of South Congress.
And for anyone looking to truly experience Austin, don’t miss the famous Congress Avenue Bridge bat flight at sunset, one of the most unique natural scenes in the country.
Here are a few memorable facts to bring up during a coffee break or networking session at FMF26:
• Austin is home to the largest urban bat colony in North America, with over 1.5 million bats living under the Congress Avenue Bridge.
• The Texas State Capitol is actually taller than the U.S. Capitol in Washington, D.C.
• Austin was the first city in Texas to launch curbside composting.
• Barton Springs Pool is fed entirely by natural springs and stays around 68–70 degrees year-round.
• Austin FC, the city’s MLS team, has one of the most passionate fan communities in the league.
• Austin’s food truck culture is one of the biggest in the world.
• South by Southwest, now a global gathering for film, tech, and music, began as a small local event.
Each fact adds another layer to the story of a city that’s both dynamic and deeply rooted in creativity.
Hosting the 2026 Final Mile Forum in Austin makes perfect sense. The city mirrors the forward momentum of the final mile industry and represents the power of community. Austin fosters innovation, celebrates collaboration, and thrives on meaningful connection. It’s a place where who you know is how you grow, and where relationships build ROI.
As the industry gathers to discuss trends, tackle challenges, share success stories, and build new partnerships, Austin provides the ideal backdrop. Attendees will leave inspired by the city, by the people they meet, and by the ideas exchanged throughout the event.
FMF26 takes place February 18–20, 2026 at the Austin Downtown Marriott. Registration is open now, and early bird discounts run through December 31, 2025. Discounted hotel rooms and flights from Delta, Southwest, and United Airlines are also available.
Make Austin part of your story. Register today for FMF26 and join us at the premier Austin final mile conference where new connections fuel lasting growth.
The final mile is changing fast and staying ahead requires more than hard work and operational know-how. It takes insight, collaboration, and the ability to learn from the leaders who are navigating the same challenges you are.
That’s why the 2026 Final Mile Forum (FMF26) is built around one core idea:
Connection is the New Currency.
This year’s program brings together shippers, carriers, and solution partners for three days of education and networking that’s practical, forward-looking, and grounded in real-world experience. Whether you’re focused on growth, optimization, or delivering exceptional customer service, FMF26’s lineup will give you the tools and the relationships to make it happen.
Hear directly from the shippers who shape expectations across the final mile. FMF26 shipper connections are the name of the game! These panels are designed for their honesty, energy, and insight by offering an unfiltered look at what customers really want and how providers can deliver. The What Shippers Want panels are:
Because in the final mile, who you know is how you grow — and understanding the shipper mindset is essential.
FMF26 offers a curated mix of sessions that address the trends shaping last-mile delivery, including:
More sessions are being finalized so stay tuned! Every session is built to deliver value you can bring home and use immediately.
Some of the most valuable moments at FMF26 happen around the roundtable. In Carrier Roundtables, peers dig into the real issues, including workforce, operations, technology, customer demands, and walk away with solutions they can use immediately. In Shipper Roundtables, shippers and partners sit down together for open, honest discussion you won’t find anywhere else.
These sessions deliver education, clarity, and connection all at once — proving that who you know is how you grow and your network is your net worth.
And with Austin as our backdrop, inspiration comes easy. Expect an event filled with education, music, culture, and connection — all designed to fuel your next stage of growth.
🎯 Join us in Austin for FMF26, February 18–20, 2026. Early Bird registration is open through December 31, 2025.
👉 Secure your spot now.
Register now!
February 18–20, 2026 | Austin Downtown Marriott | Austin, TX
In the final mile, connection isn’t optional — it’s everything. That’s why there’s no event quite like the 2026 Final Mile Forum (FMF26). Hosted by the Customized Logistics and Delivery Association (CLDA), FMF26 brings together carriers, shippers, technology providers, and industry leaders to share ideas, solve challenges, and strengthen the partnerships that move our industry forward.
