US parcel revenue sees first decline in 7 years, report finds- U.S. Parcel volumes increased YoY by 0.05% from 21.5 billion in 2022 to 21.7 billion in 2023
- U.S. parcel revenue fell 0.03% from $198.4 billion in 2022 to $197.9 billion in 2023
- Trend of increased volume with lower revenue highlights an increasingly competitive carrier landscape
Peak season is multiplying: How can logistics respond?- Carriers are transitioning from one-time seasonal surcharges to more complex pricing systems
- Carrier-based solutions that allow businesses to have flexibility are highly advantageous
- Regional carriers are gradually becoming a popular and convenient solution to volume and price volatility
FedEx and UPS Publish GRI- FedEx increased its minimum charge for next-business-morning deliveries (Priority Overnight) by 7.9%
- UPS increased its minimum charge for its next-business-day service by 7.91%
- All General Rate Increases (GRI) exclude increases in surcharges
Consumers willing to pay premium for fast, precise peak deliveries- 50% of consumers are willing to pay a $9 per-package premium to receive next-day deliveries during peak-season
- 39% of global merchants are planning to begin using shipping insurance this holiday as concerns of package theft rise
- 49 million Americans have had at least one package stolen in the past 12 months
The parcel Santa surcharge wars- Peak demand-based delivery surcharges are $7.40 per-package for FedEx Express, excluding all other accessorial fees
- Roughly 1.75 million parcels per day will be subject to residential delivery surcharges
- Fuel surcharges are likely to rise with increasing gas prices
Growing Freight Fraud is Peeling Millions From the U.S. Shipping Market- $500 million to $700 million of shippers’ and brokers’ freight payments are going to double brokers annually
- In 4Q 2022, online freight marketplace Truckstop.com said complaints about fraud, including double-brokering, increased 400%
- Freight fraud has impacted the flow of goods to warehouses and in turn delayed shipments to consumers