The European 3PL Market. 2006
The European 3PL Market. 2006
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Target Express triples Birmingham capacity
Target Express has opened a new depot in Birmingham, which is expected to triple its capacity in the city. The 42,000 sq ft depot at Star City, close to Birminghams city-centre became fully operational on 22 May 2006. Target Express currently operates fifty-one depots throughout the UK and Ireland.
Read MoreGrowth and change drive the global 3PL market
Whether by acquisition, joint venture or alliance, consolidation in the third-party logistics (3PL) segment has been an almost daily occurrence over the last couple of years. This is one area where the global nature of logistics is clearly demonstrated.
Recent news that the European Court of Justice ruled the Dutch government’s “golden share” in TNT was illegal could facilitate two more acquisitions this year. TNT had announced its intent to exit the logistics business and concentrate on express and mail where margins are stronger. But, no word has surfaced on a potential buyer. German investor Cornelius Geber had expressed an interest in TNT, but his focus was on mail and express, not logistics.
The court ruling on the golden share defense could make TNT itself more attractive as a takeover target. Geber has not yet made any noises about reviving his interest in the company, but industry watchers note FedEx or UPS could be among prospective bidders for the express business. In fact, both have been jockeying for better global positions through expansions in Asia and Europe.
Read More17th Annual State of Logistics Report finds that rising prices and interest rates will soon push logistics costs above 10 percent of GDP.
Pressure on logistics costs has been building for awhile, and the results are evident: After declining for most of the last seven years, logistics costs as a percentage of the nation’s gross domestic product (GDP) are pushing upward.
For the past 17 years, the State of Logistics Report has given logistics and supply chain professionals insight into the economic forces that affect logistics costs. This year’s report, written by economist Rosalyn A. Wilson under the auspices of the Council of Supply Chain Management Professionals (CSCMP), places logistics expenditures at 9.5 percent of GDP. That’s a sharp departure from the three previous years, when those costs ranged between 8.6 and 8.8 percent of GDP (see Figure 1). And it’s perilously close to the 10 percent mark, a long-accepted demarcation separating reasonable and exorbitant cost levels.
Proposed USPS rate increases may influence express carriers' pricing
Earlier this year, the United States Postal Service (USPS) Board of Governors requested that the Postal Rate Commission (PRC) sign off on proposed increases for almost all of its domestic postage rates and fees, which would go into effect no sooner than May 2007.
The cumulative average of the proposed increases is 8.5 percent. Rates for priority mail and express mail would rise 13.8 percent and 12.5 percent, respectively. Parcel post rates would increase 13.7 percent.
Read MoreUnion Postale 2006 no 3
Union Postale 2006 no 3
Read MorePortugal CTT Profit Down 65.4 Pct Y/Y 2005
Portuguese postal service CTT-Correios de Portugal registered a 65.4 pct year-on-year decline in its 2005 profit to 17.3 mln euro ($22.07 mln), data from Portuguese news portal Diario Digital showed on June 30, 2006.
Read MoreTNT 'will not give up' on Japanese talks
TNT, the Dutch post group, has insisted talks to forge a joint venture with Japan Post are very much alive, in spite of the Japanese saying they have abandoned the plan.
Rebutting media reports that talks had broken down, Peter Bakker, TNT chief executive, said: “I want to emphasise we are still in discussions with Japan Post. We are confident we are making progress (so) we are not going to give up.”
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