PACKAGE DELIVERY

'Package delivery' is the ''shipping'' of packages and parcels (and in some instances high value mail) as single shipments. While the service is provided by most postal systems, private package delivery services have also existed in competition with and in place of public postal services.

Contents
Package delivery in the United States
List of Package & Small Parcel Delivery Service Providers
Major Carriers
Regional & Specialty Carriers
Country-Specific Carriers
The Role of Parcel Shipping Consolidators
Package Handling
References

Package delivery in the United States


Private parcel services arose in the United States in part over discontent with the United States Post Office, whose rates were seriously inflated due to the monopoly it held over regular mail and the appointment of postmasters as political patronage jobs. In 1852 Wells Fargo, then just one of many such services, was formed to provide both banking and express services. These went hand-in-hand, as the handling of California gold and other financial matters required a secure method for transporting them across the country. This put Wells Fargo securely in the stagecoach business and prompted them to participate in the pony express venture. They were preceded, among others, by the Butterfield Overland Stage, but the failure of the latter put the business in Wells Fargo's hands and led to a monopoly on overland traffic that lasted until 1869, when the transcontinental rail line was completed. During this period they carried regular mail in addition to the package business, defying the post office monopoly; eventually a compormise was worked out wherein Wells Fargo charged its own fee on top of federal postage, in recognition of the limitations of the post office reaching all areas easily.
From 1869 on package services rapidly moved to rail, which was faster and cheaper. The express office was a universal feature of the staffed railroad station. Packages travelled as "head end" traffic in passenger trains. In 1918 the formation of the United States Railroad Administration resulted in a consolidation of all such services into a single agency, which after the war continued as the Railway Express Agency (REA).
In 1912 parcel post service began, providing rural postal customers with package service along with their regular mail and obviating a trip to a town substantial enough to support an express office. This, along with Rural Free Delivery, fueled a huge rise in catalog sales. By this time the post office monopoly on mail was effectively enforced, and Wells Fargo had exited the business in favor of its banking enterprises.
Motor freight services arose quickly with the advent of gasoline and diesel powered trucks. United Parcel Service had its origins in this era, initially as a private courier service. The general improvement of the highway system following World War II prompted its expansion into a nationwide service, and other similar services arose. At the same time the contraction of rail passenger service hurt rail-based package shipping; these contractions led to the cancellation of the mail contracts with the railroads, which in turn caused further passenger cuts. Eventually REA was dissolved in bankruptcy in 1975.
Air mail was conceived of early, and scheduled service began in 1918. Scheduled airlines carried high valued and perishable goods from early on. The most important advance, however, came with the "hub and spoke" system pioneered by Federal Express in 1973. With deregulation in 1977, they were able to establish an air-based system capable of delivering small packages-- including mail-- overnight throughout most of the country. In response the postal service initiated a comparable Express Mail service. Ironically, in the same period they also began contracting with Amtrak to carry mail by rail. Thus at the beginning of the 21st century, the US consumer can choose from a variety of public and private services offering deliveries at various combinations of speed and cost.

List of Package & Small Parcel Delivery Service Providers


'Express Same Day, Next Day, Two Day & Three Day, and Ground Delivery Services.'
According to Competition Within The United States Parcel Delivery Market, a report published by Postcom.org, American consumers will spend more than $50 billion to ship parcels, packages, and overnight letters.
Major Carriers


DHL Acquired Airborne Express in August 2003.

FedEx (Formerly Federal Express Corporation.)

TNT N.V. (Includes TNT Express Worldwide Network and TNT Air Cargo.)

UPS (United Parcel Service). Also called UPS, Brown.

USPS (US Postal Service.) Also known as the Post Office, Postal Service.
Regional & Specialty Carriers

There are many local, regional and specialty package delivery companies operating in the United States. Services range to same-day delivery within specific geographic locations.

AirNet Systems, Inc. Specializes in international financial documents, organs for transplant, blood products, media and tapes for distribution, aircraft parts, security sensitive material.

