Package delivery
Encyclopedia
Package delivery or parcel delivery is the shipping of packages (parcels) or 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.
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 compromise 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 traveled 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).
On January 1, 1913, 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 (now known as FedEx
) 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.
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 only available for Express Mail
service and some international services.
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 Streamlite, Argix Direct and Newgistics
--provide full tracking and tracing for their customers' parcels.
in the Western United States, Eastern Connection on the Eastern Seaboard, Lone Star Overnight in Texas and Spee Dee Delivery Service in the Mid West. They combine the track and trace capability of the national carriers with the ability to guarantee next day delivery at ground rates over a larger delivery footprint. Because they are regionally based, they are able to improve shipment time in transit and increase shippers productivity with later pick up times. The regional parcel carriers can be a cost effective enhancement to UPS and FedEx because they do not charge the full array of accessorial charges mentioned in the section above.
The individual sorting and handling systems 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 package testing
services.
Mail
Mail, or post, is a system for transporting letters and other tangible objects: written documents, typically enclosed in envelopes, and also small packages are delivered to destinations around the world. Anything sent through the postal system is called mail or post.In principle, a postal service...
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.
Package delivery in the United States
Private parcel services arose in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
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
Wells Fargo
Wells Fargo & Company is an American multinational diversified financial services company with operations around the world. Wells Fargo is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home...
, 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
Stagecoach
A stagecoach is a type of covered wagon for passengers and goods, strongly sprung and drawn by four horses, usually four-in-hand. Widely used before the introduction of railway transport, it made regular trips between stages or stations, which were places of rest provided for stagecoach travelers...
business and prompted them to participate in the Pony Express
Pony Express
The Pony Express was a fast mail service crossing the Great Plains, the Rocky Mountains, and the High Sierra from St. Joseph, Missouri, to Sacramento, California, from April 3, 1860 to October 1861...
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 compromise 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 traveled as "head end" traffic in passenger trains. In 1918 the formation of the United States Railroad Administration
United States Railroad Administration
The United States Railroad Administration was the name of the nationalized railroad system of the United States between 1917 and 1920. It was possibly the largest American experiment with nationalization, and was undertaken against a background of war emergency.- Background :On April 6, 1917, the...
resulted in a consolidation of all such services into a single agency, which after the war continued as the Railway Express Agency
Railway Express Agency
The Railway Express Agency was a the national monopoly set up by the Untied States federal government in 1917. Rail express services provided small package and parcel transportation using the extant railroad infrastructure much as UPS functions today using the road system...
(REA).
On January 1, 1913, parcel post
Parcel post
Parcel post is a service of a postal administration for sending parcels through the post. It is generally one of the less expensive ways to ship packages that are too heavy to be sent by regular letter post and is usually a slower method of transportation....
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
United Parcel Service
United Parcel Service, Inc. , typically referred to by the acronym UPS, is a package delivery company. Headquartered in Sandy Springs, Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the...
had its origins in this era, initially as a private courier service. The general improvement of the highway system following World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
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 (now known as FedEx
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...
) 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
Express mail
In most postal systems express mail refers to an accelerated delivery service for which the customer pays a surcharge and receives faster delivery. Express mail is a service for domestic mail and is governed by a country's own postal administration...
service. Ironically, in the same period they also began contracting with Amtrak
Amtrak
The National Railroad Passenger Corporation, doing business as Amtrak , is a government-owned corporation that was organized on May 1, 1971, to provide intercity passenger train service in the United States. "Amtrak" is a portmanteau of the words "America" and "track". It is headquartered at Union...
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.
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
United Parcel Service
United Parcel Service, Inc. , typically referred to by the acronym UPS, is a package delivery company. Headquartered in Sandy Springs, Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the...
(UPS) and FedEx
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...
, 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 only available for Express Mail
Express mail
In most postal systems express mail refers to an accelerated delivery service for which the customer pays a surcharge and receives faster delivery. Express mail is a service for domestic mail and is governed by a country's own postal administration...
service and some international services.
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
Electronic Data Interchange
Electronic data interchange is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e...
(EDI), and pickup service." Indeed, most USPS "workshare partners"--from major carriers like FedEx SmartPost and DHL Global Mail to specialty carriers like Streamlite, Argix Direct and Newgistics
Newgistics
Newgistics is a shipping company dealing in the management of small parcel delivery and returns services. The company partners with the United States Postal Service to handle last-mile delivery and first-mile pickup of packages while allowing package tracking along the way...
--provide full tracking and tracing for their customers' parcels.
Regional Parcel Carriers
In addition, a number of regional parcel delivery companies have sprung up over the last twenty years including OnTracOnTrac
OnTrac is a regional parcel carrier that serves the seven largest states in the Western U.S. OnTrac started as a small package delivery company in California in 1991, and has expanded to serve six additional states: Arizona, Nevada, Oregon, Washington, Utah and Colorado...
in the Western United States, Eastern Connection on the Eastern Seaboard, Lone Star Overnight in Texas and Spee Dee Delivery Service in the Mid West. They combine the track and trace capability of the national carriers with the ability to guarantee next day delivery at ground rates over a larger delivery footprint. Because they are regionally based, they are able to improve shipment time in transit and increase shippers productivity with later pick up times. The regional parcel carriers can be a cost effective enhancement to UPS and FedEx because they do not charge the full array of accessorial charges mentioned in the section above.
Package handling
Packaging engineering
Packaging engineering, also Package engineering and Packaging Science, is a broad topic ranging from design conceptualization to product placement. All steps along the manufacturing process, and more, must be taken into account in the design of the package for any given product...
staff which provides packaging guidelines and sometimes package design and package testing
Package testing
Package testing or packaging testing involves the measurement of a characteristic or property involved with packaging. This includes packaging materials, packaging components, primary packages, shipping containers, and unit loads, as well as the associated processes.Testing measures the effects...
services.