Priority on Priority Mail
Domestic Air Industry Up
Regionalization of Commerce
- Domestic air revenue rose by 5 percent year-over-year. However, since shipment growth totaled 3.2 percent, it appears much of the revenue gains came from the impact of fuel surcharges. In fact, it is likely that fuel surcharges are actually retarding the growth of the underlying rate structure.
- In 2005 more than 56 percent of all overnight air shipments and 66 percent of second-day air shipments moved less than 350 miles to their destinations. This continues the trend towards the regionalization of U.S. commerce and represents service boundaries where ground parcel and less-than-truckload (LTL) truckers offer competitive transit times usually at lower rates. Despite that, air package traffic grew at a significantly faster rate than ground parcel traffic during 2005.
- USPS, UPS and BAX Global grew their shipments in 2005 at a faster rate than the industry average (3.2 percent). FedEx Express, with 2.8 percent growth, gained at a slower pace. DHL Express, beset by service issues surrounding its hub consolidation program in late 2005, reported a 1.4 percent decline in shipments year-over-year.
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