Advancing Technology Prompts Major Changes to the Mail Delivery Industry

Over the course of the last decade, the courier, express, and parcel (CEP) industry has witnessed high growth rates across the world.

The wider spread of technology and the development of internet infrastructure have greatly contributed to the market, and e-commerce services are now a major growth driver of the CEP market, generating significant revenues for the industry.

Additionally, the evolution of technology is reshaping the entire supply chain and reinventing the parcel industry as online shopping has led to an increase in e-commerce sales across borders.

This has resulted in the growth of international B2C shipments across the world. Besides e-commerce, the emerging trends of omnichannel retailing in certain countries and growth in trade driven by economic expansion are also some of the drivers of the CEP industry.

According to data provided by Mordor Intelligence, the courier, express, and parcel (CEP) market is expected to be valued at more than USD 400 Billion by 2024 while expanding at a CAGR of 8-10% during the forecast period (2019-2024).

Now, in a time of a pandemic, CEP companies are playing a crucial role in helping maintain many business operations and the economy.

Private-sector carriers such as United Parcel Service and FedEx are not capable of filling the demand for all manner of goods to be delivered to consumers, and many rely on mail-order pharmacies, too.

This is where the Postal Service comes in. The United States government has decided to cut the budget of the agency, however, and among the specifics regarding the new instructions provided by the Federal Government are major changes to operations, such as leaving mail at delivery centers if it might delay carriers, ending extra and late trips (which help ensure all mail moves swiftly) and limiting parking points where carriers park their vehicles and walk to make deliveries.

Critics claim these measures will delay the mail and hurt competitiveness.

YRC Worldwide Inc.  is a holding company of a portfolio which includes companies including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company HNRY Logistics.

Earlier last week the Company announced Holland has been awarded two 2020 Logistics Management Quest for Quality Awards in the Expedited Motor Carriers and South/South Central Regional LTL Carriers categories.

Each year, the Logistics Management Quest for Quality polls subscribers to rate transportation and logistics service providers in performance, value, information technology, customer service and equipment & operations.

United Parcel Service, Inc. and CVS Health Corporation announced back in April UPS subsidiary UPS Flight Forward (UPSFF) will use drones to deliver prescription medicines from a CVS pharmacy to The Villages, Florida for the largest U.S. retirement community, home to more than 135,000 residents.

The service will use Matternet’s M2 drone system.

Drone transport offers a fast delivery option for medicines that are time-sensitive, while supporting social-distancing efforts. Drone delivery options provide individuals with a convenient alternative to visiting a pharmacy.

This program can also help prioritize the protection of our healthcare heroes.

FedEx Corporation reported back in June is providing essential supply chain services to support the fight against COVID-19. FedEx is supplying Medline personal protective equipment (PPE) from a FedEx Logistics facility located in the Panama Pacifico Free Trade Zone and Panama, to hospitals in South AmericaCentral America and the Caribbean.

Medline is a manufacturer and distributor of medical supplies and clinical programs.

To date, over 850,200 face masks have been shipped to hospitals throughout the region with help from FedEx Express, the world’s largest express transportation company.

Air Transport Services Group, Inc. through its subsidiaries, operates in the airfreight and logistics industry.

The company owns and leases cargo aircraft to airlines and other customers. It also provides airline operations to delivery companies, airlines, e-commerce operators, freight forwarders, and the U.S. Military, as well as operates charter agreements.

Back in July the Company reported that it deployed a Boeing 767-300 converted freighter in June in support of the DHL Express network in Asia under the terms of a stand-alone ACMI agreement with DHL-Bahrain.

This agreement is to provide capacity support for general express freight and delivery of COVID-19 related relief supplies to Sydney, Australia.

ATSG subsidiary Air Transport International (ATI) is operating the flights from Hong Kong to Sydney via Guam.

An additional Boeing 767 has been deployed under a separate ACMI agreement between DHL Express and ATSG to serve routes from Chicago O’Hare Airport (US) to Cologne Bonn Airport (Germany) via East Midlands Airport (England).

ATSG subsidiary ABX Air is operating this route to provide DHL additional capacity to meet the high level of service expected within its network.

The freighters are leased from ATSG subsidiary Cargo Aircraft Management (CAM) and bring ATSG’s support of DHL’s network to sixteen Boeing 767 aircraft.

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