Postal companies risk getting cut out of crucial e-commerce business, Cargo Facts Consulting finds | Air Cargo World
Air Cargo World

No products in the cart.

Subscribe
  • News
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Past Webinars
  • Podcasts
  • Magazine
  • Archives
Friday, May 20, 2022
Log In
No Result
View All Results
  • Airports
  • Carriers
  • E-Commerce
  • Express
  • Freight Forwarders
  • Technology
Air Cargo World
  • News
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Past Webinars
  • Podcasts
  • Magazine
  • Archives
Log In
No Result
View All Results
Air Cargo World
No Result
View All Results

Postal companies risk getting cut out of crucial e-commerce business, Cargo Facts Consulting finds

Frederic Horst by Frederic Horst
August 19, 2019
in All Posts, E-Commerce, Express, News
Reading Time: 4 mins read
0
Share on FacebookShare on TwitterShare on LinkedIn

In September 2019, Cargo Facts Consulting will publish a new report, the Global E-Commerce Logistics Outlook, to help companies craft their strategies towards a segment that has become increasingly important in logistics. This is the second of a series of articles leading up to the publication of the report that gives insight into our evolving research. At the link, find the first article focused on the logistics strategies of major e-commerce platforms.

This is not an easy time to be in the postal business.

The postal business has undergone fundamental shifts over the past decade. While postal companies worldwide have benefited from the growth of both domestic and cross border e-commerce, wholesale changes to the business model and scope of services will be necessary to survive and thrive.

Postal companies are key fulfillment agents in the e-commerce supply chain and most parcels moving through postal networks are e-commerce, although there are differences between markets. Figure 1 shows the share of packages associated with e-commerce in postal networks.

Figure 1 – E-Commerce Share of Packages in Postal Network

This has been good for revenue and volume growth. Over the last 10 years, the share of postal revenues from logistics and parcels have increased from 15% to 25%. During the same time, traditional mail volumes have continuously declined and represent only 39% of postal revenues today compared to 46% in 2017, according to statistics collected by the Universal Postal Union (UPU). Cargo Facts Consulting research has found that this shift in business mix has not necessarily been detrimental to profitability. Some companies, such as La Poste (France), Australia Post and UK Royal Mail have done extremely well. Others, such as the United States Postal Service, have seen losses increase.

Dependence on a single type of traffic is dangerous, given that the big e-commerce platforms have been insourcing their logistics operations and building their own inhouse delivery capabilities including last-mile delivery. The volumes most likely to move out of postal into private networks are those in higher-density urban areas. Postal companies that do not take a thorough look at their business model and evolve into different revenue streams may be left with the obligation to service a whole country but not enough volume in the cities to cross-subsidize this.

Some postal companies have been adapting to this change in the business environment and many smaller postal authorities operate beyond their traditional geographical boundaries and punch well above their weight. This includes the Luxembourg Post, Swiss Post, and Singapore Post, to name a few. These companies have moved beyond traditional delivery to offer a much wider suite of services including warehousing, pick and pack, or even launching their own e-commerce platforms to serve small and mid-sized businesses wary of the big e-commerce providers. Without any exception, those postal companies that have been successful have invested both in technology and infrastructure.

The most recent 2018 IPC Cross Border E-commerce Shopper Survey found that 71% of cross border e-commerce was delivered by postal companies. Cross border e-commerce growth, although smaller in volume than domestic e-commerce, has outpaced domestic growth. Figure 2 shows an example of this trend in the European Union, where usage of cross border channels has grown twice as fast as national ones.

Figure 2 – Development of Domestic vs Cross Border E-Commerce in the EU

The growth in cross-border as well as domestic parcel traffic has also driven renewed growth of global postal traffic carried by air. Figure 3 shows the global air mail traffic measured in billions of revenue tonne kilometers (RTK) over the last 10 years. In 2018 world airmail traffic grew by 12%, significantly faster than general air cargo traffic, which only increased by 4%.

Figure 3 – Global Airmail Traffic 2008 – 2018

Postal companies are well-positioned to participate in the fulfillment of cross border e-commerce which due to customs clearance and return requirements is more complex than domestic e-commerce distribution. Those companies that have moved beyond last-mile delivery and ventured further upstream into value-added services, regional and even global distribution on behalf of cross border e-commerce platforms and logistics platforms have seen strong volume and revenue growth.

The Cargo Facts Consulting Global E-Commerce Logistics Outlook will cover the development of both domestic and cross-border e-commerce and its effect on multiple segments, including air cargo and contract flying, express, postal, and ground networks including last-mile delivery services. It will also take a detailed look at evolving fulfillment and logistics strategies of key global and regional e-commerce platforms, as well as at the relationships that are developing between different parties in the e-commerce value chain. The report discusses how companies are positioning themselves to benefit from year after year of double-digit e-commerce growth. Not all existing and emerging e-commerce logistics business opportunities are profitable or without risk. The report will provide insight into which prospects have the greatest potential. See www.cargofactsconsulting.com for details.

