Colography: Domestic shipments moving shorter distances

Colography: Domestic shipments moving shorter distances    More than half (55.7 percent) of all U.S. domestic overnight air shipments in 2004 traveled less than 350 miles to market, according to a new survey published by the Colography Group.
   The Atlanta-based cargo market consulting group said 36 percent of all air shipment volumes moved within a 150-mile radius, while 58 percent of all ground parcel deliveries were made within 350 miles and 36.2 percent of which moving within 150 miles.
   “The trend towards shorter lengths of haul continues apace, with even air freight services traditionally used to move products over long distances being affected,” Colography said.
   Colography compiled its “National Survey of U.S. Expedited Cargo” by interviewing more than 41,000 “decision makers” in companies controlling about 75 percent of the market.
   Other findings of the survey included:
   * 14.5 percent of U.S. ground parcel shipments and 13.7 percent of U.S. domestic air shipments were tendered through “Retail Customer Access Points” such as drop boxes, service centers, retail outlets such as FedEx Kinko’s and the UPS Store, and carrier docks.
   * Overnight letters accounted for about 57 percent of all U.S. overnight air volume, and 40.6 percent of second-day air shipments. FedEx Express controlled 41 percent of the domestic overnight air letter market in 2004. UPS was second with a 34 percent share.
   * 87.6 percent of overnight air deliveries were made by noon next day.
   * Business-to-business commerce accounted for 80.1 percent of domestic air shipments and 77.3 percent of ground parcel shipments.
   “Retail outlets such as the UPS Store, FedEx Kinko’s and the U.S. Postal Service counters are wielding increasing clout in shipping and distribution,” Colography said.
   “The air letter market remains resilient despite dire warnings it would be overtaken by the growth of fax and e-mail services … Buyers of overnight air services find compelling value in enhanced delivery velocity, and they will pay a premium to have goods in hand as quickly as possible,” concluded Colography.