It was felt that for CUCCs to work, customer data would need to be shared with third parties, this would introduce issues with data security efficiencies and introduce extra liabilities. There is also the issue of how duties and taxes are collected for international shipments.
Public sector respondents highlighted potential political opposition to CUCCs, which would occur if there were concerns amongst voters or the business community if a CUCC were to represent overregulation or unnecessary market interference.
Generally, the concept of a CUCC was not well received by respondents and there was little support for the approach under any model. It was felt that if there were efficiencies associated with the approach then the freight sector would have already capitalised on this, with other interventions being more effective. It was felt that specifying commodity groups (e.g., particular groceries or retail items) that a CUCC would handle would be difficult to enforce and represent a burden to the sector.
An example given was the Palletline network, where palletised goods are transported by multiple operators to a single depot on a ‘hub and spoke’ basis. The goods are then delivered by that operator to end customers. This arrangement is undertaken on a purely commercial basis and cited as evidence that freight operators do collaborate where there are potential efficiencies and cost savings.
AICES stated that whilst members utilise their own consolidation centres for delivery, there is a concern around ‘area mandated’ consolidation centres for towns and cities. Whilst consolidation centres can work to help reduce congestion and costs, area mandated consolidation centres which are not administrated, or have a degree of control by express operators cause several issues.
Respondents stated that CUCCs need to be at an optimum location within a walkable/cyclable distance from the centre, lockable, secure, good access to road network, flexibility in contracts, with business buy-in or an engaged group of businesses that are keen to use it.
One successful example of CUCCs cited by several respondents was at airports, where security clearance requirements mean it is advantageous to drop and collect parcels from a location on the perimeter of the security cordon. These could then be transported within the airside area of the airport by dedicated vehicles and avoids the need for security clearance for all vehicles serving the airport.
Access to islands (Such as the Isle of Wight and Scottish Islands) were felt to work well for consolidation, with consolidation arrangements already in place at both these locations. This helps reduce crossing costs and vehicle movements on rural and less developed highway networks once a vehicle was on an island.
The concept of micro-consolidation/micro hubs was also felt to have potential, with certain goods being brought to a site near those receiving the goods and the ‘last mile’ being undertaken by cycle logistics or walking deliveries (although the RHA outlined limitations in the size/weight of goods that could be carried and potential issues around a lack of regulation for e-cargo bikes). The respondent from Amazon was keen to emphasise use of the term ‘transhipment’ rather than consolidation as that is what they are developing in places such as London.
The example of Regent Street in London, where limited storage space and high land values means retailers struggle to retain enough stock in stores was suggested as a successful example and one where there is a commercial basis for the intervention. Note that this differs from the literature review which suggested that only a minority (20-30%) of deliveries into the Street were being consolidated.
Parcel lockers were also cited as an opportunity for consolidation, which is being rolled out by the freight sector, often in ‘carrier agnostic’ banks of lockers with the customer representing the first/last mile.
Construction consolidation centres were also felt to have merit and examples were highlighted that significantly reduced vehicle movements associated with construction sites in urban areas. Planning conditions could be used to enforce their use as the development is under construction.
Public Sector respondents felt that collaborations between public and private sector to create partnerships were key and that harnessing a combined skillset of regulatory powers, innovation, practical experience in