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Overnight shipping distances getting shorter

Staff -- Logistics Management, 7/1/2003

The world is getting smaller—the business world, that is. Findings in the 2002 National Survey of Expedited Cargo conducted by Atlanta-based research firm The Colography Group indicate that nearly half of all domestic overnight air shipments last year moved fewer than 350 miles. Nearly one-third—31 percent—moved within a 150-mile radius. Less than 20 percent of overnight traffic, meanwhile, traveled further than 1,200 miles.

The survey, now in its 11th year, takes its data from interviews with more than 30,000 transportation and logistics decision-makers representing 75 percent of all U.S. domestic shipping activity. It covers 144 industry groups and five employment categories, ranging from small businesses to multinational corporations.

The short-haul trend, which Colography Group President Ted Scherck said has been on the move for the past decade, is also visible in second-day air statistics. Nearly 45 percent of that traffic moves fewer than 350 miles. By contrast, only 20 percent of second-day air shipments these days travels more than 1,200 miles.

Scherck noted that the survey data show there is continued demand for overnight air services despite competitive pressure from ground transportation offerings that cover the same distances. More than 52 percent of all ground parcel deliveries were made within 350 miles of a shipment's origin, and 32 percent of deliveries were made within 150 miles.

The increasing demand for expedited delivery was clearly indicated in the survey results, with 65 percent of overnight deliveries slated for arrival before noon. "Buyers of overnight service find compelling value in having their goods in hand as quickly as possible," Scherck said. "The need for speed, or faster transit times, [is] more acute today than ever."

The survey results can be purchased in their entirety or by module from The Colography Group. Customized reports also are available. Call (678) 385-2500 or visit www.colography.com.

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