Home » 3PL/4PL, Aviation, Breaking News » Small parcels shifting to premium transport services

A global survey of express users and carriers has revealed a strong momentum towards the use of premium services by shippers, driven not least by the increasing demands of e-commerce customers, according to a new report by Transport Intelligence (Ti).

When asked whether they were seeing a change in the mode used to move parcels, the largest proportion of respondents to the survey indicated that they were experiencing a net shift from road to air. This “reflects the increasing time sensitivity of the sector and the rise of cross-border e-commerce,” according to the report entitled “Global Express & Small Parcels 2017.”

Express carriers will also seemingly need to gear their operations up for more “same day” deliveries. The survey indicated highest levels of growth will occur in the premium same-day delivery segment of the market, followed by growth in “next day” deliveries. Deferred, economy volumes were, however, expected to decline.

On which sectors will offer the best prospects for volume growth, Ti’s survey suggests that e-commerce is “by far and away the most important to the industry.” It sees the situation continuing for the foreseeable future, with 75% of respondents selecting it as their first choice.

E-commerce was followed by high tech and perishables.

“Given Amazon’s entry into this latter sector through its development of specialized packaging, this could become an even more important battleground for express carriers,” said the report by Ti, a leading provider of research and analysis dedicated to the global logistics industry.

“It seems that the time sensitivity being demanded by users of express parcels services is increasing in line with the ‘on-demand’ economy and driven by e-commerce,” said John Manners-Bell, Ti’s CEO and a contributor to the report. “The shift to air is no doubt being reinforced by the stronger global economy which is good news for international express players.”

But he also noted a downside. “What is not so good for the market leaders, however, is another finding of the survey which reveals the perception that conventional/legacy courier express and parcel providers will lose volume share to other parties such as Amazon or Alibaba.”

Photo: Kristoferb

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