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Supply Chain Vulnerabilities: Postal Systems

Illicit trade increasingly relies on the shipment of small parcels, a trend driven by the growth of e-commerce and the direct-to-consumer distribution of goods across borders. Small parcels allow illicit traders to move illegal products in high volumes while reducing their exposure to traditional customs controls designed to detect larger, consolidated shipments.

Postal and delivery networks are particularly vulnerable to this model. The sheer volume of parcels moving through global postal systems overwhelms inspection capacity, while limited resources, fragmented data, and uneven technological capabilities constrain effective risk assessment. As a result, illicit traders exploit small-parcel channels as a lower-risk alternative to traditional freight routes.

These vulnerabilities manifest differently across delivery models:

• Postal operators (i.e., national postal services responsible for universal mail delivery) often rely on legacy systems and manual processes. Limited access to electronic advance data, inaccurate declarations, and weak interoperability with customs systems constrain risk screening and allow illicit consignments to enter and circulate within the postal network.
• Express carriers (i.e., private courier and parcel delivery companies offering time-definite international shipping) typically operate more advanced tracking and data systems and are better equipped to support risk-based controls. However, gaps persist in data quality, the identification of certain categories of illicit goods, and consistent cooperation with enforcement authorities.

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Featured report

Exposing supply chain vulnerabilities to Illicit Trade

​This foundational report uncovers how global postal systems are exploited to transport illicit goods directly from illicit traders to consumers. The report discusses a joint survey conducted by the Universal Postal Union (UPU) with the support of TRACIT, which found that a large number of postal operators reported counterfeit goods as a major problem.
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Access the report here

Joint UPU-TRACIT survey on small parcels

This joint TRACIT–UPU paper draws on direct input from postal operators worldwide to shed light on how illicit trade exploits global postal networks. Based on a large-scale survey and cross-regional analysis, the paper provides an evidence-based foundation for understanding the scale of the challenge and the structural vulnerabilities affecting postal systems today. 
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Access the report here

MEDIA

Jeffrey Hardy joined the Universal Postal Union's Voice Mail podcast to discuss the dangers illicit trade on postal infrastructure ​Listen on:  SoundCloud   I   Spotify    I    Apple Podcast

Jeffrey Hardy discusses the TRACIT–UPU Memorandum of Understanding and its role in strengthening the security of the global postal supply chain.​

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EVENTS

TRACIT Addresses Illicit Trade in Small Parcels at the Universal Postal Union