Parcel volumes to remain 20% above pre-pandemic rate this year

Shipping costs, not speed, to carry the day in 2023, DHL unit report says

U.S. lightweight parcel volumes have fallen off considerably since the pandemic drew to a close. (Photo: Jim Allen/FreightWaves)

U.S. lightweight parcel volumes have fallen off considerably since the pandemic drew to a close, yet this year they will still remain 20% above pre-pandemic levels in 2019, according to a report issued Friday by DHL eCommerce Solutions, a unit of Deutsche Post DHL Group.

The 2023 “E-Tailers Almanac” laid out four main trends, based on interviews with online merchants. Among them is that value-conscious consumers will make shipping costs, rather than speed, their top priority when choosing a provider. 

Another is the increasing importance to merchants of real-time visibility, shipment tracking and exception management. This will lead to increased spending by merchants on data analytics solutions, according to the report.

A third trend is a return to regionalization of demand. As supply chain bottlenecks ease and market conditions stabilize, businesses will return to strategies that bring them closer to their end markets, according to the report.

“For e-commerce merchants, regionalizing their distribution networks can help them get closer to their end consumers and save on transportation costs,” the report said.

“With order volumes down and less demand in capacity, our e-tailer customers’ priorities have evolved to ensure they retain customers in a tough economy,” said Lee Spratt, CEO, DHL eCommerce Solutions, Americas.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.