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Presentation by Frank Appel on DHL U.S. Express Restructure Plans

Posted by | May 28, 2008 | |

Deutsche Post World Net unveiled a plan to restructure its DHL U.S. Express business. The plan will lead to sustainable improvements in financial performance and provide a sound starting point for a more efficient and customer-oriented business in the future. Under the plan, DHL U.S. Express will redesign the network to better match capacity with customer requirements and partner with UPS for airlift capacity on domestic and international Express products in North America. DPWN Chief Executive Officer Frank Appel presents the rationale behind the plan and the anticipated improvements.

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UPS to provide lift for DHL Air Express packages in North America

Posted by | May 28, 2008 | |

UPS announced it will work with DHL Express U.S. toward an agreement to provide transportation in its air network for all of DHL’s express, deferred and international package volume within the United States. UPS also would provide air lift for DHL packages between the United States, Canada and Mexico.

A final contract is anticipated later this year. The agreement, when finalized, would be expected to extend for 10 years and produce up to $1 billion in additional annual revenue for UPS. The company said it would begin phasing in a limited amount of volume in 2008 with ramp up in 2009.

The agreement would not involve the pick-up or delivery of DHL packages to their customers, only the transport of packages, primarily between airports, in North America. As such, the work will be similar to that currently performed by UPS for the U.S. Postal Service.

UPS will be able to handle much of the anticipated new volume in its existing air network, although additional capacity will be added beginning in 2009 upon full implementation. The total amount of capacity needed will be determined at that time; however, UPS is currently scheduled to take delivery of seven new aircraft in 2008 and another five in 2009. The company is also well along on a USD 1 billion expansion of its UPS Worldport air hub in Louisville, Ky.

The arrangement with UPS is part of a broader U.S. restructuring announced by Deutsche Post World Net at a press conference in Bonn, Germany.

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Deutsche Post World Net to restructure U.S. Express business

Posted by | May 28, 2008 | |

Deutsche Post World Net announced a plan to restructure its DHL U.S. Express business by working with UPS for airlift capacity and reducing costs in its ground infrastructure. Under the plan, DHL and UPS have agreed to develop a contract whereby UPS will provide air uplift for DHL Express U.S. domestic and international shipments within North America.

In addition, DHL will align its U.S. Express infrastructure to existing shipment volumes by redesigning its ground linehaul network to better match capacity with customer requirements. The impact on service levels will be minimal with less than 4 percent of shipments affected. DHL remains focused on delivering international and domestic Express products, offering an attractive alternative for U.S. customers and keeping a strong commitment to the U.S. market.

The restructuring plan will lead to sustainable improvements in financial performance and provide a sound starting point for a more efficient and customer-oriented business in the future. In 2008, the company expects an underlying EBIT loss of USD 1.3 billion in U.S. Express. Through the expected cost savings of around USD 800 million in 2010 and around $1 billion in 2011, underlying EBIT will improve accordingly. First positive effects of the plan will start showing already in 2009. The company expects to spend up to USD 2 billion to finance the restructuring plan.

Due to the uncertain economic situation in the U.S., Deutsche Post World Net is reducing its guidance for underlying EBIT in the EXPRESS Corporate Division in 2008 to around 400 million euros from around 500 million euros. Subsequently, the Group’s full-year guidance before non-recurring effects and restructuring costs will be reduced slightly by 100 million euros to around 4.1 billion euros.

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Online Retail Growth Is Slowing

Posted by | May 28, 2008 | |

Economic woes online, too?

Although consumers are reacting to the economic downturn by spending less, this will create more of a hardship for retail stores than for online retail outlets.

“Store sales will be hit harder than Internet sales because affluent shoppers, who form the core of online buyers, tend to ride out economic downturns better than lower- and middle-income consumers,” says Jeff Grau, eMarketer senior analyst and author of the new report, US Retail E-Commerce: Slower But Still Steady Growth.

eMarketer estimates that US retail e-commerce sales (excluding travel) will reach USD 146 billion in 2008, up 14.3% over 2007.

