Parcels fight for space
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by Derren Hayes • Parcels companies are predicting continued growth in the UK carrier market in 1996, but insiders warn that there are so many operators cashing in that some may go bust in a crowded marketplace.
Following an uplift in the economy most parcels operators reported an improvement in the volumes carried in 1995 and say this trend is set to continue in 1996 despite increasing competition.
ANC says its parcels volumes have risen by 2030% over the past few years and is predicting record trade for 1996.
Financial director Chris Pywell says: "We have invested £10m on expanding our central sorting office and will continue investing to increase growth potential?'
Lynx Express Delivery Network has also enjoyed a successful 12 months and operations director David Burtenshaw predicts an expansion of franchising and shared-user networks.
But Burtenshaw says there are too many operators chasing the same business. "The word on the grapevine is that at least one carrier is likely to go out of business in the first six months this year," he says.
Parceline also enjoyed a 20% rise in volumes carried and built a new hub in Manchester this year.
While confident of the future Parceline also says there are too many operators looking for a slice of the cake—it is looking towards Continental markets for further expansion.