This year, we’re heading to Austin, Texas, where innovation and energy meet opportunity. Over three powerful days, FMF26 will spark collaboration, deliver insight, and connect you with the people who are shaping what’s next in last-mile delivery.
Unmatched Networking: From receptions and roundtables to golf and Go-Karts, FMF26 offers countless ways to connect. Because who you know is how you grow.
Industry-Leading Education: Dive into shipper panels, general sessions, and discussions that explore trends, technology, and strategies driving the final mile.
Hands-On Access: Meet the partners, solutions, and innovators helping companies streamline operations and scale smarter.
The Austin Experience: Enjoy live music, world-class dining, and the vibrant energy of one of America’s most exciting cities.
FMF26 isn’t just about what you’ll learn — it’s about who you’ll meet. Every handshake, every conversation, every idea shared in Austin is an investment in your business. Because in this industry, your network truly is your net worth.
Whether you’re a first-time attendee or a CLDA veteran, you’ll leave FMF26 with actionable ideas, lasting relationships, and a renewed sense of possibility.
🎯 Join us in Austin, February 18–20, 2026.
Early bird registration is open now through December 31, 2025. Secure your spot today!
In a business where the clock never stops and every mile counts, last-mile carriers face the constant challenge of balancing customer expectations with controlling costs. “Thinking Outside the Box” interviewed Andrew Leone, CEO and co-founder of Dispatch, about profitability and cost control. The big takeaway was that the path to profitability starts with knowing your numbers and using technology to put those numbers into action.
Understanding Your Biggest Cost Drivers
Leone said there’s nothing mysterious about the biggest expenses in last-mile operations. Maintenance, fuel, and asset utilization still top the list. “Your largest overhead is how well you utilize your assets,” he explained. “The question is how many of your miles are truly productive?”
Deadhead miles—those driven without revenue—represent invisible profit loss. Measuring and minimizing them is one of the fastest routes to better margins. Equally important, Leone noted, is managing vehicle wear and tear, especially on fleets that regularly carry heavier loads. “If you’re hauling weight day after day, it adds up as a delayed expense in the long run,” he said. “Suspension, brakes, all of that adds up and sneaks up over time.”
Finding the Savings: Route Optimization and Bundling
The most immediate cost wins for many carriers come from route optimization and efficient bundling. “We see the most savings when jobs are bundled and routes are built around direction and density,” Leone said. “The goal is always to maximize the vehicle. It’s all about how much productive work you can get moving in the same direction.”
Allowing larger delivery windows can expand bundling opportunities, while strategic routing tools help minimize overlaps and improve per-mile efficiency. Leone emphasized that balancing optimization with service level is key. “You can have a full truck every day, but if you’re not meeting customer needs, you’ll lose that volume fast,” he pointed out.
Balancing Consumer Demand with Profitability
Leone talked about the balancing act between how full your truck is and how happy your customers are. “It’s a tightrope walk,” he said. “Every carrier struggles with maintaining on-time performance while keeping assets profitable. That’s the whole game.”
How Technology Changes the Game
Gone are the days when successful routing could rely solely on instinct. Leone acknowledged that seasoned dispatchers have a great gut feel but said that even the most experienced dispatcher can’t compete with real-time data platforms.
“In today’s world, you really can’t route effectively without technology,” he said. Dispatch’s platform uses AI and machine learning to analyze variables like GPS location, time windows, and current capacity to recommend more efficient assignments. “Maybe a job pays less,” Leone said, “But if it fits better per mile, you end the day more profitable.”
Premium Deliveries and Smart Pricing
Higher urgency means higher margins. Leone pointed out that certain sectors, like jobsite or industrial deliveries, command premium pricing because the cost of delay is so high. “If an HVAC crew is waiting at a jobsite, that downtime is costing them money,” he said. “They’ll gladly pay more to keep that site moving.”
