Express and parcel prices and revenues are declining more rapidly than shipment volumes in Francebecause of strong price competition, according to a study by the statistics department of the
French Transport Ministry covering the first quarter of 2009.During the first three months of this year, commercial competition resulted in a strong dropin market prices which eliminated price increases from last year, the recently-published reportshowed.
Market revenues in the standard parcels segment slumped 8.3% in the January-March 2009 periodcompared to the previous quarter while shipment volumes dropped 7.7%, the study revealed. The slumpwas more dramatic than during the previous quarter. The average price per kg slightly dropped to€0.37, in net terms, while the average shipment weight decreased to 95 kg. The standard parcelsegment has seen revenues fall by 11.7% and tonnage by 14.3% on an annual basis.
In the overall domestic express business, the drop was even more dramatic with revenuesfalling 10.2% and volumes dropping by 5.9%, according to the survey. The average express shipmentprice dropped back to €32.50 after a considerable increase in the previous quarter while theaverage weight also fell to 29.2 kg after an increase during the previous three quarters. On ayear-on-year basis, express market revenues were down by 14.2% and shipments declined 15.7%.
In the domestic small parcels express segment, covering light parcels weighing less than 30kg, the decline was more moderate with a revenue drop of 2.7% and a volume drop of 1.6% on ayear-on-year basis.
In terms of intra-EU standard parcels, the revenues and volumes are rapidly declining. Exportrevenues dropped by 14.9% closely followed by a tonnage decline of 14.8% in the first quarter of2009. On an annual basis, revenues dropped 13.3% and tonnage was 17.9% lower.
Express revenues of exported shipments to EU destinations dropped more dramatically by 17.3%while the number of shipments only slightly decreased by 1.4% on an annual basis, the surveyshowed. The average price of export express items dropped dramatically by 16.1% to €31.58, and theaverage weight declined 10.1% to 10.7 kg.
The ministry’s quarterly report surveys 18 operators covering 75% of the French parcels andexpress market. The survey covers domestic and intra-EU business, and presents neutralised figuresin terms of market tonnage, shipment numbers and revenues, average weights and average prices bymarket segment. The study excludes freight transportation.
