As Lithuanian residents began withdrawing funds accumulated in the second pillar pension system, parcel delivery companies also felt the impact. For example, SmartPosti recorded approximately a 20% increase in parcel volumes during the first half of April this year. Similar trends are expected after the second quarter as well, meaning that customers should plan their orders in advance to avoid bottlenecks.
During the first quarter of this year, more than half a million Lithuanian residents submitted requests to withdraw from the country’s second pillar pension system. In total, they received nearly €3 billion, with the average payout amounting to around €5,600 per person.
The impact of this influx of money was felt almost immediately. Not only did travel agencies and retailers of smartphones, computers, and household appliances report significantly increased consumer spending, but parcel delivery companies also experienced a sharp rise in demand.
“April showed just how quickly additional household income is reflected in parcel volumes. As early as the end of last year, when economists were discussing how much money could be withdrawn from the second pillar pension funds, we anticipated that our workload might increase as well. However, we certainly did not expect growth on such a scale,” recalls Vaidotas Kirkickas, Operations Manager at SmartPosti Lithuania. Compared to a typical spring week, parcel volumes in April were approximately 20% higher – levels usually seen only during the Christmas peak season.
Will the Story Repeat After the Second Quarter?
As July approaches, payments will begin reaching those residents who submitted withdrawal requests from the second pillar pension system during the second quarter. The market is once again expecting an influx of additional funds, which could lead to another increase in parcel volumes.
“Summer is vacation season. Pension payouts will increase overall consumer purchasing power, which means more money will be spent on preparing for holidays. There is little doubt that, when getting ready for vacations, people will purchase at least some of the necessary items and accessories online and have them delivered to parcel lockers. As locker occupancy increases, delivery times may become longer. Therefore, to avoid disrupting holiday plans, parcels should be ordered well in advance,” notes V. Kirkickas.
According to him, rising parcel volumes place additional pressure on the entire logistics chain – from fully occupied parcel lockers to couriers, sorting personnel, warehouse staff, and their workloads.
More Parcel Lockers Mean Easier Collection
As parcel volumes continue to grow steadily, SmartPosti is expanding its parcel locker network in Lithuania. The company has also recently started cooperating with the shared parcel locker network uDrop. As a result, by the end of this year, the number of locations where SmartPosti parcels can be collected will increase by nearly one quarter.
“We continuously invest in expanding our network and increasing capacity to accommodate growing parcel volumes. However, during peak seasons volumes are high and parcel lockers fill up quickly. Therefore, I would once again like to emphasize that, especially before holidays and major festive seasons, customers should avoid leaving orders and purchases until the last minute and instead plan deliveries with sufficient time to spare. It is also important to collect parcels as soon as possible after receiving the notification, as this helps free up locker space and ensures that other customers’ parcels can be delivered on time,” stresses V. Kirkickas.
The Operations manager also reminds customers that, when using parcel lockers, it is important to provide accurate delivery information and carefully consider which collection location will be the most convenient at the time of delivery.
“Sometimes people realize they need a product at the last minute. If you are vacationing within Lithuania, there is still a solution even in such situations – simply think ahead about which parcel locker network, covering the entire country, will be most convenient for collecting your order at that particular moment, and have your parcel delivered there,” advises V. Kirkickas.