The same holds for time-sensitive or emergency deliveries, such as airplane parts, manufacturing components, or other critical materials. That’s where customers will pay to cut downtime. Leone advised carriers to balance these ad hoc, high-margin jobs with a steadier base of work, such as same-day routes, to build consistency and predictability throughout the year.
The Challenges of Scaling
Scaling up is one of the hardest challenges in our industry, especially during high-demand times like the holiday peak. Leone warned against overextending too quickly. “You need enough financial cushion to weather underutilized assets when entering new markets or ramping up hiring,” he said. Scaling too fast can erode your core business.”
Peak seasons amplify this risk. “It’s always a guessing game,” Leone admitted. “Volume might surge earlier or end sooner than expected. You can plan for a general window, but precision only comes with data.”
Leone encouraged carriers to rely on historical data, such as delivery counts, mileage, and seasonal patterns, to develop better forecasts. Today, AI tools make analysis easier for even small operators. “You don’t need a staff analyst anymore,” he said. “You can upload your delivery history using tools like ChatGPT or Gemini to get usable trends and forecasts.”
The Power of Data-Driven Decision-Making
For Leone, the ultimate competitive advantage lies in data discipline. “Every carrier should know how many of their miles are revenue-producing. They need to know when their usually slow months hit and where their inefficiencies are,” he said. Good record-keeping, whether through software or simple spreadsheets, builds a foundation for better decisions.
Dispatch’s platform, for example, continuously aggregates and analyzes carrier work requests, using AI to recommend additional revenue opportunities without compromising performance. “It looks at where you are, what’s nearby, and what can be added efficiently,” Leone explained. “That’s how you add throughput intelligently.”
Building Stability Year-Round
Finally, Leone reminded carriers that profit isn’t built in bursts. It’s built in balance. “Instead of chasing every surge, look at how to smooth the year out,” he advised. “Fixed costs never go away. The best operators find steady contract work to cover the base and then layer in higher-margin, real-time loads on top.”
That consistency, Leone said, doesn’t just improve revenue. It reduces stress. “When you have a solid foundation of predictable work, everything else—the premium jobs, the peaks, the surprises—becomes an opportunity, not a source of anxiety,” he advised.
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Want to know more about using technology to increase profitability? Learn more at www.dispatchit.com.
This year’s holiday peak delivery season will start earlier, putting more pressure on last-mile providers than ever before. That was the prediction of CLDA Board Member, Ruth Correa. This will be her 17th holiday season in the logistics space, and she expects this to be one to remember.
Correa founded two last-mile providers, Tempo Couriers in 2008 and Cheetah Final Mile LLC in 2022. She is the CEO of Cheetah Final Mile, a transportation services company operating in Missouri and Tempo Courier in South Florida. The company focuses on same-day logistics, warehousing and outsourced transportation services. “Thinking Outside the Box” asked her for her thoughts on the upcoming holiday peak delivery season.
Earlier Start to the Holiday Peak Delivery Season
“Because of tariffs, a lot of retailers frontloaded what they bought in before the tariffs took effect,” Correa points out. “I think that will affect when the sale of those items begins this year. Even though the calendar suggests it should be a shorter holiday season, I don’t think that will hold true. I predict retailers will start holiday sales a lot earlier than in the past.”
For carriers, that means they’ll need to prepare for the peak holiday season earlier than ever before. “Everything is going to happen earlier,” she says. “We carriers are going to have to be flexible on the start of the peak season,” she says. “That means, right now, we should be looking at past data to help us optimize routes and reach more points in less time.”
Preparing Now
Correa advises couriers to take immediate action to prepare for peak season. “This is the calm before the storm,” she says. “At our company, we’re doing a lot of cleanup. We’re ensuring that all returns are taken care of. We’re freeing up floor space in our warehouses. We’re also cleaning up our equipment and replacing any that can’t do the job we need.”
