1、Navigating Todays Top Shipping ChallengesParcel Solutions Guide 2Challenging Parcel EnvironmentThe bulk of the growth in parcel volume has been spurred by ecommerce,and online retail sales are projected to continue at an aggressive rate.According to eMarketer projections,by 2026,U.S.retail ecommerce

2、 sales will surpass$1.6 trillion and comprise over 20%of total retail sales.Most of those online orders will be individual shipments of small packages weighing less than 50 pounds.Shippers should anticipate a number of challenges in delivering those shipments,including increased costs,consumer expec

3、tations and complexity.Parcel shipments continue to increase at a record pace.In the United States,annual parcel volume could nearly double by 2027,potentially reaching as high as 40 billion parcels.3Rising costsParcel costs continue to rise exponentially.This year,the General Rate Increase(GRI)for

4、UPS and FedEx averaged a record 6.9%.However,this excludes surcharges for fuel,residential,delivery area,etc.,which are also escalating exponentially.When these factors are taken into account,most parcel shippers can expect a net impact of 12 14%on their total parcel spend.For those shipping large a

5、nd/or lightweight packages,increases in dimensional(DIM)weight rates are an important consideration because they are based on package density.Increasing complexityAs their parcel volume increases,so does the complexity of operations.Companies must routinely evaluate numerous variables,including carr

6、ier rates,transportation options,packaging efficiency,time in transit,shipment accuracy and more.Challenging Parcel EnvironmentDIM weight is calculated by multiplying the length,width and height of a package and then dividing by a carriers DIM divisor.4Delivery expectationsWhile costs are rising,shi