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Report Shows Growth Of 20% In US Delivery Work

A recent report by specialist portal ForexTV has shown that delivery work revenue in the United States of America grew by a margin of as much as 20% in the past year, with most providers reporting a revenue increase of at least 10%. 

According to the piece in question, the heightened demand is mostly related to the rise of online shopping, and its accompanying call for same-day delivery. Popular online retailers such as eBay or Amazon account for the majority of the delivery work undertaken in the United States at this point, and their ‘express delivery’ services play a large part in keeping delivery companies not only in business, but thriving. 

In fact, as a result of this increase in both demand and revenue, the vast majority of delivery work providers in the country are planning to raise the prices of their services by as much as 10% in 2014. Part of the reason for these higher prices stems from the need to cover the higher wages being demanded by drivers working these last-minute and express deliveries. 

Despite this almost global increase in revenue and demand across the United States, traditional transport companies still face the problem of new, low-cost, technology-based competitors. These new entrants’ small overheads, resulting partially from their low investment in manpower, allows them to practise somewhat lower rates than their more classically-run counterparts, which could represent a problem for the latter in the long run. In addition, home delivery work – in particular for same-day express deliveries – can be somewhat time-consuming, forcing companies to assess the cost-benefit ratio of this type of work on a regular basis. 

As a result of this tendency for growth in online shopping and home delivery, most companies are looking to expand their fleet, either by purchasing more vehicles or hiring more drivers. While justified by the increase in demand, this could also prove to be a risky move should the sector begin to ebb again. 

About Haulage Exchange: 

Haulage Exchange is an online trading platform which aims to connect haulers with empty vehicles (often on return journeys) to contractors with loads that need to be delivered. Learn more about them at www.haulageexchange.co.uk/ 

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