On the people side of things, Correa suggests using this time to onboard new drivers. “You want to make sure you have enough drivers ready for the season ahead of time,” she advises. “They need to be onboarded correctly now so that when the time comes, you have a good pool to pick from.”
She also suggests taking a good, hard look at ways to improve efficiencies through technology. “If you’re going to bring in new technologies to improve your processes, now’s the time to start and to get your team trained to make the most of it when peak arrives, whenever it does,” she says.
She points out that while communication is always key, it becomes even more critical during the holiday season. “People have heightened expectations during the holidays because they need to know their items will arrive before Christmas Day,” she points out. “So now is the time to make sure that your processes and your technology are running correctly before that moment arrives. Whether it’s your customer, the shipper, or their customer, the consumer—everyone wants to see where their packages are and where they are along the way. That’s where technology comes in. If you have the right technology in place, everybody has visibility. That’s going to lessen the number of people you need in the office and the number of emails and phone calls you will need to respond to.”
Reach Out to Shippers
Correa expects to reach out to her regular customers starting in October to gather their estimates of what they expect from her company during the peak season. It’s something she does every year, but this year she’ll be doing it earlier. “At the beginning of October, we will be reaching out and seeing what kind of pipeline to expect from our customers,” she says.
Words of Advice
Correa offers these words of wisdom to help last-mile providers weather Holidays 2025:
1) Sleep now because you won’t be sleeping later.
2) Preparedness is key. You cannot be too prepared. Have more than you need.
3) Make sure your technology is up to speed; that everybody knows how to use it, and knows how to make the most of it.
4) Automate as much as you can.
5) Understand route optimization.
6) Add enough independent contractors to your pool now. Ensure that they’re onboarded and that you have all the necessary paperwork. Test them on routes before peak starts, so it’s not their first time during peak.
7) Have the right equipment in place to meet the need and flex when needed.
8) Train your in-house team to meet your customers’ expectations.
Correa sums it up this way: “It’s going to be interesting to see what the consumer does this holiday season. Will the tariffs raise prices enough to curtail sales? Will retailers start offering deals earlier than usual? I know the calendar says the season is supposed to be shorter, but I’m expecting it to start earlier. So what will that mean? Whatever happens, my biggest advice for carriers is to be ready to be flexible. That’s always been the strength of those in this part of the supply chain. I expect this year to be a real test of that resilience.”
What are the insurance issues impacting those in the final mile? And how can carriers manage risk?
“Thinking Outside the Box” recently interviewed Bryan Paulozzi, Vice President, Risk Strategies, part of the Brown & Brown team, to get his take on the industry today and tomorrow. Bryan and his team at Risk Strategies have been involved in risk management and insurance for those in the supply chain for over two decades.
What are some of the unique risks those in the final-mile are facing?
A lot of it is related to their use of 1099s. There are some unique risks when it comes to this sector’s use of subcontractors. These drivers are using their own vehicles to do deliveries. That’s a challenge because insurance company underwriters do not easily understand this model.
Things become even more challenging when carriers use a combination of employee and 1099 drivers. They have a fleet of vehicles that presents its own risk profile. Those hybrid risks really become challenging when it comes to insurance. Suppose we have a courier company with 20 box trucks and vans on the road, and they have 1099 drivers operating under the same authority. In that case, few insurance carriers understand and are willing to cover them.
Traditional insurance players like Allstate or Travelers don’t want to underwrite these types of risks. So when we’re working with companies like those involved with the CLDA, we often have to go into the specialty market to find coverage.
We’ve heard a lot about the changes in the marketplace, especially with the growth of e-commerce and rising consumer expectations. How have those expectations had an impact on the insurance and the risk management end of things?
Ever since COVID, the visibility of the services of those in the last-mile industry has put a spotlight on this sector of the supply chain. They are now on the radar for insurance carriers. Insurance underwriters have become more aware and attuned to it. And they are pulling back. They don’t want to deal with the unique risks in this sector. That’s tightening the underwriting market from that capacity.
