Global Express and Small Parcels 2014

Type:  Announcements  

Global Express and Small Parcels 2014 - Key Players - DHL, FedEx, TNT, UPS, China Post, La Poste, Royal Mail

While still dominated by the likes of DHL Express, FedEx and UPS, the express and small parcel market is going through changes which it has not seen since the 1990s when the market underwent a period of mergers and acquisitions.

During that time, these providers expanded their service offerings to provide a "one-shop" approach for supply chain needs.

The market is evolving yet again for a number of reasons, including:
- A slow growing global economy
- Improvements in technology resulting in companies being able to better rationalise logistics and transportation needs
- The growth of e-commerce
- Changing needs and products in vertical sectors
- Rising competition within the express and small parcel market

Along with these reasons, consolidation has been debated for several years particularly with a focus on TNT Express as the target.

The Dutch provider has undergone changes to its organisation. In 2010, TNT NV separated its divisions into two separate companies: Mail and Express. TNT NV retained a 29.9% minority financial shareholding in TNT Express. In 2012, UPS announced intentions to acquire the company but in early 2013 the European Commission ruled against the merger.

It now appears that an acquisition of TNT Express is no longer on the table; major integrators and other entrants to the express and small parcel market are instead focusing on expanding parcel volumes by introducing new service solutions, as well as making partnerships and smaller regional acquisitions to expand into targeted countries, regions and sectors.

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