Regional Package Carriers Join the E-Commerce Rush (Wall Street Journal logistics report)
The operators are finding room to grow as retailers seek alternatives to the packed networks of the big parcel carriers.
ORIGINALLY PUBLISHED JUN 24, 2021 2:12 pm CST
Regional parcel carriers are expanding their reach as surging e-commerce demand fills up capacity at the national carriers and retailers seek fast, cheaper ways to ship packages to customers’ homes.
Operators including Austin, Tex.-based Lone Star Overnight LLC and LaserShip Inc., which delivers in the Eastern U.S. and the Midwest, are pushing into new coverage areas and investing in automation to help speed the flow of packages.
Shipping consultants say the regional growth is a boon to shippers scrambling to cope with accelerated digital demand since the Covid-19 pandemic, as delivery giants United Parcel Service Inc. and FedEx Corp. impose surcharges and limit some shipments to ease stresses in overloaded networks.
LSO, which serves Texas and Oklahoma, is planning a five-state expansion in early September to provide e-commerce and ground parcel delivery in Louisiana, Arkansas, Missouri, Illinois and Kansas. The company forecasts its e-commerce business will grow by 180% to 190% this year, and expects to be profitable in those five states within a few months, said Chief Executive Richard Metzler.
About LSO / Lone Star Overnight
Lone Star Overnight (LSO™) is headquartered in Austin, TX and over the last 30 years has become the leading regional parcel delivery company throughout the Southwest. LSO has a network of over twenty-three operating locations, serving the nearly 2,600 zip codes in Texas, 62% of the population of Oklahoma and Eastern New Mexico and Western Louisiana. LSO’s current service area covers approximately 8-10% of the B2C e-commerce orders delivered. LSO’s expanded geographic coverage will increase its footprint to nearly 12% of all e-commerce addresses in the United States. See lso.com for additional details.
About The Wall Street Journal
The Wall Street Journal was founded in July 1889. Ever since, the Journal has led the way in chronicling the rise of industries in America and around the world. In no other period of human history has the planet witnessed changes so dramatic or swift. The Journal has covered the births and deaths of tens of thousands of companies; the creation of new industries such as autos, aerospace, oil and entertainment; two world wars and numerous other conflicts; profound advances in science and technology; revolutionary social movements; the rise of consumer economies in the U.S. and abroad; and the fitful march of globalization.
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