Parcel - April 2008 - (Page 38)

SEVEN SHIPPING TRENDS FOR 2010 AND BEYOND Plan now and you won’t miss the ship! By Doug Caldwell 1. Green shipping is already here You don’t need to wait for this mega-trend — it’s already happening. By 2010, there will be three main components to shipping decisions: cost (obviously), service (it’s got to be good, or else the others don’t matter) and the environment. And it’s not just the management at savvy companies that are demanding to know your “shipping carbon footprint,” it’s your customers as well. A recent Nike sustainability report indicates that “shipping and logistics” ranks second only to manufacturing in having the greatest environmental impact and the greatest opportunity for improvements in this key area, while a recent Morgan Stanley report cites that the amount of fuel to deliver the average UPS ground package has actually gone up in four of the last ﬁve years! 2. Even bigger changes at the Postal Service: “Thinking outside the PO Box” The Morgan Stanley report also asserts that shipping is a real “bright spot” in USPS’s future. Big changes are already afoot at the Postal Service, and those changes will continue over the next several years. One step has already taken place: the promotion of package gurus Jim Cochrane and Gary Reblin, who now report directly to Postmaster General Jack Potter. By the time you read this, some of the new volume-based shipping discount programs will already be in place. And many of you may have already noticed the increases in package tracking information that you are getting from the Postal Service. The new “intelligent mail devices” have already been deployed to all 303,000 postal carriers. And enhancements and improvements will be made to service offerings across the board, to Priority Mail, Express Mail, return services, Parcel Select, international and more. The two new and larger “ﬂat rate” Priority Boxes have already hit the market, bringing the total to four. In short, when it comes to shipping, it’s not your “father’s Post Ofﬁce” anymore. 3. Size matters! The cube of a package is rapidly becoming as important as the weight. Remember the good old days when all you needed to know was the weight? Well, the cube of the package will become at least as important as the weight in the next few years, so you might as well start preparing right now. Why the emphasis on cube? Because regardless of the carrier, planes and trucks tend to “cube out” long before they hit their maximum operating weight. If at all possible, try to keep your average package under 10 lbs. per cubic foot. 4. B to C shipments will continue to outpace B to B. The Atlanta Journal Constitution recently reported that Business to Consumer shipments for parcel giant UPS are now 30% of the total — and growing rapidly. That’s more than a 50% increase since 1999, and that trend will continue and even accelerate for years to come. The down38 Spring 2008 www.PARCELindustry.com http://www.PARCELindustry.com

Table of Contents Feed for the Digital Edition of Parcel - April 2008

PARCEL - April 2008 Contents Editor's Note Moving Forward Recycling for Safety’s Sake Want Some Good News? Negotiations Have No Finish Line... Lowering your Parcel Shipping Costs Meeting Industry Challenges New Pricing, New Opportunities Time to Track It’s Scan-tastic! 10 Recycling Facts The New USPS Law Changes New Law, New Opportunities for Package Shippers A Diamond in the Rough Seven Shipping Trends for 2010 ...and Beyond The Move Update Changes A Simple Shipping Solution A Case Study in Efficiency New Products and Services Industry News Advertiser Index

Parcel - April 2008

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