In addition, if you look at how the model’s been built, using 1099 drivers who use their own cars or vans, and pickup trucks, that’s a problem. They have been using their personal auto insurance. Uber and Lyft have really shone a light on people who moonlight with their vehicles to deliver passengers and packages. We refer to that as the “uberization” of the industry. That’s not what personal auto insurance was intended to cover. If these drivers cause an auto accident, it’s questionable whether their personal auto insurance will respond to the claim. When that happens, claimants are looking to the dispatching courier company for restitution, sometimes even bypassing the 1099 driver altogether.
Furthermore, personal auto insurance carriers have gotten wiser when it comes to claims. One of the first questions they ask is “Were you making a delivery when you had this accident?” More and more, these claims are making their way up to the courier company. This is creating one of the biggest challenges facing this industry in terms of non-asset exposure is finding non-owned and hired auto insurance or contingent auto liability that insures their risk at an acceptable price for the courier company.
How about the impact of technology? How has that affected insurance and risk management for last-mile providers?
Technology is good when utilized appropriately. Often, companies have telematics, dash cams, or face cameras. These are excellent when it comes to creating a proper risk management structure for a company’s driver network. When they use the data they collect appropriately and follow through on what it tells them, these can be great tools. They help companies make sure the drivers they use are doing their jobs safely. And when this technology pinpoints a problem, smart companies work with the drivers to correct any issues.
On the other hand, those who have the technology but fail to utilize the data could face issues when a claim is made. If the technology shows unsafe behavior and a claimant’s attorney gets hold of it, that could be a problem.
What is the biggest misconception last-mile companies have about risk management?
Their most significant area of exposure is the use of independent contract drivers. Due to the sensitivity surrounding the IC model, many believe they cannot impose constraints on their drivers’ behavior regarding safety. However, just because they’re 1099s, it doesn’t mean there can’t be some form of enforcement when drivers engage in unsafe behavior. If companies notice that a 1099 is underperforming, based on the tracking mechanisms they have in place, they should take action. And if the driver continues the behavior, it’s the carrier’s prerogative as a business owner to say, “I’m no longer going to give you my work.” They have the right to choose who they work with, and they certainly want to contract with good performers.
The other misconception is around work injury coverage. That’s often something that’s overlooked for 1099 drivers. I can’t tell you how many times we’ll hear from customers that it’s not their problem if a driver gets hurt on the job. “Work injury is something they handle on their own; they are not our employees,” they tell us. But that’s not necessarily true, because anyone can sue anyone for anything. And if that 1099 does get hurt while hauling a load for you, he has the potential to try to sue you for workers’ comp as an employee. Often, this gets overlooked because courier companies think, “I only worry about my W-2s and I’ve got a workers’ comp policy to cover them.” However, there have been instances where 1099s have pursued the carrier company’s workers’ comp coverage, which can become a significant issue.
What can a carrier do to control risk?
When you talk about risk management, the most crucial thing is driver hiring practices. You’ve got to have the appropriate driver hiring practices in place.
You have a driver grading system. You have to follow through on that. I suggest you pull these reports more frequently than in prior years. That’s the first part of having a process in place to put good drivers on the road.
The next part is tackling the whole concept of the use of personal auto insurance. Understand that when you’re using 1099s who are relying on their personal auto insurance, your company is bringing yourself one step closer to the fire in the event of a loss. There’s a commercial insurance product that’s been around for 20 years that can help here. It’s called While Under Dispatch auto insurance. It provides an additional layer of coverage. Basically, it’s commercial auto insurance for 1099 drivers, covering them while they’re on dispatch. Once the driver accepts work from the company, they are covered by dispatch insurance in the event of an auto accident. I believe couriers will often find themselves in situations where this is necessary at the driver level to help create insurability for them at the corporate level. Many hired/non-owned auto insurers who are willing to underwrite courier companies are growing less fond of the whole personal auto exposure. I think over the next 12 to 24 months, we’re going to see more use of this kind of coverage. I’d advise all courier companies to start looking at this because I can foresee a time when the carriers will require something like this to secure commercial coverage of the operation.