Associated Global Systems

Astar Air Cargo Formerly DHL Airways. Air charter and freight services, freight forwarding and cargo carrier shipments for government, military and large corporations worldwide.

Cavalier Logistics Specializes in global delivery of pharmaceutical, vaccine and health care products.

CEVA Logistics Formerly TNT Logistics.

CorTrans Logistics, LLC Also known as CTL. Specializes in expedited logistics services.

easyQube.com Specializes in residential last mile deliveries through the use of an automated kiosk.

Gardella Courier Services Same day package delivery service to the US northeast corridor.

ParcelPool.com Specializes in home delivery of packages and small parcels to APO-FPO addresses, Hawaii, Alaska, Puerto Rico, US Territories (Guam, U.S. Virgin Islands, American Samoa, Northern Mariana Islands, Midway Islands, etc.) Japan and Europe.

qube2you.com Specializes in late night and weekend deliveries with a one-hour window. Limited to select neighborhoods in Boston and Cambridge.
Country-Specific Carriers

NOTE: For a list of National Postal Services, please see Mail |List of national postal services.

AGL Group Ltd. (Cambodia)

AMPM (Mexico)

Aramex (Jordan)

TransEstrie Transport (Quebec, Canada)

Courrier S.L.R. (Canada)

DTDC (India)

Estafeta Carga Aerea (Mexico) A cargo airline based in Mexico City, also known as Estafeta Cargo.

Jetpak (Scandinavia) Jetpak Group is a Scandinavian express logistics company specializing in same day and overnight distribution to Denmark, Finland, Norway and Sweden.

Overseas Courier Service (Japan) Also called OCS Ltd.

Purolator Courier (Canada)
The Role of Parcel Shipping Consolidators

Continued growth of business to consumer (b2c) e-commerce has increased demand for low-cost package shipping services. Demand for inexpensive parcel shipping is especially intense for online and catalog retailers. These merchants, many of whom primarily ship low-cost goods, face consumers resistant to paying exorbitant shipping costs (often driven up by fuel surcharges, residential delivery fees, etc.) for package delivery to their homes. As a result, package shipping consolidators step in to combine low-cost "last-mile delivery" strengths of the US Postal Service with the technological and operational capabilities generally associated with private carriers.
Large parcel carriers, such as United Parcel Service (UPS) and FedEX, often include an array of accessorial charges (like fuel and residential delivery surcharges) in addition to their standard fees. The US Postal Service (USPS) offers low-cost options for small package delivery to the home, such as Parcel Select and Parcel Post. However, many merchants prefer low-cost shipping options without sacrificing visibility of their parcels while in transit ("track and trace"). The US Postal Service does offer a limited "Delivery Confirmation" for even their lowest-cost package delivery services, but more robust tracking is currently not available through the federal agency.
Instead, the USPS has established "worksharing agreements" with parcel consolidators, who pick up a shipper's parcels, sort and route them, then enter them into the Postal system for final delivery. The Postal Services claims parcel shipping consolidators provide "up-front estimates on expected delivery time" and can offer "value-added services," like "customized rates, manifesting, delivery confirmation, billing, insurance, electronic data interchange (EDI), and pickup service." Indeed, most USPS "workshare partners"--from major carriers like FedEx SmartPost and DHL Global Mail to specialty carriers like ParcelPool.com and Puerto Rico DDU Plus--provide full tracking and tracing for their customers' parcels.

Package Handling


Transport packaging needs to be matched to its logistics system. Packages designed for controlled shipments of uniform pallet loads may not be suited to mixed shipments with express carriers.

The individual sorting and handling systens of small parcel carriers can put severe stress on the packages and contents. Packaging needs to be designed for the potential hazards which may be encountered in parcel delivery systems. The major carriers have a packaging engineering staff which provides packaging guidelines and sometimes package design and testing services.

References



A Brief History of the Package Delivery Industry from the United States Treasury website

FedEx Corporate History

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