Express cargo's big shift... to lower revenue

© Khunaspix Dreamstime.

The profile of the express air cargo market is fundamentally changing, according to this report from ATW. Whereas the original remit for the likes of UPS and FedEx was focused on the business to business (B2B) market, UPS chief financial officer Richard Peretz said business to consumer (B2C) made up 63% of the volume of its deliveries in December. However, the report warns that while new markets may be popping up, the promise they offer is significantly less valuable than the old ones. As a case in point, UPS’s average revenue per piece was down year-over-year, or flat in every category of its package shipping business, in the 2016 fourth quarter.