Pitney Bowes report shows global growth of parcel industry

Global e-commerce, shipping, mailing, data and financial services technology company Pitney Bowes has released its latest Parcel Shipping Index report, which found that global parcel volume surpassed 100 billion in 2019, reaching 103 billion.

The 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 lb) in 13 major markets, representing 3.8 billion people in the USA, Canada, Brazil, Germany, UK, France, Italy, Norway, Sweden, China, Japan, Australia and India.

Other highlights from the annual report include that more than three of every five parcels shipped in the world’s major markets are generated by China, while over 3,000 parcels were shipped every second in 2019, in the world’s 13 major markets.

The report forecasts parcel volume is likely to more than double and reach 220-262 billion parcels by 2026, with a 14.8% CAGR (compound annual growth rate) for 2020-2024. Due to increased uncertainty fueled 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.

The Index also highlights the advance of Amazon Logistics as a major market player, delivering 1.9 billion packages in the USA alone through its in-house delivery network, showing 155% parcel volume growth in 2019 year-on-year and forecasting its CAGR at 30% from 2020-2024.

Amazon Logistics has been rapidly increasing its delivery capacity in the USA and expects to compete for external business with traditional carriers. This effort has been stalled somewhat in 2020 due to Covid-19 and the significant increase in Amazon’s own shopping volume. Amazon’s overall US parcel volume (including Amazon Logistics Network and parcels given to USPS and other carriers) increased by 22% year-on-year.