IPC: parcels now account for over 50% of revenue for some posts.

IPC: parcels now account for over 50% of revenue for some posts.

According to preliminary results published by International Post Corporation (IPC), full-year 2020 results show considerably lower growth of 1.6%  compared to 5% growth reported for the full year 2019 in the IPC Global Postal Industry Report in November 2020.

These results have been significantly impacted by the COVID-19 crisis.

As in previous years, the main growth driver for posts was parcels, fuelled by cross-border and domestic B2C e-commerce. Mail volumes and revenue declined further for many posts as the COVID-19 crisis accelerated e-substitution. For some posts, parcels growth did not suffice to offset the strong mail decline. Diversification also continues to play an important role for posts as mail services share of industry revenue continues to decline.

Holger Winklbauer, CEO of IPC said: The COVID-19 crisis has been an accelerator of the structural trends in the postal sector. As mail volumes further declined, especially advertising mail, parcels now account for over 50% of revenue for some posts. Posts also saw costs increase as they had to adapt operations during the COVID-19 pandemic. The ongoing shift towards parcel operations leads to investments which continue to focus on parcel sorting capacity and automation, as well as expanding parcel locker networks. Posts launched new e-commerce delivery services to meet consumer demands during the COVID-19 crisis. These activities have the potential to strengthen the postal sector in the future”.

The complete 2020 results as well as results for the first half of 2021 will be presented in the IPC Global Postal Industry Report, which will be published in November 2021. The report will include a comprehensive and detailed review of the postal industry, covering over 50 postal operators worldwide and analysing key market trends and consequences from the COVID-19 crisis. A publicly available summary, the IPC GPIR Key Findings, will also be published in November.

For more information on the IPC Global Postal Industry Report, please visit: http://www.ipc.be/en/programmes/market-intelligence/global-postal-industry-report

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