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UPS environmental achievements recognized by EPA

Citing UPS’s alternative fuel program and fuel conservation initiatives, the US Environmental Protection Agency (EPA) has honored the company with its distinguished Clean Air Excellence Award. The annual award recognizes organizations that improve air quality through innovative environmental programs. UPS was honored in the “Transportation Efficiency Innovations” category for expanding its alternative fuel fleet program and for other fuel conservation efforts. UPS has been adapting several new technologies for use in its large truck delivery fleet, including hybrid electric, hydrogen fuel cell and hybrid hydraulic vehicles, while deploying route planning software and taking other steps in the air and on the ground to reduce emissions and save millions of gallons of fuel annually.

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Finance minister suggests corporatizing Russian mail service

Russia’s Finance Minister Thursday suggested that the country’s state-owned postal monopoly should be corporatized. “Attracting private investors… will make it possible to modernize Russia’s postal services thanks to billions of dollars in private investment,” Alexei Kudrin told a Cabinet meeting. First Deputy Prime Minister Dmitry Medvedev welcomed the idea, saying: “Obviously, the mail [network] is an infrastructure and monopolistic area, and in desperate need of investment.” But Medvedev called for extreme caution in making the shift, given the vital social role of postal services in communities throughout Russia. Igor Syrtsov, the company’s chief executive, said last Friday that it would incur losses of USD36 million in 2006.

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Dutch TNT sues UK tax department

Dutch TNT NV has filed a lawsuit against the UK tax department, TNT’s director public affairs, Nanno Aukes, said on April 5, 2006. The postal division of TNT believes it is seriously hampered in the UK postal market by the local tax authorities. The UK tax department abolished at the beginning of 2006 an earlier granted exemption from value added tax (VAT) to TNT, Aukes said. The tax exemption was granted to TNT because the company is partly operating as agent of Royal Mail in the UK. Royal Mail, which has been granted a full VAT exemption in the UK, enjoys great competition advantages as a result, Aukes added. TNT did not announce any figures relating to its revenue in the UK postal market. Revenue from postal services within Europe, excluding the Netherlands, stood at 600 mln euro (UD728.3 mln) in 2005 while the UK is considered to be a key market.

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FedEx Express eyes China's rising MSMEs delivery market

FedEx Express announced on April 5 that it will supply seven new kinds of packing materials specially for China’s micro, small and medium-sized enterprises clients. It’s the first time FedEx has provided new packing materials specifically for the Chinese market. Currently, FedEx has offered 16 kinds of packing materials free of charge to its Chinese clients.

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Networks to speak with a single voice

Pallet networks are poised to form their own trade association, although levels of enthusiasm vary.
It will be led by Paul Sanders, who founded Weaver Pallet Express and then sold it to Business Post, where it was renamed UK Pallets. He remained as MD until last autumn.

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UPS expands air network in China

UPS today announced the start of direct air service from Shanghai to Europe along with the addition of three new flights connecting Shanghai to the US and another new flight between Qingdao and Incheon, Korea. “UPS now flies to more points in China than any other US airline, freight or passenger,” said David Abney, president, International Operations. “These new flights are part of our strategy to expand our service options, stay ahead of customer needs and solidify our position as the leader in the world’s fastest growing market.”
UPS will utilize MD-11 aircraft to fly from Shanghai to Cologne five times a week. In addition to the new service to Europe, UPS has added three new frequencies on its Shanghai-US route, increasing to nine times per week the number of non-stop flights on that lane. The number of UPS flights into Qingdao, a major port and manufacturing center, now has increased to six per week.

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Target builds on its 3M success

Target Express has increased volumes on its contract with technology company 3M to 5,000 consignments a week following a trail period.
Target says it provides 3M with several added value services including an IT system which integrates with 3M’s own IT system and some of its suppliers.
Roy Bufton, 3M’s transport and DGSA manager UK and Ireland, says: “The added-value elements to the service are what really make a difference for us, and it is in this area that Target really comes into its own.

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DHL is struggling to deliver in the US

DHL is a wildly successful brand – on the surface, at least: it is the biggest express carrier in both Europe and Asia, with a 40% share in each market. In the US, however, it has a paltry 7% market share. The delivery market there is dominated by UPS and FedEx, which enjoy a combined 78% market share. To most marketers, the strength, scale and incumbent power of UPS and FedEx would make the US just about the least attractive target market imaginable. But two strategic factors peculiar to the global delivery business mean that DHL must succeed there.

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