Ti's Report: Global Express Parcels Market Size 2011
Press release from Ti
Figures published today in Global Express Parcels 2011, the latest report from Ti, reveal that the market for express parcels grew by nearly 7% in 2010 to reach €141,555m. The level of growth went some way towards correcting the significant fall in value the year before (10.6%) although the market is still considerably below the peak in 2008.
Although the market as whole rebounded strongly, performance from market to market was very patchy. Overall the international express parcels sector performed better than its domestic counterpart, showing strong growth throughout all regions as international trade rebounded on the back of inventory re-stocking. The trend was consolidated by a hardening of rates and the migration of shippers to higher value products, although there is still a great deal of caution.
Domestic operations, especially in Europe, had a much tougher time. Although experiencing some levels of growth, volumes were still subdued in many markets. The one exception was in the online shopping sector, where all B2C express companies benefited from a surge in demand from consumers.
This trend was especially acute in China, where express companies’ capacity failed to keep up with demand, leaving many shoppers dissatisfied with levels of quality and their parcels delivered late for the holiday period.
As well as the economic challenges, the report analyses the range of external pressures the industry faced in 2010. These included volcanic ash clouds in Europe; terrorist activity, security fears as well as bad weather. Rising fuel costs in 2011 and instability in the Middle East look set to be the main challenges in 2011.
Commenting on the state of the market, John Manners-Bell, Ti’s CEO said, “The rebound in 2010 came as a relief to the express industry which was particularly hard hit by the recession. However, although parts of the sector have flourished, this is not an across-the-board recovery by any means. Whilst carriers are doing better in Asia and North America, they are still struggling in parts of Europe, especially in the domestic market. ”
Looking forward, Manners-Bell concluded: “Despite this, the future for the industry is relatively bright. Economic growth has returned and fears of a double dip recession have proved unfounded. 2011 certainly won’t be easy, but express operators – especially those present in emerging markets – have every reason to be optimistic.”
For further information please contact Sarah Smith, T: +44 (0) 1666 519900 or E: [email protected].
