U.S. Has The Most Expensive Shipping Rates

Before shipping a parcel, the first things customer do is ask for the courier quote because they do not want to be surprised with a sky high rate they can’t afford. According to the parcel shipping index of Pitney Bowes, the international parcel volume continues to soar high and thereby increasing at a rate faster than the revenue growth. The volume has increased by 17 per cent for the year-on-year figure in 2017 while the revenue only increased by 11 per cent during the same period.

The United States did not bag the top spot for the highest gains in terms of volume of parcel but it sure is the winner when it comes to the revenue that proves just how much the shipping rates in the country has surpassed other nations that are handling higher volumes. According to the survey, the average cost of shipping parcel in the United States is $8.95 while in China it is $1.83 and in Japan it is only $2.64.

According to an estimate by Pitney Bowes, by 2020 the international shipping volumes will be more than 100 billion parcels. When this happens, the industry has already seen an increase of 25 per cent in global volume. These are coming from 13 major shipping countries including Japan, United Kingdom, Germany, United States, Australia, China, France, Norway, Brazil and India.

When it comes to parcels per capita, Japan is the number one while United Kingdom follows on the second place. United States is on the fourth place coming after Germany which is on the third spot. Looking at this data, it can be said that there is a boom in the international parcel volume but when you look at the impact that China is making, coming only at 6th place, one could say that the result might not be as straightforward as it seem.

According to Pitney Bowes’ president of commerce services, Lila Snyder, China remains to have the biggest impact in terms of shipping market in an international level when deciding based on growth along with absolute scale. Many are still shocked with the rate difference between China and the US. It prompted many to ask for courier quote and go with the lowest rate before shipping in order to save costs.