Despite a widespread decline in shipment volumes reported by the 2023 Pitney Bowes shipping index, logistics giant, Amazon, notably defied the trend with its continued growth.
In 2023, Amazon Logistics delivered more packages than UPS for the first time ever in the index’s history.
On the backdrop to this index release, Locate2u previously reported the US Postal Service (USPS) awarded UPS with an air cargo contract, replacing FedEx. This will see UPS Postal Service’s primary air cargo provider and move most USPS air cargo in the US. The competition is on.
USPS leads in parcel volume
The Pitney Bowes shipping index reports that in the past seven years, the US parcel market has been growing in volume at a 9% average rate.
Here are some carrier volume highlights:
- USPS led in parcel volume with 6.6 billion parcels, a slight decrease of 0.9% from last year.
- Amazon Logistics delivered 5.9 billion parcels, marking a 15.7% increase and surpassing UPS for the first time.
- UPS experienced a 10.3% drop, shipping 4.6 billion parcels. FedEx also saw a decrease, down to 3.9 billion parcels from 4.1 billion, a 6.1% reduction.
- The ‘Others’ category saw a significant growth of 28.5%, rising from 0.4 to 0.6 billion parcels.
We see Amazon innovating for parcel delivery. Doug Herrington, CEO of Worldwide Amazon Stores, says the faster the company can get products to customers, the more likely they are to buy them.
In February, Amazon achieved a business milestone: It delivered to Prime members in the fastest speed ever globally.
Parcel revenue market
UPS leads the parcel revenue market with a 35% share, down 2 percentage points from last year. FedEx follows closely with a 32% share. USPS holds steady at 16%. Amazon Logistics has grown, reaching a 14% share after a 2 percentage point increase. The ‘others’ category, representing smaller carriers, rose from 2.1% to 2.8%.
Earlier this month, Locate2u reported FedEx and UPS are set to introduce delivery surcharges in 82 ZIP codes, primarily covering sections of major urban centers. There are many reasons logistics providers implement delivery charges. This includes fuel costs, special handling needs, and high-demand periods.
Innovate to stay ahead in the game in shipping
Companies globally continue to innovate to deliver fast to customers. Recently DoorDash partnered with Lowe’s. The collaboration will provide on-demand delivery services from over 1,700 stores across the US.
We also see that drones are making waves in the logistics world. Companies are noting the speed of delivery this technology provides. Businesses like Walmart are staying ahead in the delivery game by expanding drone delivery. The retail giant has done this in Texas by expanding its drone delivery to 1.8 million more homes in Dallas Fort-Worth.
Dronamics, the world’s first cargo drone airline, is ‘flying high’ to make. The business secured $10.8 million in a funding agreement with the European Innovation Council. Dronamics has committed itself to enabling universal access to same-day delivery services worldwide.
Last month, the UK government released a policy report outlining its vision to become a world leader in drone delivery.
Photo Credit: Canva
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
