- 30 November 2018
- Transport / Logistics Services
The International Postal Corporation (IPC) has published its Global Postal Industry Report that shows the global postal industry is on track, overall, for future growth.
According to the IPC report, the sector saw 2.6% revenue growth this year that accelerated in the first half of 2018 to an increase of 4.6% year on year. Ongoing e-substitution and e-commerce growth continued to widen the performance gap across business units, with revenue down 2.3% for mail and up 11.0% for parcels. Profitability remained strong for both divisions, with efficiency initiatives, network optimisation and capacity investment set to continue in the years ahead.
Holger Winklbauer, CEO of IPC said: “E-commerce continues to fuel the industry. Posts are delivering more packets and parcels than ever before. While growth rates ranged widely, more than two thirds of posts saw stable or increasing revenues during the year and most cited parcels and express as a key growth driver.
“Digitisation remains the key driver of structural mail volume decline across the industry, though growth in small and lightweight e-commerce packets has helped ease the fall. In 2017, the average decline in mail volume slowed to 4.6% compared to 5.2% in 2016.”
While mail volumes fall the three main sources of growing industry revenue are parcels and express financial services and logistics and freight. Mail still represents 40% of their business overall, though its general decline (75% of postal operators are seeing a fall in volumes) is forcing postal operators to look at growing threads of business.
The above insights are published in IPC’s publicly available Key Findings report , which provides a distillation of data and analysis included in the full IPC Global Postal Industry Report 2018.