NEW YORK, N.Y. — According to a report in yesterday’s Wall Street Journal, cargo carriers are seeing customers switch to trucks as a result of improvements in ground-based delivery services.
The newspaper indicates ground shipments now reach destinations in roughly the same amount of time as airfreight and generally do so at about half the cost. Many companies are switching over to ground service to save money, as a result.
This represents a huge problem for the express-delivery industry, since ground shipments provide lower revenues than air for large courier companies like FedEx and UPS.
Improved ground service now competes very well within about a 500-mile area, but longer overnight shipments still need to travel by air.
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