Almost all the carriers surveyed in the 2004 Triangle UK Domestic Parcels Distribution Survey saw a continuation of increased carrier awareness coupled with a high level of sales activity, as measured by telephone calls and sales visits.

The Internet has become more of a routine vehicle for performing parcel-related tasks such as obtaining general information, obtaining quotes, booking collections and checking the delivery status. Some aspects of customer service still need attention however according to the survey, with many carriers recording lower ratings from customers in, for example, 'knowledgeable personnel' and 'cares about me'.

This year's annual survey of 312 customers, each sending out a minimum of 100 parcels a month, also noted some evidence of price softening in the parcels market, both over the last 12 months and in what customers are expecting over the coming year. The precise reasons for this can only be conjecture, however Triangle's Head of Research and Consultancy, Robin Parr-Davies, suggests that: “despite the window of opportunity, which had opened up with the Parcelforce restructuring during 2003 and the withdrawal of Geodis United Distribution (United Carriers) the year before, there now appears to be a return to capacity building programmes, the immediate consequence of which is a climate of excessive price competition to fill the capacity being created. Many carriers seem therefore to have reverted to type by chasing market share and volume at the expense of price!”

“Despite this year's merger between Securicor Omega Express and DHL, the full effects of which are yet to be realised, there have been no notable consolidations within the industry in the last year, and only one exit, that of Hellman. With sixteen express brands in the UK, not including the nine express (overnight) pallet network brands which adds to the complexity of the market, it can be argued that, compared to France with nine and Germany with eight, there still remain too many express parcel brands in the UK express market”, adds Mr Parr-Davies.

However, if there is a lack of consolidation in the UK express parcels industry, the post offices continue to tighten their grip with about half of the carriers featured in the survey having established some form of partnership with a (mostly European) postal administration. UK express carriers have also registered their interest in the domestic mail market with Business Post's subsidiary, UK Mail, leading the way with a ground breaking deal with Royal Mail on access pricing, shortly no doubt to be followed by others.

The impact of these and other developments, which have taken place in the last year, are all commented on in this report.

Notes to Editor:

The Triangle report (The UK Domestic Parcels Distribution Survey) has been established for 18 years. It is a major industry customer satisfaction survey of 300 + users of parcels carriers that allows carriers to benchmark their performance against that of their direct competitors and enables carriers to ( for example) measure the effectiveness of their marketing and customer service strategies. This 170 page report has become required reading for the industry and is being replicated again this year in the UK express pallet distribution sector after its successful introduction last year. The report is available for purchase at a cost of £11,000 + VAT each.

Triangle is also extending these surveys across Europe with a second edition of the French Express Survey as well as a German Express Distribution Survey taking place this summer.

Triangle Management Services Ltd., founded in 1984, is today the pre-eminent independent specialist management services company within the global mail, express, and logistics sectors. As well as market research surveys, Triangle also offers the following services to clients: Recruitment, Consultancy, Mergers & Acquisitions and Conferences - all focussed on the mail and express industry sectors.