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

  • 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.