Although 2014 ended with a rough winter season, carrier revenues across LTL and Parcel service providers continued to grow during the year and 2015 looks stronger going forward. LTL service providers generally saw revenue increases in the 4%-8% range during 2014 and, not surprisingly, parcel providers reported 3% or great total growth for 2014. For shippers, continued financial and operating improvement across LTL and Parcel service providers will likely bring more stability but higher rates from carriers.
Read on for more information on Parcel and LTL performance in 2014 ...
LTL Carriers Grow and the Big Get Bigger
Carriers in the LTL/Freight sector generally experienced strong and growing demand in 2014. Total revenue growth was reported in the 4% to 10% range for larger carriers like Con-way (6.1%), YRC (4.2%), Old Dominion (19.2%). The Journal of Commerce reported an overall 9.1% freight revenue increase for the top 25 LTL carriers, based on reports from SJC Consulting. Overall, LTL revenue in 2015 is expected to continue growth trends with larger carriers growing more quickly than smaller, regional providers.
Parcel Carriers Continue Steady Expansion
Carriers in the Parcel business continued to show strong gains in 2014 while doing a better job managing the complexity of large year-end holiday volume spikes. Reported UPS 2014 revenues were up 4.98% to $58.2B compared to $55.5B in 2013 (see press release here for more) with 4th quarter shipments up 8% and Cyber Monday deliveries up 12%. Reported FedEx 2014 revenues were up 2.89% to $45.57 compared to $44.29B in 2013 with their 3rd quarter showing average daily volume up 7% (see press release here). For the USPS, interesting results included a $1.4B controllable operating income for the USPS fiscal year to date through February 2015 (see postal regulatory commission website here) with shipping and packages volume up 11.9% year over year.
Interested in learning more about features of Pacejet cloud shipping software or the Pacejet Carrier Network? Contact us today at 877-722-3538 or via pacejet.com.