Tag: UPS

Although it makes up only a small portion of cargo traffic, the express delivery service is generating substantial worldwide employment and revenue.

This industry is expected to grow faster than its counterparts in other cargo sectors – air and ocean – between now and 2010.

The International Air Transport Association (Iata) has estimated that the global air cargo will grow at an average of 5.3 per cent for the 2006-2010 period, while ocean freight is expected to increase by 7.2 percent.

But Teong said the local express delivery industry will grow at an average of 10 per cent per year, and is expected to continue to expand rapidly as the country becomes more developed.

Local courier firm City-Link Express (M) Sdn Bhd, for one, expects its 2007 revenue to grow by 10 per cent, while GD Express Carrier Bhd (GDEX) sees its revenue growing in the range of 20-30 per cent.

Revenue growth of global express firms such as DHL Express, meanwhile, is expected to outpace the industry average. Its Malaysian operation has been registering a growth of 15-20 per cent in revenue in the last few years.

Recognising the lucrativeness and potential of this industry, Malaysia Airlines’ air freight unit, Malaysia Airlines Cargo Sdn Bhd, is working on introducing an express delivery product this year.

There are currently 114 licensed express delivery players in Malaysia. The market is led by the four major foreign players – FedEx, UPS, DHL Worldwide Express and TNT, which combined capture a 60 per cent share of Malaysia’s RM1 billion express delivery business, with the rest coming from local courier players. “The top 10 players already have a 95 per cent control of the market. The other smaller players only offer despatch services,” Teong pointed out.