Types of Courier Services and Service Providers

Standard courier services involve collecting the parcels, sorting the parcels, and transferring the parcels to the closest depot to the delivery location.

Ally Schmidt - Author

Jul. 17 2015, Published 9:16 a.m. ET

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Types of services

Courier companies offer different services, so customers can choose among different options, depending on their budget and needs.

  1. Standard courier services involve collecting the parcels, sorting the parcels, and transferring the parcels to the closest depot to the delivery location. The parcel is then loaded on a van and delivered to the desired destination. This service takes a few days, and it is generally the cheapest of all courier services.
  2. Overnight service is the same as standard service, but slightly more expensive, and the parcel is guaranteed to be delivered by the next day.
  3. Same-day express courier is the most expensive of all courier services and used for deliveries that are of an urgent nature.
  4. International courier service is used for transfer of goods overseas. The price varies greatly depending on the size of the package and speed required.
  5. Pallet courier services are used for delivering goods on pallets. This service offers strict delivery schedules at affordable rates.
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Types of service providers

  1. Carriers are large delivery companies that have a wide delivery network and a large fleet. Their fleet includes airplanes, trucks, vans, and ships. Carriers offer an entire supply chain solution for a large variety of goods. FedEx (FDX) and United Parcel Services (UPS) are examples of carriers.
  2. Freight forwarders are subcontractors to airlines or carriers. Most freight forwarders offer specialized services like pallets, parcels, or bulky goods transport.
  3. Haulage services transport bulky and heavy goods. Haulage services are not trackable like the services of carriers or freight forwarders. Most hauliers make use of rail networks like CSX (CSX), Norfolk Southern (NSC), and Union Pacific Corporation (UNP) to transport goods.

FedEx forms the largest holding in the iShares Transportation Average ETF (IYT) with a 13.14% weight.


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