The week that was: 30 November 2012
Rounding up the biggest stories of the week on Post&Parcel, including a major parcel industry consultation in Europe, and the latest on the UPS and TNT Express merger…
EU considers price caps for cross-border ecommerce delivery
The European Commission is looking at possible price caps to bring down costs of delivering parcels, including ecommerce items, across borders within Europe.
The European Union’s executive branch issued a green paper this week seeking a “truly integrated” single EU market for parcel delivery. It said only 9% of EU consumers are currently buying goods online, with doubts about whether goods will arrive seen as one of the key barriers.
Werner Stengg, the Commission’s Head of Online and Postal Services, one of the leading figures behind the process, said there was “tremendous potential for further growth” in cross-border ecommerce if the barriers were dealt with.
UPS and TNT offer remedies to win EU backing for merger
UPS and TNT Express have proposed the sale of certain business activities and assets in a bid to persuade European competition authorities to allow their merger.
The two companies issued a statement confirming that they have now submitted the offer to the European Commission. However, they provided no details on what is being offered for sale.
“The discussions are ongoing, which means that the offered remedies may be subject to change,” the companies said in their joint statement. The Commission will model the proposed remedies on a “confidential basis” before deciding if it is an acceptable way forward.
USPS makes profit in October, predicts 50% cut in losses
The US Postal Service made a $61m profit in October, and even achieved 5.6% growth in its mail and services revenues compared to the same month last year.
And for the full year, the world’s largest postal service said it is now projecting that it will cut its losses in half, to $7.6bn for the fiscal year 2013.
But writing in Post&Parcel this week, Art Sackler, of industry group Coalition for a 21st Century Postal Service, said US lawmakers worried about the economy urgently need to resolve problems with the Postal Service.
Siemens to sell post and parcel automation division
German engineering giant Siemens has decided to sell off its postal and parcel sorting business, as part of a major restructuring of the company.
The firm told investors yesterday that after reviewing the business over the past month, it came to the conclusion that the division would fit better into a “mid-sized company” than remain within Siemens.
The company is selling off the mail part of its business along with its baggage and air cargo handling division to increase its profitability, and is now searching for a buyer with expectation of a sale next year.
