Parcel mergers could relieve price pressure
Recent acquisitions in the express parcel industry will help alleviate downward pressure on rates, according to Petar Cvetkovic, CEO of Target Express.
The wave of consolidation that happened a few months ago was for “negative reasons” as franchise operations such as Hellmann and NCN went bankrupt, Cvetkovic said. “They were offering low headline rates that were not sustainable.”
In the last few weeks, UPS has acquired Lynx and Amtrak bought Nightspeed to grow their respective networks – a positive development for the sector, he believed.
Top-line revenue was failing to match volume growth at Target in the year to date, admitted Cvetkovic. He was strongly critical of one company “on a suicide mission” which, without even looking at copy invoices, had told shippers that whatever they were paying, it would charge 20% less.