“Still,” warns Mr. Grau, “over the next few years online sales growth rates will steadily decline.”

There is little reason for panic, however.

“A drop in the number of new online buyers is an inevitable sign of the maturation of the online retail channel,” says Mr. Grau.

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EPFL – New master's for future postal leaders

Posted by | May 28, 2008 | |

Launched on 28 April, the Executive Master in Postal Leadership at the Swiss Federal Institute of Technology (EPFL) in Lausanne – Switzerland, is an advanced programme of continuing education, specially designed to address postal issues through an industry-wide, multi-stakeholder approach. This part-time programme is intended for senior postal managers with 10 to 15 years’ technical or commercial experience. The first intake comprises 10 students from six countries of Africa, Asia and Europe.

The UPU supports this training as part of the memorandum of understanding it signed with the EPFL in 2006, which aims to promote research and education in the postal field. In this connection, the UPU Director General, Edouard DAYAN, and a UPU economist, José ANSON, led two sessions on 5 May in Lausanne. Mr. DAYAN spoke about the important role of multilateralism in postal sector development in the current context of globalization, and about migration and the development of trade by micro, small and medium-sized enterprises, while José ANSON presented various models for postal sector development in Latin America, sub-Saharan Africa and the emerging Asian countries. Mr. DAYAN expressed his delight at the conducting of exchanges with students from around the world, and noted the fruitful collaboration between the UPU and the EPFL. Competition, regulation, the universal service obligation and innovation will be on the agenda of forthcoming sessions. In addition to postal issues, increased emphasis will be placed on management. Consequently, this master’s programme may be regarded as a sort of postal MBA. By the end of this training, participants will have acquired the skills to assume management responsibilities with public and private postal operators, regulatory authorities, governments, suppliers and strategic partners.

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ZIPCodeWorld™ USA Gold PO Boxes Database

Posted by | May 28, 2008 | |

ZIPCodeWorld™ United States Gold PO Box Edition consists of a list of more than 9,000 Post Office™ Box (PO Box) only ZIP codes, state and city name. It bundled with the ZIPCodeWorld™ US Gold Edition which covers 5-Digit ZIP code, city name, alias city name, state code, phone area code, city type, country name, country FIPS, time zone, day light saving flag, latitude, longitude, county elevation, Metropolitan Statistical Area (MSA), Primary Metropolitan Statistical Area (PMSA), Core Based Statistical Area (CBSA) and Census 2000 data in United States. The complete database contains over 80,000 precise records.

With the subscription of the ZIPCodeWorld™ database, developers and end-users can build applications to support business logics based on ZIP Code information. Free source codes in several programming languages are available in the Web site http://www.zipcodeworld.com/developers.htm to speed up the development progress.

The ZIP code information changes periodically. Since we update our products on monthly basis, we include a low-cost yearly subscription plan that allows customer to download updates anytime within a year. ZIPCodeWorld™ United States Gold PO Box Edition database is available from $99.95 onward. Internet download is available immediately once order approved. Please contact [email protected] or visit http://www.zipcodeworld.com for more information.

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DPD in Russia Announced 2007 Results

Posted by | May 27, 2008 | |

In 2007 DPD in Russia further strengthened its positions on the Russian transportation logistics services market. In total DPD in Russia delivered 3.5 million parcels for 14,000 customers across Russia, the total weight carried was around 100,000 tons. The turnover exceeded 2006 results by 41 pct.

As of autumn 2007 the business trades under the single international DPD brand. Transition to DPD brand means that the reliability of services rendered by DPD in Russia, staff professionalism and partnership customer relations are all in line with what today’s demanding customers expect from transportation logistics solutions in Russia and internationally.

The branch network of DPD in Russia further expanded in 2007 with the opening of 3 new branches in Irkutsk, Kemerovo and Surgut. By the beginning of 2008, the network of DPD in Russia comprised 25 branches. Each branch offers the complete range of services which DPD in Russia provides based on a unique express forwarding approach.

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