Frederic Horst is Managing Director of Cargo Facts Consulting. He can be contacted by clicking here.

Tags: airmailecommercela postepostal serviceUK royal mailUniversal postal unionUPUUSPS
Previous Post

Atlas Air, ABX, Southern Air pilots protest at CVG

Next Post

SATS, TUMCREATE team up to create AI-powered robotic air cargo system 

Related Posts

Antonov Airlines looks to establish Leipzig as operational base
Carriers

Antonov Airlines looks to establish Leipzig as operational base

May 19, 2022
West Atlantic Sweden adopts CHAMP’s weight-and-balance software
Carriers

West Atlantic applies for US foreign air carrier permit

May 19, 2022
European, Middle East carriers’ lag in traffic continues into August
Freight Forwarders

Kuehne+Nagel, IAG Cargo purchase 8M liters of SAF from UK refinery

May 19, 2022
Swissport meets cargo handling demand with new VIE cargo center
Airports

Swissport meets cargo handling demand with new VIE cargo center

May 19, 2022
Announcing the Air Cargo Tech Summit
Technology

AGI’s Edip Pektas joins speaker faculty at Air Cargo Tech Summit

May 19, 2022
Air France-KLM and CMA CGM Air Cargo combine networks, freighter capacity
Carriers

Air France-KLM and CMA CGM Air Cargo combine networks, freighter capacity

May 18, 2022
China looking to divert flights from Shanghai as COVID surges
Airports

Airfreight stakeholders expect PVG volume surge ahead of June reopening

May 18, 2022
Erbil Airport houses new dnata cool-chain facility, cargo warehouse
Airports

Erbil Airport houses new dnata cool-chain facility, cargo warehouse

May 18, 2022
XPO facility with conveyors
Freight Forwarders

Consultant Insight: XPO Logistics may sell its freight forwarding division

May 17, 2022
Next Post
SATS, TUMCREATE team up to create AI-powered robotic air cargo system 

SATS, TUMCREATE team up to create AI-powered robotic air cargo system 

By subscribing you agree to our Terms of Use and Privacy Policy

FROM OUR CONTRIBUTORS

XPO facility with conveyors

Consultant Insight: XPO Logistics may sell its freight forwarding division

May 17, 2022
LATAM Cargo adding new Mexico-Brazil route, carbon offset program

Consultant Insight: Mexico City airspace safety is a growing concern

May 9, 2022
House passes $25 billion postal service bill opposed by Trump

Consultant Insight: USPS spends more on transportation in FY2021

May 4, 2022

SPONSORED

Singapore Changi Airport: Taking your Pharma Business Further - Image 2

Singapore Changi Airport: Taking your pharma business further

November 9, 2021
ULD

CODEX by Virtual Control fills gaps in cold-chain shipment visibility

July 2, 2021
Digitizing the ULD transfer process and protecting shipments with Virtual Control

Digitizing the ULD transfer process and protecting shipments with Virtual Control

May 14, 2021
  • About Us
  • Help Center
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Follow Us

twitter twitter linkedin podcast

© 2022 Royal Media & Air Cargo World

No Result
View All Results
  • News
    • All News
    • Airports
    • Carriers
    • E-Commerce
    • Express
    • Freight Forwarders
    • Technology
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Cargo Facts EMEA
    • Cargo Facts Symposium
    • Cargo Facts Asia
  • Webinars
  • Podcasts
  • Magazine
  • Archives
  • Subscribe Test
  • Log In / Account

© 2022 Royal Media & Air Cargo World

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Powered By MemberPress WooCommerce Plus Integration
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
AWSALBCORS7 daysThis cookie is managed by Amazon Web Services and is used for load balancing.
cf_use_obpastCloudflare sets this cookie to improve page load times and to disallow any security restrictions based on the visitor's IP address.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
CRAFT_CSRF_TOKENsessionThis cookie is set by the provider Craft CMS. This cookie is used for the purpose of website security that is Cross-Site-Request forgery prevention whenever a form is used.
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
bcookie2 yearsLinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie2 yearsLinkedIn sets this cookie to store performed actions on the website.
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
langsessionLinkedIn sets this cookie to remember a user's language setting.
li_gc2 yearsLinkedIn uses to store consent of guests regarding the use of cookies for non-essential purposes
lidc1 dayLinkedIn sets the lidc cookie to facilitate data center selection.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
AWSALB7 daysAWSALB is an application load balancer cookie set by Amazon Web Services to map the session to the target.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
_dc_gtm_UA-1038974-181 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
ig_putmasessionNo description
Save & Accept
Powered by CookieYes Logo
Go to mobile version