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DHL announces rates for 2007

DHL Express (USA), Inc., today announced new list rates for 2007, including a 3.9 percent increase in the net average shipping rate for DHL Domestic Air Express and International Express, and an average increase of 4.9 percent for DHL Ground shipments and for DHL@home. The increase for air express and international shipments is comprised of a 5.9 percent average increase in the base rates, offset by a 2.0 percentage point reduction in the Air fuel surcharge index. The new rates will be effective January 1, 2007.

In the first quarter of 2007, DHL will add a new dimensional weight system for oversized Ground shipments. If the dimensional weight is greater than the actual weight, dimensional weight will apply to Ground shipments that are three cubic feet (5,184 cubic inches) or greater. Packages less than three cubic feet will be billed based on actual weight.

Other changes effective January 1, 2007 include a USD0.10 increase in the surcharge for Residential Delivery and for both residential and commercial Delivery Area Service. The Remote Area Service fee will increase by USD2.00. Additional details of the 2007 fee and rate changes will be available at www.dhl-usa.com as of December 15, 2006.

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Royal Mail’s First Class service the best ever

Royal Mail’s quality of service to customers is at its highest level ever, as the latest figures show. In the second quarter of 2006-07 (end of June to early September), 94.5% of First Class letters arriving the next working day after posting. This is the best performance of any quarter on record, and exceeds the 93.0% national target.

Second Class mail also beat its 98.5% target, with a 99.1% performance over the same three-month period – also the best second quarter result on record.

“These are great results and confirm we are delivering the best ever quality of service to our customers,” said Ian Griffiths, Managing Director, Royal Mail Letters. “This is thanks to the hard work and dedication of all our postmen and women who do a first class job day in, day out.”

Mail services used by larger businesses also exceeded their targets. These include Mailsort bulk business mail services, Presstream for magazine mailings and PPI (printed postage impression) items.

Royal Mail’s Standard Parcel service recorded a performance of 95.2% – well above its 90.0% target. Royal Mail’s Special Delivery guaranteed next day service also exceeded its target – with a 99.1% performance against its 99.0% target.

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Target Express acquisition and Electronic Security strategic review

Q.
You’ve made two announcements today: the acquisition of Target Express and a strategic review of the Electronic Security business. If we look at Target Express first, what’s the rationale behind that deal?

A.
We’ve announced that we’re going to buy Target Express for some £210m. It’s a highly complementary business with our own business, City Link, in the next day express parcel delivery business.

Our City Link business has continued to take market share every year for the last decade and Target Express has got a similar high growth profile. Between the two of them they add up to putting us in a close second position behind DHL.

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Rentokil Initial acquires Target Express to create leading overnight parcel delivery business

Rentokil Initial plc today announces that it has, through a subsidiary, made an offer to the shareholders of Target Express Holdings Limited (“Target Express”) to acquire the entire issued share capital of Target Express on a cash and debt-free basis for a cash consideration of GBP210 million, to be satisfied from existing resources. This offer is unconditional and acceptances have been received in respect of 90% of the share capital with the balance expected no later than the end of the year.

Target Express provides a full range of premium parcel delivery services for customers throughout the UK, with its main focus on overnight timed deliveries. It operates from 39 branches with a main hub in Coventry. Revenue has grown strongly in the business under the new management team that took charge in 2002. Turnover and operating profit (before amortisation and exceptional items) of Target Express for the year to 30 April 2006 were GBP146.1 million and GBP17.3 million respectively.

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Double the Glory for Neopost as it claims two awards

Neopost is delighted to announce that it has been honoured with two major industry awards. The i-Weigh, its leading dynamic scale introduced in response to the introduction of Pricing in Proportion (PiP) which came into effect in August this year, was awarded Triangle’s UK Mail Technology Award.

Additionally, Neopost was announced as the Parcelforce Vendor of the Year 2006 by Royal Mail Group for its innovation, technology and in particular the development of Frankpay.

The Triangle’ UK Mail Awards, which acknowledges the domestic UK postal industry, awarded Neopost’s franking solution – the i-Weigh, its prestigious technology award at a ceremony held on Tuesday, 31 October. The i-Weigh has the ability to check the weight and size of mail, while in motion at speeds of up to 120 items per minute, and calculate the correct postal rate according to PiP pricing tariffs. “We are proud that the i-Weigh has been acknowledged for its innovative and PiP-friendly design. The technology category is intended to identify new and proven technology products or systems that have provided either cost savings or an improved service to the customer, and it is gratifying that the i-Weigh is recognised as the leading solution to achieve this in 2006,” stated David Glover, Neopost Managing Director.

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Postcomm consults on Royal Mail's 'complicated' compensation schemes

Postcomm today launched a consultation on Royal Mail’s current compensation schemes for loss, damage and delay which many customers are finding difficult to understand and use.

Royal Mail’s currently has four compensation schemes for loss and damage. Postcomm is proposing that Royal Mail introduces a single loss and damage scheme governed by a clear and simple framework of principles.

The consultation also seeks views on whether, now competition has started to develop, it remains appropriate for Postcomm to require Royal Mail to pay compensation to bulk mail customers for delivery delays and, if so, what type of scheme should be required for these customers in the future.

Postcomm chairman Nigel Stapleton said:

“Royal Mail’s current compensation schemes for loss and damage have developed over many years and have become difficult for customers to understand. We think it important to cut through this complexity and make sure mail customers have access to a clear, fair and user-friendly compensation system.

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The logistics industry must focus on security

Pan Nordic Logistics (PNL) is currently focusing on security and is preparing to set up a special group to investigate thefts and other security incidents.
Security issues must be given greater priority within the logistics industry, says Bengt-Eric Johansson, the new security manager at PNL.

PNL is currently putting together a security group and encouraging the logistics industry as a whole to focus more on security.
It will soon be Christmas, which is our busiest time of year for parcels. It is particularly important to be able to guarantee that presents will actually arrive, says Bengt-Eric Johansson.

PNL is a leading player on the Nordic market when it comes to parcels and pallets thanks to its strong network and committed partners. By focusing on security, the company wants to encourage the rest of the logistics industry to take a greater interest in the issue.

PNLs new security manager Bengt-Eric Johansson says that security should be a hot topic within the industry.
The logistics industry has been noticeably reticent on the issue of security for goods. We in the industry should act as one to push this issue further up the agenda, says Bengt-Eric.

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NIK Critical of Restructuring at Poczta Polska

On Tuesday, the Supreme Board of Inspection (NIK) made public its report on organisational changes at Poczta Polska mail introduced last year. The NIK positively assessed Poczta’s development strategy for the years 2004-2006, yet it was critical of its implementation, which – in its opinion – was done in haste. Poczta Polska admitted the organisational restructuring was conducted too fast and chaotically. They said it led to lower service quality indices and growing customer discontent. Meanwhile, negotiations behind closed doors between Poczta’s striking employees and the company’s authorities took place yesterday. The mail’s spokesman Radoslaw Kazimierski said that over 95 percent of protesting workers had returned to their duties. Recipients of letters and parcels have started to receive delayed deliveries. In Kazimierski’s opinion, liquidating the strike’s results will require several days of intensive work.

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