Global postal revenues increased 2.1% on average in 2024 on the strength of parcel shipping, according to preliminary results published Thursday by the International Post Corporation.
“Posts’ efforts to increase efficiency while at the same time capture e-commerce growth, paid off. The overall economic uncertainty continues, however, to put pressure on posts,” who must continue to pursue transformation, said Holger Winkbauer, the CEO of IPC, in a news release.
The report covers postal operators in 49 countries.
While global letter mail volumes dropped, reflecting continuing digital substitution, parcel volumes are rebounding, driven by online shopping and cross-border e-commerce flows. Postal operators are expanding e-commerce services to capture this trend. In Asia Pacific, a growing middle class and urbanization are driving parcel demand.
Regulatory obligations such as universal service mandates and certain price caps continue to constrain pricing flexibility, especially for legacy mail networks and in rural areas, the IPC report said.
Despite wage pressures and fuel prices, parcel unit prices have been under competitive pressure. The postal industry is responding to the difficult operating environment by optimizing networks, diversifying in areas such as financial services and logistics, investing in automation and digital platforms to increase efficiencies and improve service.
Managing costs and sustaining parcel momentum are keys to maintaining posts’ financial viability, the IPC said.
The U.S. Postal Service, for example, is implementing a restructuring plan called Delivering for America that includes streamlining ground and air transportation, and distribution centers. But the agency has less flexibility to address financial shortfalls than mail systems in other countries, the Office of Inspector General found earlier this year.
In 2023, postal operators collectively experienced a 1.5% increase in revenues.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
RELATED READING:
US ranks low among international postal services on financial flexibility
US Postal Service expands new delivery standards nationwide
US parcel market to grow 36% by 2030, Pitney Bowes says
The post Parcels drive 2% global revenue gain for postal operators appeared first on FreightWaves.
