Logistics Trends: Fedex to Handle More Ground Shipments than Air in '05

Narrowing gap between air and surface shipments an ongoing trend, Colography Group reports


Narrowing gap between air and surface shipments an ongoing trend, Colography Group reports















  • U.S. domestic ground parcel shipments rose to 3.94 billion in 2004, up from 3.73 billion in 2003. FedEx Ground gained the most market share year-over-year, with DHL Expressthe combined DHL/Airborne Expressincreasing its share slightly. UPS remained the market leader, but its year-over-year share dipped slightly.


  • Total LTL shipments rose by approximately 5.4 million to 127.2 million. Revenue rose $2 billion to $20.09 billion. Of the five "super-regional" carriers FedEx Freight, Overnite Transportation, ABF Freight System, the Con-Ways and USFreightways FedEx Freight, ABF Freight and the Con-Ways gained shipment share year-over-year. Yellow Roadway, the lone national carrier, lost shipment share year-over-year.


  • Domestic air shipments in 2004 totaled 2.45 billion and generated revenue of $31.84 billion. This represented a year-over-year decline in shipment count but an increase in revenue, underscoring the impact of fuel surcharge pass-throughs on carriers' revenue streams. The U.S. Postal Service held the largest shipment share, followed by FedEx Express, UPS Air and DHL.


  • Due to fuel surcharge pass-throughs, revenue for the average overnight air shipment rose strongly in 2004, ending the year at $18.11. Revenue for the typical deferred air shipment also increased through 2004, ending the year at $9.19.


  • U.S. air exports posted robust gains in 2004, with shipment count climbing to 85.5 million from 79.2 million in 2003. Revenue rose strongly to $8.4 billion from $7.5 billion in 2003.





Additional Articles of Interest

For more information on the latest trends in the logistics space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.


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