While still dominated by the likes of DHL Express, FedEx and UPS, the express and small parcel market is going through changes which it has not seen since the 1990s when the market underwent a period of mergers and acquisitions.
During that time, these providers expanded their service offerings to provide a "one-shop" approach for supply chain needs.
The market is evolving yet again for a number of reasons, including:
- A slow growing global economy
- Improvements in technology resulting in companies being able to better rationalise logistics and transportation needs
- The growth of e-commerce
- Changing needs and products in vertical sectors
- Rising competition within the express and small parcel market
Along with these reasons, consolidation has been debated for several years particularly with a focus on TNT Express as the target.
The Dutch provider has undergone changes to its organisation. In 2010, TNT NV separated its divisions into two separate companies: Mail and Express. TNT NV retained a 29.9% minority financial shareholding in TNT Express. In 2012, UPS announced intentions to acquire the company but in early 2013 the European Commission ruled against the merger.
It now appears that an acquisition of TNT Express is no longer on the table; major integrators and other entrants to the express and small parcel market are instead focusing on expanding parcel volumes by introducing new service solutions, as well as making partnerships and smaller regional acquisitions to expand into targeted countries, regions and sectors.
1.0 Executive Summary
1.1 Executive Summary
2.2.2 Asia Pacific
2.2.3 Middle East
2.2.4 North America
2.2.5 South America
2.2.6 Western Europe
2.3 Express Market Development
2.3.1 3D Printing
2.3.2 Growth of e-commerce
2.4 Rationalisation of Needs
3.0 Changing Delivery Options
3.3 Increasing Competition
3.4 Post Offices
3.4.1 Post Office Volumes
3.5 Regional Parcel Carriers
3.6 The Amazon Factor
4.0 The Integrators
4.1 The Integrators
4.2 TNT Express – A Return to Basics
4.3.1 FedEx and UPS – Domestic Volumes
4.3.2 FedEx and UPS – Domestic Revenue
4.4 International Volumes and Revenue
4.5 Global Time Definite Market
5.0 Global and Regional Market Size and Forecast
5.1 Global Market Size
5.2 Regional Market Size
5.4 Asia Pacific
5.4.4 Southeast Asia
5.5.4 Central and Eastern Europe
5.5.2 Russia, Turkey and Other Europe
5.5.3 Western Europe
220.127.116.11 United Kingdom
5.6 Middle East
5.7 North America
5.7.3 United States
5.8 South America
6.0 Express Provider Profiles
6.1 Leading Express and Small Parcel Providers
6.1.1 Logistics Service Provider Audit
6.2 Deutsche Post DHL
6.2.1 DP DHL Strategy
18.104.22.168 DHL Express - Finances
22.214.171.124 DHL Express - Operations
6.4 TNT Express
6.6 China Post
6.7 Japan Post
6.8 La Poste
6.9 Royal Mail
6.9.4 General Logistics System
6.12 SG Holdings
6.13 Toll Global Express
7.1 Challenges in Defining the Express and Small Parcel Market
7.2 Market Sizing by Country
7.2.2 Asia Pacific
7.2.3 Central and Eastern Europe
7.2.4 Middle East
7.2.5 North America
7.2.6 South America
7.2.7 Western Europe
The major express and small parcel providers - DHL Express, FedEx, TNT Express and UPS are facing challenges in a changing market as well as increasing competition from such institutions as post offices. This developing market has been brought about by a shift in economic conditions throughout the world as well as the rise of e-commerce, that is, online retailing.
Quite likely the growing acceptance of 3D printing will also bring additional unimaginable changes. Express services, international and domestic, are indeed changing. International express, which typically involves the time-definite movement of goods via air (planes owned or leased), have altered for some providers. For example, product selection has shifted away from “premium” solutions. In other words, customers have become more price conscious.
This has added pressure to providers' margins and has resulted in changes such as rate adjustments and service levels. In addition to these developments, emerging markets within Africa, Asia Pacific, the Middle East and South America are experiencing growth in express and small parcels particularly as manufacturing moves into these markets and as a result of growing domestic demand.
Domestic express, which typically involves time-definite road solutions, has also seen changes - delivery times and delivery locations are expanding as an increasing number of options are made available to a consumer who now shops not only at a physical store, but also online via a laptop, smartphone and/or tablet.
Meanwhile, the post office, which has witnessed the demise of its major revenue-generator, the letter, has embraced the growth of e-commerce and now is eying the parcel as its new growth opportunity. Many post offices are expanding facilities to sort and distribute parcels as well as introducing eCommerce parcel related solutions to meet the needs of consumers.