Global parcel volume exceeds 100 bn for first time ever: Pitney Bowes shipping index
Pitney Bowes, a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing, data and financial services, released the latest Pitney Bowes Parcel Shipping Index.
October 13, 2020: Pitney Bowes, a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing, data and financial services, released the latest Pitney Bowes Parcel Shipping Index. The annual report found that global parcel volume surpassed 100 billion in 2019, reaching 103 billion. More than three of every five parcels shipped in the world’s major markets are generated by China. Over 3,000 parcels were shipped every second in 2019 in the world’s 13 major markets.
The report forecasts parcel volume is most likely to more than double and reach 220-262 billion parcels by 2026, with a 14.8 percent CAGR for 2020-2024. Due to the uncertainty in the market fuelled by the global pandemic, the forecast provides a range that shows volumes could be as low as 200 billion or as high as 316 billion parcels in six years.
Released today, check out the 2019 Parcel Shipping Index for global parcel data including parcel volume, parcels shipped per second, and more. https://t.co/IkSTsZtwZ3 #ShippingIndex pic.twitter.com/10hzxScoy0— Pitney Bowes (@PitneyBowes) October 12, 2020
The Pitney Bowes Parcel Shipping Index measures volume and spend for business-to-business, business-to-consumer, consumer-to-business and consumer-consigned shipments with weight up to 31.5 kg (70 lbs.) in 13 major markets, representing 3.8 billion people in the U.S., Canada, Brazil, Germany, UK, France, Italy, Norway, Sweden, China, Japan, Australia and India. Based on proprietary and published data, the Index has become a valued industry benchmark and a reliable source of accurate forecasting since the inaugural report in 2015.
Index reveals 17.7 percent growth in parcel volume in 2019 with 3,248 parcels shipped every second.
The latest report reveals growth of 17.7 percent in 2019, in line with the 17-28 percent growth projection range given in previous Parcel Shipping Index reports. On average, 3,248 parcels were shipped every second in 2019 in the world’s 13 major markets, equating to an average of 27 parcels shipped per person. China remains the strongest influence on the market with 63.5 billion parcels shipped in 2019 and an increase of 26 percent in parcel volume year-over-year. Excluding China, parcel volume increased by 6.7 percent, from 37 billion in 2018 (including Amazon Logistics volume in the US) to 39 billion in 2019. Global parcel revenue increased by 9 percent year-over-year from $323 billion in 2018 to $351 billion in 2019, at a CAGR of 11 percent during 2013-19.
India has the third highest percentage increase after China and Norway, experiencing growth of 19 percent in parcel volume, shipping 2.8 billion parcels and reaching a CAGR of 22 percent since 2013. Retailers like Amazon, Alibaba, Walmart and international carriers like DHL, FedEx are expanding their operations and investing in innovations to meet the growing parcel deliveries. In January 2020, Amazon India announced its plan to deploy 10k EVs (electronic vehicles) by 2025, as an integral milestone to become an energy efficient courier.
Since the outbreak of the Covid-19 pandemic and complete lockdown during March till May 2020, the Indian Ecommerce and parcel delivery sectors were severely hit as the government allowed e-commerce companies to fulfill only essential orders such as groceries, medicines etc. In mid of May, the Indian government allowed the e-commerce firms to resume full operations, which led to a surge in volume.
China extended its global lead in parcel volume, with 63 billion parcels and growth of 26 percent year-over-year, although this growth has declined from the 48-61 percent growth seen from 2012-16. A CAGR of 38 percent was reached from 2013-2019. China’s parcel volume is more than four times that of the United States, its nearest country in terms of volume.
Jason Dies, EVP and vice president sending technology solutions, said, “While parcel volumes keep rising, carriers are racing to keep up with competition and with consumer demand, delivering innovative new customer experiences, digitalizing technologies and investing in infrastructure, all while generating sustainable revenues. Although we won’t document the full impact of the coronavirus pandemic on the industry until next year’s report, in April alone the USPS noted a 60 percent rise in parcel volume across the US. Our Index has a track record of accurate forecasting, and our adjusted forecasts of parcel volume reaching 220 – 262 billion by 2026 demonstrate the phenomenal growth expected across the industry.”