Holiday Season Sets Record Increase for Australian Parcel Deliveries

Delivery being made

Australia Post tallied its busiest month in its 209 years of existence, after delivering more than 37 million parcels nationwide in December 2017, up nearly 20 percent compared to last year. This is promising for companies in the poly-woven strapping and lashing supplies business.

Bob Black, Australia Post COO, said that the company had to hire over 2,000 additional workers to handle the higher demand, primarily because of the holiday season. The average volume of deliveries to each household reached more than five parcels, Black said.

Delivery Options

The week before Christmas accounted for a significant portion of Australia Post’s deliveries with more than 11 million packages and over 100 million holiday cards and letters. Weekend deliveries, extended business hours, and parcel redirections comprised some of the delivery to options that Australians chose from the company.

E-commerce transactions also contributed to parcel deliveries, as online purchases rose 15 percent in 2017, according to Australia Post. The company’s delivery volume indicated the viability of Australia’s logistics and warehousing market to reach $187 billion by 2021, according to Ken Research.

Market Value

Poly woven strapping and other cargo solutions will be more necessary in the next few years, amid an increasing demand for agriculture products from abroad and cold-chain logistics. Ken Research cited an improved integration and digitalisation of the supply chain as a major factor for the forecast growth.

The logistics and warehousing sector’s recent developments will continue with Australian investments in road, rail, air and water infrastructure. Between 2014 and 2021, the government will spend $70 billion for transport infrastructure, while $75 billion would be used for road and rail infrastructure projects between 2018 and 2027.

Conclusion

The holiday season may be over, but the strength of Australia’s logistics and warehousing industries will continue with the growth of the e-commerce sector and the promise of more infrastructure investments.