Data analyzed by the Trackr app team reveals that in spite of the challenging economic environment, four leading logistics companies – UPS, DHL, USPS, and FedEx – report over $300 billion in revenue for the financial year 2020. The data was analyzed from official press releases from 4 selected companies to find out what impact the coronavirus outbreak and e-commerce boom have made on the logistics sector, and provide an outlook for 2021 and beyond.
From the data, UPS reports the highest revenue increase of 14.20%, resulting in $84.60% billion. DHL’s revenue reaches a staggering $80.41 billion, followed by USPS that has also experienced a boost of nearly $2 billion (from $71.15B in 2019 to $73.10B in revenue), leaving FedEx with $69.20 billion behind.
As the companies’ leaders admit themselves, 2020 has exceeded their expectations, bringing significant changes to the stock market as well. FedEx managed to improve its stock price to all-time highs of $254.36 for the period of February 10, 2020, to February 10, 2021, increasing its ROI by 60.35%. UPS grew by 53.25% during the same period and its stock price is now $162.37 while DHL experienced 36.04% growth, resulting in a stock price of $45.25.
However, the companies had to also overcome the challenges brought by the pandemic and the surge in e-commerce. The most common issues highlighted by industry leaders were disruptions in the workforce, fast changes in the marketplace, the urgent need for supplements for safety precautions.
Even so, USPS states that the package volume has increased by almost 1.2 billion pieces, or 18.8% compared to 2019, which reflects a clear shift in consumer behavior. Although the future is still unclear, companies project a positive outlook for 2021 and beyond. DHL and UPS, in particular, have been actively participating in the distribution of COVID-19 vaccines worldwide, aside from their daily activities.
The Trackr’s app Co-Founder commented on the future of logistics: “As more and more logistics-related tasks are shifting online, one of the biggest challenges in the next 10 years will be the expansion of logistic centers and their ability to adapt,” said Ernestas Petkevicius, Co-Founder of the Trackr app. “We have already witnessed leading carriers reporting record-breaking numbers, and this is likely the direction that e-commerce-related sectors will continue to follow while having to deal with constantly arising new challenges.”