Pitney Bowes Parcel Shipping Index: U.S. Carrier Disruption Is Increasing—And That's Good News for Shippers

Business Wire

7 hours ago

STAMFORD, Conn.--(BUSINESS WIRE)--Pitney Bowes Inc. (NYSE: PBI) ('Pitney Bowes' or the 'Company'), a technology-driven products and services company that provides SaaS shipping solutions, mailing innovation and financial services to clients around the world, today released its annual Pitney Bowes Parcel Shipping Index, which includes comprehensive data on U.S. parcel shipping for 2024. The Company also provided U.S. parcel shipping data for the first quarter of 2025.
Key takeaways from the Parcel Shipping Index, which can be viewed and downloaded here, include:
Parcel volume outpaced revenue growth. In 2024, U.S. parcel volume saw significant growth, reaching 22.4 billion shipments, a 3.4% increase over the prior year. However, revenue growth was outpaced by the rise in volume, with total revenue growing by just 2.7%.
Pricing pressure will increase disruption among carrier services, which is good news for shippers. To capture a larger market share, carriers are increasingly offering competitive pricing, leading to lower revenue per parcel. Pricing pressure is largely driven by the rapid growth of alternative carriers, as well as USPS' new low-cost shipping option, Ground Advantage.
Smaller carriers are experiencing double-digit volume growth while parcel market heavyweights FedEx, UPS and USPS lag. Amazon Logistics handled 6.3B parcels in 2024, claiming the number two spot for market share by volume, just behind USPS' 6.9B parcels. Amazon is projected to overtake USPS by 2028. The 'Others' (carriers excluding FedEx, UPS, and USPS) also experienced significant year-over-year growth of 23%, going from 0.6B in 2023 to 0.8B in 2024.
Tariffs could cause further disruption, producing new opportunities for smaller carriers. The newly imposed tariffs are expected to affect carriers' cross-border shipping costs and disrupt supply chains with longer delivery times for international shipments. New, final-mile and regionally specialized carriers could capitalize on the growing demand for localized, cost-effective shipping solutions in markets where the larger international carriers may struggle to offer affordable services.
Key parcel shipping data for the first quarter of 2025 include:
In Q1 2025, U.S. parcel volume remained relatively flat, increasing by 0.4% year-over-year, underscoring the slowdown in volume growth.
FedEx had a positive trend in volume for the first time since 2021, with volume increasing 5.8% year-over-year. Key drivers of this increase include:
Integration of FedEx Ground and FedEx Services into a unified network under Federal Express, which helped streamline operations.
Targeted growth strategy for FedEx Ground Economy services aimed at boosting volumes by focusing on specific market segments and optimizing delivery routes.
USPS volume declined by 6.2% year-over-year despite advancement of Ground Advantage; ongoing concerns about tariffs uncertainty and weather disruptions are impacting volumes.
UPS volume dropped by 5.4% year-over-year with Amazon volume to UPS reduction affecting the decline.
The carrier volume of 'Others' has not yet been negatively affected by reduction in small packages from China.
Average RPP was up only 0.07%, continuing to reflect excess capacity and competitive pricing.
Shemin Nurmohamed, EVP & President of Sending Technology Solutions at Pitney Bowes, commented:
'Since Pitney Bowes began tracking shipments a decade ago, the parcel market has been dominated by FedEx, UPS and USPS. We are witnessing a turning of the tide, evidenced by the nearly 40% volume growth in the five-year CAGR of 'Other' carriers. This disruption presents a unique opportunity for businesses to take advantage of competitive pricing.
With carriers facing increased competition, evolving service offerings and potential tariff impacts, it's essential for businesses to have flexibility in shipping providers. Leveraging shipping technology that grants access to multiple carriers – and comes with pre-negotiated discounted rates – provides the flexibility to adapt to shifting dynamics in the market.'
Appendix: Summary of Key Data
Carrier Volume
Parcel volume reached 22.37B in 2024, a 3.4% increase from 2023's 21.65B
By volume, USPS shipped 6.9B parcels, up 3.2% from 2023, Amazon Logistics shipped 6.3B parcels, up 7.3% from 2023, and UPS shipped 4.7B parcels in 2024, up 1.7% from 2023
FedEx was the only carrier whose volume declined year-over-year from 3.9B parcels in 2023 to 3.7B parcels in 2024
Market Share by Volume
USPS continues to hold the largest market share at 31%
Amazon Logistics is the second largest provider, increasing its share from 27% to 28%
UPS ranks third with a 21% market share
FedEx saw its share of volume decline from 18% to 17%
The 'Others' category increased its market share from 3% to 3.5% of the market
Carrier Revenue
Total U.S. parcel revenue increased 2.7% to $203.2B in 2024, up from $197.9B in 2023
However, carrier revenue per parcel saw a slight decline of 0.6% dropping to $9.09 down from $9.10 in 2023
UPS led the carriers with the highest revenue with $69.8B in 2024, marking a 1.3% increase from 2023. FedEx followed with $63.2B, USPS and Amazon Logistics parcel revenues were $32.3B and $31.1B respectively
Market Share by Revenue
UPS held the largest parcel revenue market share at 34% though this was a slight decrease from 35% in 2023. FedEx followed with a 31% share, reflecting a 0.8 percentage point decline
USPS maintained its revenue market share of 16%, experiencing a minor decrease of 0.2 percentage points
Amazon Logistics saw an increase of 0.9 percentage points, reaching 15.3%
The 'Others' category also grew, rising from 2.8% to 3.4%
Forecast
Pitney Bowes forecasts that U.S. parcel volume will reach between 23B and 35B by 2029
The most likely scenario predicts a volume of 30.5B with a 5% CAGR between 2025 and 2030
About the Pitney Bowes Parcel Shipping Index
The Pitney Bowes Parcel Shipping Index measures parcel volume and spend for business-to-business, business-to-consumer, consumer-to-business and consumer consigned shipments with weight up to 31.5kg (70 pounds) across the United States. Population data points were sourced from Macrotrends.net.
About Pitney Bowes
Pitney Bowes (NYSE: PBI) is a technology-driven products and services company that provides SaaS shipping solutions, mailing innovation, and financial services to clients around the world—including more than 90 percent of the Fortune 500. Small businesses to large enterprises, and government entities rely on Pitney Bowes to reduce the complexity of sending mail and parcels. For the latest news, corporate announcements, and financial results, visit www.pitneybowes.com/us/newsroom. For additional information, visit Pitney Bowes at www.pitneybowes.com.