It sounds like the environment keeps changing. How does a carrier make sure they are keeping up with those changes?
You need to work with an insurance agent who’s experienced in this arena. Last-mile carriers are unique. There are only a handful of insurance brokers in the country who know how to handle these operations.
You want to work with an agent who will be your advocate. At Risk Strategies, we’ve been specializing in this industry for the last 20+ years. It’s all we do. So we know the questions these business people have. We know how to help them wade through a 30-page application to help them further understand their business needs. No one operation is the same. So, as brokers, we need to ask a lot of questions. We know when to push for more information. We understand how to deal with the unique issues around 1099 drivers. We understand the idiosyncrasies of also having a fleet of your own vehicles. Or what kind of work injury coverage you should have. These are unique things that pose their own type of exposure. If you’re not working with someone who can have an informed conversation with the underwriter at the insurance company, it could become a problem when the coverage is needed.
The dialogue you have with a broker is the key. If you find yourself in a situation where you’re not getting those kinds of questions from your broker, you should ask yourself why. You need to interview the broker on these issues, not just about getting you the best price. What you perceive as a “better price” may, in reality, mean you’re buying less coverage. So make sure you work with a broker who can explain those trade-offs.
What I’m hearing you say is that the courier should look for a long-term relationship with the broker; one that’s more of an advisory one than a vendor one.
Yes. The best customers I have are the ones that are the most engaged. We have customers who bring us RFPs for new business, allowing us to review the risks with them before they consider taking the business. They say, “We’re thinking about getting into this line of work. What does that mean, exposure-wise, for us? There’s a trusted relationship that goes deeper than just providing them with a certificate of insurance.
When we have that type of relationship with a carrier, the pricing issue starts to dissolve. That doesn’t mean we’re not price-conscious. We have to be. But it means that ultimately we’re a member of their team. Last-mile providers need a trusted advisor, much like they would have an attorney and a tax accountant.
Given how long you’ve been involved in the industry, what are you projecting for these couriers looking forward to? What’s the environment going to be like? How are things going to change in the next three to five years?
What we’re going to see is more of a push towards a different model. The issue surrounding the use of 1099s and personal auto insurance coverage is going to come to a head. I expect those 1099s will have to carry commercial auto insurance or while under dispatch auto. As a result, courier companies could be seen less as licensed motor carriers and more like freight brokers. And, if they’re seen as having a broker carrier relationship with their 1099s, that could also help with the whole misclassification issue.
Another issue that I expect to gain prominence is the growing trend on the cyber front. This has really taken off since COVID. Because the supply chain network is so transactional, it’s been targeted by cyber criminals more than ever before. Hackers are effectively infiltrating delivery companies’ systems. They are intercepting emails. They’re redirecting ACH funds for payment to different bank accounts. They’re showing up at terminals and directing freight to a specific part of the parking lot where there’s no surveillance. And they’re having their guys loaded up with unmarked vehicles. This type of stuff is happening because the demand on the supply chain is so high. The transactional nature of this business is so fast.
We’re seeing way more cargo theft. It’s higher than it’s ever been before. So, I think that ultimately, the courier company will need to do more to protect themselves from these exposures. I think you’ll see cargo underwriters mandating warranties and implementing safety mechanisms when it comes to offering cargo insurance protecting against these issues.
Clearly, this is a complex issue. I know you’ll be doing a CLDA webinar on Sept. 10. Tell us about that.
The webinar will focus on the challenging environment we face in the insurance sector, discussing a myriad of coverage issues unique to this space while educating attendees on what to look for when shopping for their coverage. We will discuss ways to select a broker and outline some of the key questions to consider. It’s important because ultimately, if people don’t understand what they’re buying, they’ll potentially have gaps when there’s a loss.
