Courier Care News Unwrapped – September 2025
- Courier Care Australia
- Sep 19
- 5 min read
Industry Snapshot Across States
Australia’s courier sector is very active in 2025, with strong parcel volumes, new rules coming in, and more companies entering the market. New South Wales, Victoria, and Queensland still handle most of the country’s parcels, but Western Australia and the Northern Territory are showing the fastest growth. WA recorded a 5.1% rise in online purchases year-on-year, the highest in the nation, while NT followed with 4.6%. South Australia and Tasmania also report steady growth. This shows that courier demand is strong across both city and regional areas, driven by e-commerce and customer expectations for quick, reliable delivery.
E-Commerce Demand and Volume Trends
Online shopping continues to fuel parcel growth. In 2024, 9.8 million households spent over $69 billion online. While growth has slowed in 2025, sales remain high, settling in the mid-$60 billions. Around one in seven households now buys online every week. Categories such as fashion and furniture continue to grow strongly, proving that convenience remains a top priority for shoppers even with higher living costs.
Busy shopping seasons are pushing volumes even higher. At Christmas 2024, Australia Post handled more than 102 million parcels, lifting annual revenue by 3.6% to $9.45 billion. Its Parcels and Services division grew to $7.64 billion, helping return the business to profit after the previous year’s losses. This shows how parcel growth is balancing the steady fall in letter mail. Private couriers are also finding opportunities as shoppers demand faster delivery and more options.
Infrastructure Expansion and New Entrants
To keep up with growth, carriers are investing heavily in new facilities and automation. Australia Post has opened new sites in Western Sydney and Melbourne and is building a large hub on the Sunshine Coast that will process up to 21,000 parcels a day during peak periods. These projects will improve capacity in regional and outer-city areas.
International players are also entering the market. Emirates SkyCargo launched its Courier Express service to Australia in July 2025, flying parcels directly into major cities and partnering with a local courier for last-mile delivery. This highlights growing global competition in express logistics.
Amazon is expanding too, investing more than $30 million in new delivery stations in Victoria and Western Sydney. Its mix of Prime delivery, Amazon Flex drivers, and franchise-style Delivery Service Partners is changing the last-mile model. These moves show how global companies are competing with, and sometimes working alongside, traditional courier firms.
Evolving Customer Expectations and Technology
Customers in 2025 expect deliveries to be faster, more transparent, and more flexible. Real-time tracking, narrow time slots, and multiple pickup options are now standard. Couriers are responding with new apps, automated sorting, and route-planning software.
CouriersPlease has launched CP Direct, a booking platform for small businesses, and grown its parcel locker network nationwide. The company says customers want more control over their deliveries, reflecting a shift to digital-first logistics. At the same time, the rise of online side businesses is creating new demand. Many Australians are selling products through Etsy, eBay, Shopify, and TikTok Shop to boost their income. CouriersPlease reports strong growth in this segment, with more than a third of Australians considering a side hustle in the next five years.
Sustainability is also a growing priority. Australia Post has added electric vans and e-bikes to its fleet, while other carriers are trialing greener depots and fuel-saving routes. With 77% of shoppers preferring eco-conscious retailers, pressure on the industry to cut emissions will only increase.
Regulatory and Economic Developments
The rules around gig work and owner-drivers are changing. Under the Closing Loopholes legislation, platforms and carriers must follow fair processes before cutting off contractors, and gig couriers can now appeal unfair deactivations. The Fair Work Commission is considering setting minimum pay and standards for gig workers, which could raise costs for carriers but also improve retention and professionalism.
Economic conditions are still tough. High fuel and insurance costs are squeezing margins, and retail spending slowed earlier in 2025 before recovering later in the year. Courier firms are now preparing for another record Christmas by hiring more drivers and sorters.
External shocks remain a risk. In August 2025, Australia Post had to suspend U.S.-bound parcels after changes to American import rules. Extreme weather, like the east coast cyclone in July, has also disrupted operations. These events show the need for strong contingency planning and clear communication with customers.
The Pricing Squeeze and Business Closures
Despite headline growth, the industry faces serious structural challenges. The biggest issue is pricing pressure. Large carriers often undercut each other to win contracts, pushing rates down to unsustainable levels. Smaller operators and owner-drivers are left with little margin, forcing many out of business.
This “race to the bottom” has led to ongoing closures of courier and transport businesses. Service quality and safety can also decline when margins are too tight. Without fairer pricing practices or stronger industry standards, the long-term sustainability of the sector is at risk - even as parcel volumes continue to rise.
Outlook
The industry outlook highlights many positives, including strong parcel demand, new investments, and regulatory reforms. However, operators face challenges that cannot be ignored.
Operating costs, fuel, maintenance, and insurance, are rising faster than contract rates. While automation improves efficiency in sorting centers, it does not ease delivery pressures on the road. Drivers and small firms continue to face heavier workloads without fair increases in pay.Growth of around 5% per year looks healthy, but much of this is captured by larger carriers. Smaller operators face slim profits, and franchise or subcontract models often shift costs and risks onto individuals.
Finally, when talking about flexibility, customer service, and sustainability, it is clear that not all businesses have the resources to keep up. Access to electric vehicles, advanced routing tools, or sustainable practices is uneven. For many smaller firms, meeting these rising expectations is difficult without greater support or structural reform.
References:
Australia Post – eCommerce Industry Report 2025 (Exec Summary)
auspost-report.s3.ap-southeast-2.amazonaws.comcep-research.com
ABC News – “Australia Post halts most parcel postage to US…” (Aug 25, 2025)
Australia Post – FY2025 Financial Results (CEP-Research summary, Aug 29, 2025)
CouriersPlease – 2025 and Beyond: CEO Forecasts (Media release, Jan 29, 2025)
CouriersPlease – Side Hustle Economy Booms (Media release, Jan 29, 2025)
RedSearch – Australian eCommerce Statistics 2025 (blog)
Emirates SkyCargo – Courier Express expands to Australia (press, July 2025)
Amazon Australia – Last Mile Network Investments (press release, July 1, 2025) aboutamazon.com.auaboutamazon.com.au
Safe Work Australia – Gig Economy Reforms (Minister’s release, Dec 13, 2024) ministers.dewr.gov.auministers.dewr.gov.au
The Guardian – Gig economy workers win new protections (Aug 27, 2024) theguardian.comtheguardian.com
Australia Post – Infrastructure Expansion (CEP-Research, Sep 15, 2025)
TFG Global – Freight Market Update July
2025tfgglobal.com.au (impact of extreme weather on ports)
Comments