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Growth forecast for Express carriers

14th July 1984, Page 14
14th July 1984
Page 14
Page 14, 14th July 1984 — Growth forecast for Express carriers
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Freight movements in the UK rose by an estimated 5.5 percent in volume terms, in 1983, according to a report published this month, and road transport is poised for further recovery over the next three years.

The report, issued by Euromonitor, says that the 1983 increase lends weight to the opinion that the UK economy is showing some recovery.

Freight movements were measured in tonne/km Freight ments. In 1983, total movements were estimated at 179 billion tonne-kilometres, of which 132 billion tonne-kilometres were accounted for by inland surface transport. Overall, 59 per cent was accounted for by road trans port, 26 per cent by water, 19 per cent by rail and 5 per cent by pipeline. Most growth in 1983 was estimated to have come in rail traffic, with an 11 percent rise. Excluding petroleum and coal, some 108.5 billion tonne-kilometres were transported in 1983, overwhelmingly dominated by road traffic with a 90 percent share of the national load.

Eurornonitor estimates that 40 per cent of the freight market is accounted for by manufacturers, 25 percent by specialist distribution services, 20 percent by retailers and 10 percent by wholesalers. The remaining 5 percent is accounted for by foreign transit operations. The report says the UK freight mar ket was worth an estimated £21.2 billion in 1983 in terms of user's expenditure on inland surface transport, with road transport worth £20.5 billion. This showed an 11 per cent growth over 1982, similar to that of passenger transport operations, worth E29.5 billion in 1983.

In terms of road freight transport by commodity, the largest sector of the market is food, drink and tobacco, accounting for 27 per cent of freight moved in 1983. Over recent years, most growth has been in this category, together with "agricultural requisites and transport equip ment". The main decreases has been in iron and steel, other metal goods, and petroleum products. "The increased emphasis on consumer goods undoubtedly helped to fuel the real growth in freight movements in 1983," says the report.

The report also looks at the expanding fast freight market. The express "next day") parcels market was estimated to be worth £190 million in 1983, and is thought to be growing rapidly with Securicor, Courier Express and TNT Overnite in particular competing with the Post Office. The fast freight market is expected to expand rapidly over the next five years as the numbers of service companies grow. Express parcels and air courier services could generate a turnover of over £500 million by 1987.

Transport costs account for about 50 per cent of total UK expenditure on physical distribution, which amounted to an estimated £42 billion in 1983. About 25 per cent goes on warehousing, and the rest on inventory financing and order processing.

The full report is available from Euromonitor Publications 87/88 Turnmill Street, London BC1M 5QU. Price £96.

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