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UPS Trade Direct comes to Japan

United Parcel Service Inc. has begun its first inbound Trade Direct service in Asia.
The Atlanta-based package shipper has debuted its UPS Trade Direct service inbound to Japan, making the service available from 50 origin countries in North America, Europe and Asia. The Japan service is the first Trade Direct inbound lane to be opened in Asia by UPS.

UPS Trade Direct is an international freight service that combines air or ocean freight transportation and customs clearance with package and less-than-truckload service for final delivery. UPS said the service offers faster transit and the ability to bypass traditional warehouses and distribution centers because shipments can go directly from airplane or ship into the local UPS delivery network. UPS introduced the service in 2002.

Trade Direct Air will serve the inbound Japanese market through Osaka and Tokyo, where UPS has daily flights from Anchorage, Alaska; Shanghai, and the UPS Asia Pacific air hub in the Philippines. Trade Direct Ocean will flow through the ports of Kobe and Tokyo. Within Asia, Trade Direct Air will be available from 25 air gateways across 12 countries and Trade Direct Ocean will be available from 27 ocean ports in 11 countries.

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FedEx buys out local franchisee for USD30 mn

This marks the direct entry of the USD33 billion FedEx, which has nearly 275,000 employees and 670 aircraft worldwide.Mumbai-based Prakash Air Freight Pvt Ltd, a privately held company, is one of the largest domestic companies in the industry with 384 offices serving nearly 4,400 destinations.

The two key promoters of Prakash Air Freight Pvt Ltd, Rajan K Manchanda and Vijay Narang, could not be reached for comments on their decision to cash out.FedEx applied to the Foreign Investment Promotion Board about two weeks ago for permission to undertake the acquisition.

After 22 years of operating in India through a franchisee, FedEx Corporation, the world’s largest express transportation company, has decided to acquire Prakash Air Freight Pvt Ltd, its sole franchisee in the country, for USD30 million in cash.

Sources said the deal, subject to the usual mandatory approvals, could be concluded in two weeks.

This acquisition comes close on the heels of TNT NV acquiring the Secunderabad-based road express company Speedage Express Cargo Services from Associated Road Carriers India for an undisclosed amount in September. Speedage posted a turnover of Ï17 million in 2005-06 (nearly Rs 100 crore).

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DHL solves transpacific lift problems with Polar Air

In a deal bound to increase competition for the high-value trade moving by air between the United States and China, DHL last month signed a letter of intent to pay USD150 million for a 49 per cent stake in pure freight operator Polar Air Cargo.

The deal, which will give DHL 25 per cent voting rights in the company owned by New York-listed Atlas Air Worldwide Holdings, also includes a 20-year agreement expected to reserve for the giant German shipper up to 50 per cent of Polar’s capacity across the Pacific. It is expected to be finalised within three months.

Although loath to publicly say so, DHL has been struggling lately to find enough scheduled transpacific lift at the right times from Asia to the US. With freight shipping demand in the region growing, the shortage looks set to grow more acute.

At present, most of the operator’s transpacific business is carried in the belly of passenger flights by long-time partner Northwest Airlines under a commercial agreement set to expire mid-2008. The US carrier has been a reliable supplier for DHL over the years but with exports from China booming, Asia’s biggest express operator needs an alternative.

With the Polar buy, DHL will solve its space shortage.

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USPS encourages mailers to use electronic documentation

The U.S. Postal Service is making every effort to help its 2.5 million business mail customers switch from hardcopy postage statements to a seamless, electronic acceptance method designed to improve efficiency and maximize ease.

According to an announcement made at the quarterly Mailers Technical Advisory Committee meeting at postal headquarters, all business customers–small, medium and large–can now submit postage statements electronically and gain online access to postal accounts in PostalOne, 24 hours a day, seven days a week.

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U.S. Postal Service awards Siemens major contract

Siemens announced that it has been awarded a USD109.4 million contract modification from the United States Postal Service (USPS) for additional mail sorting equipment. The scope of the award encompasses an additional 211 Delivery Bar Code Sorter (DBCS 6) machines to expand USPS’ existing fleet of letter sorting equipment. The company will provide installation and associated integrated logistics support services for the new machines in addition to carts used to transport trays of sorted mail. Production and installation of the DBCS 6 order is expected to be completed by Dec.1, 2007. The DBCS is the most widely deployed mail processing platform for letters within the Postal Service with more than 2000 machines operating nationwide. Almost every letter will pass through these machines several times as it makes its way through the postal network. Need for the additional equipment is driven by the 2 million delivery points, comprising U.S. households and businesses, which the Postal Service will be adding to its service over the next year.

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Postcomm welcomes the reappointment of Chairman Nigel Stapleton

Sarah Chambers, Chief Executive of Postcomm, the independent postal services regulator, today welcomed the reappointment of Nigel Stapleton as Chairman for a further four years.

Sarah Chambers said:

“We are delighted that Nigel Stapleton has been appointed for four more years as Chairman of Postcomm. The UK mail market has undergone significant change during Nigel’s Chairmanship, and it is certainly good news that he will carry on the important work we have started as Postcomm shapes the future of postal services regulation towards 2010 and beyond.”

Alistair Darling said:

“I am pleased to confirm that Nigel Stapleton has agreed to continue in his role as Chair of Postcomm. He has led Postcomm through a challenging period overseeing the introduction of competition and the new price control for Royal Mail. He is the right man with the right skills and experience to lead Postcomm in the years ahead.”

Nigel Stapleton said:

“It has been most rewarding to work with the very able and committed team at Postcomm over the past three years and to see the benefits to mail users from our initiatives to stimulate competition and innovation. I look forward to the opportunity to build on our progress and to help the team address the challenges that we know are ahead of us”

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