Annual Ground Parcel Revenue to Reach $25 Billion

According to Colography, gains in revenues for the past two years have been driven in part by fuel surcharges. A look at domestic ground parcel average yield per pound was 60 cents in the first quarter of 2004 and only grew to 63 cents per pound in the third quarter of 2005.

Continuing a trend, regional LTL grew its share of shipments through September 2005 to 82% of the market as compared to 78.5% for all of 2004.

According to the research firm, domestic ground parcel revenues for through September 2005 were more than $19.2 billion, with some 2.99 billion shipments being moved during the period.

Biggest mover of domestic ground parcel for the three quarters was UPS, holding some 68.1% of the market. The carrier, along with FedEx Ground and DHL Express all showed year-over-year gains. Looking at the figures, Colography says that most of the overall gain came at the expense of the U.S. Postal Services, whose market share tumbled from 11.4% at the end of the fourth quarter of 2004 to 8.5% at the end of 2005’s third quarter.

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