If people have questions about this topic, how can they get in touch with you?
They can reach me directly at 440-260-1058, or via email at bpaulozzi@risk-strategies.com.
Customer expectations of rapid, visible and free delivery are putting enormous pressure on both shippers and carriers. How do last-mile providers balance customers’ expectations for speed, cost and quality while controlling costs? And how have they learned to partner with their shipper customers to help them meet the demands of their customers?
Thinking Outside the Box recently had the opportunity to get up close and personal with a shipper and their carrier to get answers to these questions. Last-mile provider Harold Boyett is the President and CEO of Blue Streak Couriers. His long-time customer, Mark Meier, is a supply chain executive in the medical industry.
Here is part of their conversation:
QUESTION: How have customer expectations changed over the years?
Meier: Our customers expect the right products to be in their hands at the right time. Their main concerns are that we are fulfilling at the speed they want with the right products. Because we operate in the healthcare space, there’s no room for error. They expect the product to arrive in good shape. That’s essentially our three-legged stool: quality, on time, and reasonable cost.
Boyett: From our point of view as carriers, the thing that’s changed the most is all about information – the information about a shipment, whether it’s a package, a pallet or an envelope. Information today is equally as important, if not more important, than the shipment itself. It’s all about knowing that it’s coming, what is coming, and, most importantly, when it’s coming. It ties in with some of the things Mark said. It’s all about the right product in the right place, at the right time.
Customers today have precise, time-definite expectations. They want to know if the delivery will arrive on Tuesday between 8 and 4, as that’s the most critical information. They’d rather know that it’s coming Tuesday between 8 and 4, with a lower cost, than to pay more to have it expedited to arrive Monday morning. If they know it’s going to be there within a specified time window, they can plan accordingly.
QUESTION: Have those expectations changed since COVID?
Meier: Yes. COVID forced customers into new patterns of behavior. They now expect that almost everything can be delivered to them. It happened with deliveries to people’s homes, and it’s played out for our customers and their businesses. Our customers are small businesses. They are healthcare offices, and they don’t keep a lot of inventory on hand. So they rely on their suppliers to have everything as readily available as possible. That’s the new normal. Everyone expects to be able to get what they need when they need it.
Boyett: There’s no question that COVID has and will continue to have an impact on customer expectations. During the pandemic, numerous packages were flowing, and seemingly everything was delayed. It didn’t matter who the carrier was, what you were ordering, or where you were ordering it. I think that’s where the emphasis on knowing when it would arrive came from. Customers saw this as more important than the actual speed of delivery.
Mark: I agree with the points Harold shared. Our customers value stable deliveries, allowing them to plan accordingly. For example, if they’re accustomed to receiving delivery within a time-definite window, on the same day, week after week, that’s what they expect. Therefore, we need to collaborate with the last-mile carrier to ensure that we meet the expectations of those customers. Setting up a stable pattern is a very important aspect of our distribution.
QUESTION: What about returns? Have customer expectations changed over the years on this issue?
Boyett: I think from a business-to-consumer perspective, my understanding is that because people are so used to ordering things–things they can’t touch or feel–that they are doing things differently. You see customers ordering three different sizes, knowing they can return the ones that don’t fit.
And today, with the omnichannel mindset of shopping, that exact scenario applies when it comes to returns. You can drop it off at the store where it was purchased or at another designated location. You can drop it at the Post Office or the UPS store. You can arrange for it to be picked up from your house. All those are things that didn’t exist five years ago.
Meier: Since our customers are healthcare providers, returns in our world are handled differently. Our customers aren’t ordering things they are unfamiliar with. So, returns usually happen because the need has shifted. These products have high intrinsic value, so returning them properly is crucial. In our case, the speed at which a return is completed isn’t as critical to the customer. If it happens within a reasonable number of business days, it’s fine as long as the return is credited promptly.
