Value of express parcels worldwide increases 7pc

THE value of the express parcels market globally expanded by nearly seven per cent in 2010 to amount to EUR141.55 billion (US$197.82 billion), marking a turnaround from the 10.6 per cent decline experienced in 2009, according a data compiled by the UK's Transport Intelligence.


"Although the market as a whole rebounded strongly, performance from market to market was very patchy. Overall the international express parcels sector performed better than its domestic counterpart, showing strong growth throughout all regions as international trade rebounded on the back of inventory re-stocking. The trend was consolidated by a hardening of rates and the migration of shippers to higher value products, although there is still a great deal of caution," said its 2011 report on 'global express parcels.'


"Domestic operations, especially in Europe, had a much tougher time. Although experiencing some levels of growth, volumes were still subdued in many markets. The one exception was in the online shopping sector, where all B2C express companies benefited from a surge in demand from consumers.


"This trend was especially acute in China, where express companies' capacity failed to keep up with demand, leaving many shoppers dissatisfied with levels of quality and their parcels delivered late for the holiday period," it said.


Looking ahead, it said rising fuel costs and instability in the Middle East are likely to be the major challenges for the industry for the remainder of the year.
(Source:http://www.schednet.com)