Survey predicts DHL parcel gains in U.S. market
A just-released 2004 survey of international and domestic shippers by JPMorgan said that DHL 'appears poised to capture' as much as 18 percent of U.S. shippers' parcel spending in 2006.
In 2004, the JPMorgan transportation survey showed that UPS captured 47 percent of all parcel spending, down only slightly from 48 percent in 1999, and that FedEx ranked next highest with 31 percent, up from 29 percent in 1999. Next year and beyond, the survey predicted that DHL will gain as UPS, FedEx and the U.S. Postal Service decline.
'However, potential share gains could prove costly for DHL, which has been recording losses in the U.S. market and enjoys fewer economies of scale than competitors UPS and FexEx,' the survey noted.
The survey of shippers reported that international transportation should increase from 24 percent of shippers' budgets to 28 percent by 2009, benefiting global freight forwarders and parcel carriers.
Parcel prices are expected to increase in 2005 by an average of 4.3 percent, up from 3.8 percent in 2004.
The percentage of outsourced supply chain operations, now 18 percent, is expected to increase to 22 percent over the next five years, which will mean additional growth for third-party logistics providers.
As for e-logistics, 25 percent of shippers responding to the JPMorgan survey said they have used an Internet-based logistics freight service, up from 16 percent in 2002 and 11 percent in 2001, and 58 percent expect to use more e-logistics providers next year.
The JPMorgan airfreight and surface transportation survey was prepared by analysts Gregory Burns, Brannon Cook and Hassan Malik.
Survey predicts DHL parcel gains in U.S. market
