Inside Logistics

Shifting dynamics in the global parcel marketplace

From the May-June 2014 print edition


July 16, 2014
by MM&D Staff

The dynamics of the express and small parcel market are shifting as time requirements and technology enhancements such as 3D printing and e-commerce result in more options for customers. Added to this changing scenario are improving economies and the rising needs of emerging markets.

This is the key finding of Transport Intelligence’s new report, Global Express and Small Parcel Market, 2014.

The report reveals that for 2013, the global express and small parcel market grew 6.8 percent from 2012. This growth, not surprisingly, was led by emerging markets in Asia-Pacific, South America and the Middle East. But at the same time, improving economic conditions in the US also resulted in improving demand for services. For Europe, innovative delivery solutions such as lockers and other alternative parcel pick up points have created an interesting market as well.

DHL Express, FedEx Express, TNT Express and UPS have all played leading roles in the express and small parcel market but competition is picking up from regional providers and post offices within domestic markets. How are these leading providers responding?

Indeed, changes within domestic markets are definitely occurring but international express services are still dominated by the integrators. But, like everything else, shifts in product mix and service levels are underway and have also resulted in changing needs for such services. However, for the international time-definite leader, DHL Express, it continues to consolidate its global lead with a strategic focus on this need.

The global express and small parcel market is forecast to grow at 9.8 percent through 2017. While all regions are expected to note good growth for this period, Asia-Pacific, Africa and North America will be the leaders with the highest forecast growth rates.