This article discusses the development of express freight transport in Europe which has developed considerably during the last decade. Several reasons can be given for this. First there was the increased demand from shippers who changed their logistical structure and were more dependent on fast and reliable transport. Also the increased globalization of production has formed a major factor. At the same time express transport market was confronted with a new phenomenon: the integrator. Emerged from the liberalized air transport industry in the USA, this concept was quickly adopted in the rest of the world. The introduction to the European market was held up because of the special structure of the European market with its specific market structure and problems due to border crossings. The integrators that entered the European market quickly conquered an extensive market share of the fast growing market. The reaction from their competitors - airlines, postal services and express road companies - came rather late and will perhaps be inadequate to recover the lost ground. Large investments by the integrators have already been made and they are ready for the single market to come. The challenge lies upon the airlines in order to cope with the emerging circumstances of a deregulated air market in Europe and growing problems due to congestion at airports and environmental restrictions. Furthermore, the public postal companies are faced with a considerable task: they have to modify their nationally oriented structure and offer a competitive product in a liberalized market of postal services. This paper will discuss the likely outcome of this 'battle for Europe' and the options public policy has to influence this outcome in a desirable way.
Abstract