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“Parcel shipping reaches 103bn in volume globally, and is likely to more than double by 2026” - Pitney Bowes Parcel Shipping Index
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COVID-19 has changed the way the transport industry operates, with many countries restricting travel both internationally and locally. The impact of the pandemic has also forced companies to assess the stability of their supply chains, in particular international trade.
One sector, however, saw a 7.2% increase between February and August 2020. Courier companies saw this impressive increase in activity due to the rise in online shopping as a result of the “stay at home” order. 2020 is set to show 23% growth in this sector; the biggest increase in over 5 years, according to Mintel (an intelligence agency).
4 in 10 Brits report to have done more internet shopping since the start of lockdown. With many people working from home, shops closed and travel restricted, home deliveries have never been more desirable. This “meteoric” rise in online shopping is expected to continue, driving greater growth for courier and delivery services.
Growth in this sector is particularly impressive as many businesses shut down during lockdown, limiting both outgoing and incoming deliveries. As lockdown restrictions lift and more businesses open, growth is set to continue.
This rise in demand has resulted in the parcel service DPD massively increase its order for new vehicles. They have tripled their standard order of Actros tractor units from 50 to 150 and plan to invest a staggering £260 million on increasing their output capacity. They hope that this investment will result in 6,000 new jobs in the UK. UPS and Fed-Ex have both seen a growth in demand, but they have admitted that there aren’t enough vans available to keep up with demand. Similarly, supermarkets like Iceland have seen a dramatic increase in orders for delivery and as a result, Iceland have ordered 250 Mercedes Sprinter 314 refrigerated vehicles.