Boyett: On the other end of the spectrum, today’s consumers want almost instantaneous credit for their returns. In the B2C world, as soon as a consumer drops it off at the UPS store and when that barcode is scanned, customers expect retailers to issue a credit almost immediately.
QUESTION: As customer expectations continue to rise, how can last-mile providers face the challenge of meeting these demands while controlling costs and maintaining service quality?
Boyett: You have to leverage technology. You need to leverage technology to streamline processes, reduce costs, and build efficient workflows. The data that accompanies the packages, specifically the exceptions, is everything. You need to have technology in place that helps you manage exceptions, allowing you to identify them quickly and communicate them to the customer promptly. The best-case scenario is that they realize it before it happens.
What that means is that the customer understands you’re being as transparent as possible. It’s our job to help our customers serve their customers best. Therefore, if a carrier is aware of a problem that will cause the package to be delayed, they must notify the shipper, who can then inform their customer. It’s all about having and making the most of information as it happens. So, it’s really the information that’s the game changer. How you handle that information makes all the difference in the world to the customer who is relying upon your service.
QUESTION: Harold talks about harnessing the power of information. How important is that information in terms of the shipment’s visibility?
Meier: That’s a critical factor. It speaks directly to our credibility as a supplier. For us, credibility is carried out by the last mile, which is facilitated by the parcel carrier. I couldn’t agree more with what Harold said. It’s all about knowing where that shipment is and what’s going to happen next. Imagine a scenario where an office manager is searching for something the doctors need but can’t find answers about where it is. The worst-case scenario is when they can’t find answers. On the other end of the spectrum, if they know about an exception before they discover it, that’s a better situation. Therefore, we must trust that the information received from the carrier aligns with our real-life experience. We have to be able to trust that technology.
We know that, in the real world, traffic, outages, and weather happen. So, whatever disruption occurs, if the carrier lets us know they are addressing it appropriately, we can inform our customer. If the carrier’s data is communicated quickly, there’s less friction in a shipper’s relationship with their customer. That builds confidence, ultimately leading to increased customer loyalty.
QUESTION: We’ve discussed technology extensively, but is the human touch still important?
Meier: It is. But it all depends on the customer. When there’s an issue, some may want to talk to somebody to hear about your plan to fix it. Having a CSR with information at their fingertips who can do that well is very important.
In other situations, customers may want to get what they need with just two clicks on a website. They want to be able to see the information they need, in the way that they want to consume it, when they need it. One of the things we do when we have an exception is to point them to a self-service source. We do so not because we don’t want to talk to them face-to-face, but because it’s available to them in the moment.
QUESTIONS: Let’s end by having each of you talk about where you see customer expectations going in the next few years.
Boyett: The technology is the main thing. Technology is happening. Artificial intelligence is poised to become a significant presence in our field. The use of autonomous vehicles and robotics is expected to become increasingly important in the near future.
Meier: I’d add a couple of things there. One is that we just discussed technology and people’s comfort level with it. That was accelerated over the past couple of years. Some of those new opportunities, delivery methods, and increased information availability are being consumed much more widely than they have in the past.
We discussed the need for information to match the speed of product development. Harold mentioned something earlier about the importance of being able to tell a customer about an exception before they discover it. That will become the norm. And that bolsters customer loyalty.
Today, most of our customers are not checking websites. They’re not watching for tracking. They’re expecting it to be either Tuesday afternoon or Thursday afternoon, because that’s how it happened last time. They expect it to be fulfilled in the same way.
In other words, if you can obtain that information before they notice the package hasn’t arrived, that’s not exactly customer delight, but it’s better than the alternative. With today’s technology, that’s happening. Tomorrow’s tech will make it happen even faster. And with that, we’ll be able to continue to improve customer satisfaction and loyalty.
