Global Small Parcel Market Sees Strong Growth

October 15, 2020


According to Pitney Bowes' latest shipping index, global small parcel volume surpassed 100 billion in 2019, reaching 103 billion -  a 17.7% year-over-year increase. That equates to 3,248 parcels shipped every second. Of that amount, China is the largest market with 63.5 billion parcels shipped in 2019, an increase of 26% in parcel volume year-over-year.

Asia-Pacific biggest market with exception of Japan

The Pitney Bowes report complements Spend Management Expert’s Global Small Parcel Market Report in which we estimate the global small parcel market size at 14.1% to $318.22 billion. The Asia-Pacific region is the largest geography and represents 34% of the global small parcel market.

Japan was the only country to show a year-over-year decline in parcel volume at -3.1%, although carriers are seeing a slight increase in revenue according to Pitney Bowes. Japanese carriers continue to struggle with delivering e-commerce volumes and, as a result, many carriers increased pay to attract additional delivery workers and raised rates to help manage capacity.

U.S. small parcel market fueled by Amazon Logistics

The U.S. small parcel market is the second largest according to both reports. Pitney Bowes estimates that 14.7 billion parcels were shipped within the U.S. in 2019, up 11.4% from 2018. Amazon Logistics, which is included in both years, delivered 1.9 billion packages in the U.S. alone through its in-house delivery network, with a CAGR forecasted at 22% to 2023.

Amazon Logistics is quickly rivaling UPS and FedEx in the U.S. last-mile delivery space. It continues to build an intricate nationwide network and is transporting and delivering more of its volumes. Pitney Bowes expects Amazon Logistics to compete for external business with traditional carriers such as UPS and FedEx. However, this effort has been stalled somewhat this year, primarily due to COVID-19 and the significant increase in Amazon’s own shopping volume.

UPS and FedEx still dominate the U.S. small parcel market

While the U.S. is ranked second in terms of small parcel volumes, according to Pitney Bowes, it is ranked first in terms of parcel shipping revenue at $130 billion. Indeed, even though UPS and FedEx announce their annual average rate of 4.9% (since 2014, incidentally) the duopoly continues to introduce incremental surcharges, as well as raise those already in place. To date, the number of surcharges is well over 100 and ranges from address correction, residential to additional handling.

Find Pitney Bowe’s shipping index here.

Download SME’s Global Small Parcel Report here.


ABOUT SPEND MANAGEMENT EXPERTS

Spend Management Experts provides strategic guidance to optimize your supply chain. Using cost modeling technology and market intelligence, we help companies with their transportation, distribution and fulfillment spend. Often large shippers can reduce their spend across the supply chain by 20% or more. We specialize in reducing distribution costs, increasing efficiencies, dynamic reporting, greater budgeting and forecasting accuracy and optimizing supply chain execution. We leverage our proprietary models to identify savings and build negotiation strategies based on data and business cases. As industry experts, our fresh approach provides clients with straightforward details on exactly how savings are derived. Spend Management Experts is your competitive edge, delivered.

Connect with Spend Management Experts on TwitterLinkedIn, and the Spend Management Experts blog.

 

 

 

 

Share this article:

Blog Posts

  • Categories

Tags

Global Small Parcel Market Sees Strong Growth

October 15, 2020


According to Pitney Bowes' latest shipping index, global small parcel volume surpassed 100 billion in 2019, reaching 103 billion -  a 17.7% year-over-year increase. That equates to 3,248 parcels shipped every second. Of that amount, China is the largest market with 63.5 billion parcels shipped in 2019, an increase of 26% in parcel volume year-over-year.

Asia-Pacific biggest market with exception of Japan

The Pitney Bowes report complements Spend Management Expert’s Global Small Parcel Market Report in which we estimate the global small parcel market size at 14.1% to $318.22 billion. The Asia-Pacific region is the largest geography and represents 34% of the global small parcel market. Japan was the only country to show a year-over-year decline in parcel volume at -3.1%, although carriers are seeing a slight increase in revenue according to Pitney Bowes. Japanese carriers continue to struggle with delivering e-commerce volumes and, as a result, many carriers increased pay to attract additional delivery workers and raised rates to help manage capacity.

U.S. small parcel market fueled by Amazon Logistics

The U.S. small parcel market is the second largest according to both reports. Pitney Bowes estimates that 14.7 billion parcels were shipped within the U.S. in 2019, up 11.4% from 2018. Amazon Logistics, which is included in both years, delivered 1.9 billion packages in the U.S. alone through its in-house delivery network, with a CAGR forecasted at 22% to 2023. Amazon Logistics is quickly rivaling UPS and FedEx in the U.S. last-mile delivery space. It continues to build an intricate nationwide network and is transporting and delivering more of its volumes. Pitney Bowes expects Amazon Logistics to compete for external business with traditional carriers such as UPS and FedEx. However, this effort has been stalled somewhat this year, primarily due to COVID-19 and the significant increase in Amazon’s own shopping volume.

UPS and FedEx still dominate the U.S. small parcel market

While the U.S. is ranked second in terms of small parcel volumes, according to Pitney Bowes, it is ranked first in terms of parcel shipping revenue at $130 billion. Indeed, even though UPS and FedEx announce their annual average rate of 4.9% (since 2014, incidentally) the duopoly continues to introduce incremental surcharges, as well as raise those already in place. To date, the number of surcharges is well over 100 and ranges from address correction, residential to additional handling. Find Pitney Bowe’s shipping index here. Download SME’s Global Small Parcel Report here.

ABOUT SPEND MANAGEMENT EXPERTS

Spend Management Experts provides strategic guidance to optimize your supply chain. Using cost modeling technology and market intelligence, we help companies with their transportation, distribution and fulfillment spend. Often large shippers can reduce their spend across the supply chain by 20% or more. We specialize in reducing distribution costs, increasing efficiencies, dynamic reporting, greater budgeting and forecasting accuracy and optimizing supply chain execution. We leverage our proprietary models to identify savings and build negotiation strategies based on data and business cases. As industry experts, our fresh approach provides clients with straightforward details on exactly how savings are derived. Spend Management Experts is your competitive edge, delivered. Connect with Spend Management Experts on TwitterLinkedIn, and the Spend Management Experts blog.  
     

Share this article:

Blog Posts

  • Categories

Tags