Local parcel carrier LSO expands coverage area

Regional parcel delivery company Lone Star Overnight (LSO) will expand its coverage in early September by adding markets to Louisiana and Arkansas and launching services in Illinois, Missouri, and Kansas. Announced.

An announcement posted on the company’s website last Wednesday expanded the state footprint of the Austin, Texas-based LSO to 10. LSO covers all Texas postal codes, its core market, and major commerce centers in Oklahoma, which occupy two-thirds. Of the state’s population.

Under the expanded network, LSO will launch services in Kansas City and St. Louis, extending to Kansas and delivering deliveries to the western suburbs of Kansas City, extending east from St. Louis to Illinois. It said the expansion of LSO Missouri would cover 90% of the state’s population.

In Louisiana, airlines add New Orleans, Baton Rouge, Lafayette, Houma, Hammond, and other cities along the 10 interstate highways that cross the state’s southern belt. We have already served Shreveport and Lake Charles. In Arkansas, LSO adds the Little Rock Metro area and an important northwestern quadrant of the state, including Fayetteville, Springdale, Rogers, and other neighboring areas. Bentonville, in northwestern Arkansas, is the global headquarters of retail giant Wal-Mart (NYSE: WMT).

LSO said it expects to reach 43 million consumers by expanding its network from its current 32 million. The LSO said it plans to deliver ground delivery from the Dallas hub to most zip codes in the new service area the next business day.

This expansion has been tuned to coincide with the beginning of another expected peak season for strong holiday deliveries for all types of parcel delivery companies. No one knows if e-commerce activity during this peak season will be as enthusiastic as last year. COVID-19 has hit most of the country, keeping people away from stores and malls and gluing them to digital devices. However, the 2021-22 peak is expected to be very strong, as e-commerce significantly increased retail sales prior to the pandemic and a significant portion of physical store traffic that shifted online does not return to stores. Will be.

CEO Richard Metzler said in a statement that the coverage area centered on the southwestern part of the LSO hasn’t changed much over the last three decades. At the same time, e-commerce and business customers are expanding their footprint as FSOs are eager to take advantage of delivery options other than FedEx Corp. (NYSE: FDX) and UPS Inc. (NYSE: UPS). I highly recommend that.

FedEx and UPS have achieved the strongest demand surge in parcel history, raised prices, and imposed what many shippers considered to be an extra charge during the nasty peak season. Carriers also impose caps on quantities and, according to Metzeler and other industry executives, either accept the revised prices and conditions of carriage or effectively tell large shippers to go elsewhere. It was.

Shippers’ anger at FedEx and UPS was apparent until mid-2021, with 1,400 shipments with approximately 72 hours of notification instead of the traditional 30-day notification period by FedEx’s LTL unit, FedEx Freight. Amplified by the early June move to delete human accounts.

“People are angry with FedEx and UPS, which is internal,” Mezztler, one of the industry’s most outspoken telco critics, said in a telephone interview Tuesday. However, many shippers rely heavily on carriers to move their luggage, so “nothing. [shippers] I can do that, “he said.

Regional carriers experienced the same surge in demand in 2020 as major carriers. Faced with a large supply-demand imbalance and unwilling to compromise service to existing customers, carriers were forced to abandon new businesses as early as August or September.

According to Metzeler, the delivery situation for autumn and winter is more organized than it was a year ago when the shipper’s idea was to move parcels regardless of cost. At the midpoint of almost a year, shippers can better understand their peak season needs and expand their operations accordingly. For LSOs, according to Metzeler, the problem is primarily with the customer side of IT and operations integration.

According to Metzeler, the outlook for demand has been very solid until peak times and is likely to continue. Local parcel carrier LSO expands coverage area

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