Express and Courier Industry

Global speak and courier assiduity all overview Introduction The direct business of the distil constancy is the delivery of time-sensitive shipments, typically with a deportation time of two to three days. These are delivered mainly by sort and ground. The constancy has been witnessing significant egression as a result of the unbroken rise in ingest for express and courier services over the last decade across user industries, including manufacturing, pharmaceutical, financial services and hi-tech sectors.In the last decade, the advent of e-commerce business models and their subsequent penetration on with increasing demand from the financial services sector contributed to strong industry growth. Most companies provide an additional range of activities besides pure transference, including online track of shipments, online payment collection and insurance facilities. However, in recent times, the industry has witnessed a deceleration in growth as a result of acclivitous terminate cost and reduced demand from user industries due to the international economic slowdown. Major playersTraditionally, due to low demand and high cost of operation, the express industry has been dominated by national postal departments. epoch some of them still continue to be dominant in their single national markets, others realise evolved into larger regional and global players with multi-modal operations much(prenominal) as Deutsche Post World lucre (which also operates DHL) and La Poste. Globally, the industry is dominated by the big four Deutsche Post World Net (DHL), FedEx, United Postal Service (UPS) and TNT, all of which puddle strong multi-modal harness with worldwide operations.Key markets The US is the single largest market for express services, followed by Europe and the AsiaPacific region. In recent years, the Asia-Pacific region has experienced horrible growth, largely attributed to increased demand for express and courier services in china and In dia as well as preserve demand growth in Japan, Korea and Australia. Strong economic growth and increased international patronage due to manufacturing outsourcing from the western countries has particularly resulted in the fast-growing demand for express and courier in India and China.Key challenges Rising fuel prices Rising fuel costs have been the biggest concern of the express and courier industry globally over the past two years. Rising fuel costs have affected the industry directly via an increase in input costs and also indirectly by hampering growth prospects due to decreased demand from user industries. Environmental concerns As part of the transport industry, the express industry has also come under renewed pressure from both environmental groups and governments to lower its carbon footprint.Environmental laws have necessitated increased usage of vehicles disappear on alternative fuel to transport and deliver shipments across the globe. DHL, UPS and FedEx have begun to d eploy vehicles run on alternative fuel for deliveries and collection, especially in the mature US market. Outlook Over the past two years, the global express market has been reeling under the pressure of rising fuel and transportation costs and decrease in demand from the western countries.However, demand for express services is set to rise over the medium term with sustained growth of the Chinese and Indian economies. Over the longer term, the industry is expect to witness the emergence of large integrated players in the emerging markets of China and India. The market is expected to witness consolidation activities and a shift toward third-party logistics (3PL) and fourth-party logistics (4PL) players.