Author: Archive

Otto Gruppe to open up distribution network to external customers

Posted by | May 16, 2005 | |

German mail order company Otto Gruppe is planning to open up its distribution network to external customers, according to a report in German daily Die Welt to be published tomorrow, citing unidentified sources.

Otto, which has been using its seven distribution centres and warehouses for the company’s own distribution needs, wants to offer its services to external customers in a bid to counteract falling sales at its German mail order business, which dropped around 5 pct last year, and to compete with rivals such as Deutsche Post AG’s DHL unit, the newspaper said.

The company is currently developing a plan on how to open up its business, with a final decision expected by mid-July, it said.

Otto Gruppe declined to comment, Die Welt added.

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Push to partly privatise the UK postal service

Posted by | May 16, 2005 | |

Allan Leighton, Royal Mail chairman, will push for a meeting with ministers this week to discuss a John Lewis-style partial privatisation of the state-owned postal operator in which staff would gain a stake.

The plan is for Royal Mail to borrow an extra GBP 2 billion against its balance sheet. Part of the cash would be used to buy a slice of the government’s 100 per cent shareholding held on behalf of staff in an employee share ownership trust. A further section of the capital would be allocated to address the GBP 2.5 billion pension deficit.

Royal Mail is set to report record results tomorrow with annual operating profits in excess of GBP 500 million, compared with GBP 220 million 12 months ago, and a significantly improved delivery performance.

This is well ahead of previous estimates and will enable Royal Mail to pay each of its 195,000 postal staff and other employees a bonus of more than GBP 1,000.

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DX Services breaks UK Royal Mail’s pillar box monopoly

Posted by | May 16, 2005 | |

Royal Mail’s 150-year monopoly on pillar box deliveries is to be broken by a new rival in the partially deregulated postal market.

DX Services, the only other UK postal business to run an end-to-end delivery network, has installed blue pillar boxes to take business-to-business letters and packages in 96 outlets of retailer Mail Boxes Etc.

Items posted in the boxes will be delivered to company addresses overnight, with the option of bar-code tracking and a customer signature on delivery.

However, customers will only be able to post items during office hours since the DX pillar boxes will remain inside the Mail Boxes Etc outlets.

Peter Brougham, DX chief executive, said his company’s new service would offer small to medium-sized companies “a real alternative” to the existing postal service.

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US FedEx taking advantage of UPS pilots’ strike vote

Posted by | May 16, 2005 | |

With a majority of UPS’ pilots recently voting to strike, analysts say FedEx is taking advantage by offering its 4,300 pilots more than USD500 million in raises and signing bonuses if they agree to work under their 1999 contract and cease negotiations.

“If you are Brand A and you see Brand X in negotiations, your greatest desire is to get your deal done first so the other guy is forced to bargain based on your deal,” said David Field, Americas editor of Airline Business, a London-based monthly magazine. “Whoever signs first stands to have a 1 percent or 2 percent advantage.”

The Independent Pilots Association, which represents Atlanta-based UPS’ 2,483 pilots, and UPS company officials have been in federal mediated talks since last June but have not been able to reach agreement on issues involving scheduling, scope, compensation, pension and benefits.

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Moya Greene appointed new President and CEO of Canada Post

Posted by | May 16, 2005 | |

John McCallum, Minister Responsible for Canada Post, today announced the appointment of Moya Greene as President and Chief Executive Officer of Canada Post. “Ms. Greene comes to this position with significant federal government and private sector management experience,” said Minister McCallum. “I am confident that she will provide strong leadership as President and CEO of Canada Post, and that she will contribute to the future successes of the Corporation.”

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Mail Boxes Etc to distribute DX Services B2B mail

Posted by | May 16, 2005 | |

UK independent mail delivery company DX Services PLC said it has agreed a partnership with Mail Boxes Etc to distribute its mail services through Mail Boxes Etcs UK high street outlets, confirming an earlier press report.

Customers will be able to post letters and packages to business addresses at participating MBE outlets. Mail Boxes Etc has 96 franchised outlets spread nationwide.

Peter Brougham, chief executive of DX Services, said: This partnership offers small to medium sized enterprise customers a real alternative to the current postal service.’

Terms were not disclosed.

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UPS adds ground freight options by acquiring Overnite Corp.

Posted by | May 16, 2005 | |

UPS and Overnite Corporation today jointly announced a definitive agreement for UPS to acquire Overnite for USD43.25 per share, or approximately USD1.25 billion in cash. The transaction will allow UPS to expand its service portfolio by offering a variety of less-than-truckload (LTL) and truckload (TL) services to its North American customers. It also will immediately position UPS as a top US LTL carrier and comes just five months after the company expanded its air freight services by acquiring Menlo Worldwide Forwarding. The acquisition, expected to close during the third quarter of 2005, is an all-cash transaction that will require regulatory approvals and the approval of Overnite’s shareholders. The Overnite Board of Directors has unanimously approved the agreement and recommended approval by its shareholders.

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Irish An Post seeks to raise prices

Posted by | May 15, 2005 | |

An Post is seeking permission to raise the cost of ordinary letter postage from 48 cent to 60 cent.

Minister Brennan should not only carefully examine this latest hike in prices, but also examine the management and responsibilities of An Post. This body, it seems, can do as it pleases – and continues to do so with impunity.

Blackrock is one of the main suburban towns of south County Dublin. It has a large population which is growing, and business is also growing. This community was formerly served by a main post office on the Main Street in Blackrock, which has been closed for several months now.

Its function has been transferred to a pokey little sub-post office less than a quarter of the size, located at the back of a supermarket and closing for lunch each day.

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