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DHL expands global network and operations with new state-of-the-art European air hub

DHL has officially opened its new European air freight hub at Leipzig/Halle Airport in Germany. The hub, one of Europe’s largest construction sites, expands DHL’s international network, providing greater connectivity to global growth markets and enabling DHL to improve its overall customer service.

Approximately 300 million Euros has been invested by Deutsche Post World Net in the construction of the DHL air freight hub Leipzig/Halle which enhances DHL’s speed, connectivity and reach in a number of ways. It is situated at a crossroads to provide direct North-South and East-West access to Europe, and connects both established and emerging markets in Central and Eastern Europe and Asia.

The decisive criteria for the choice of location were the position of the airport, its proximity to growth markets in Eastern Europe, the long-term planning security with comprehensive authorization for night-time flights, the wealth of motivated and highly qualified locally-based personnel, and impressive infrastructure which allows for a future-oriented combination of the carriers air, road and rail.

The hub comprises of a distribution center, an aircraft hangar, apron, tank station and administration building. The amount of freight transshipped every working day is currently around 1,500 tons per night but by 2012 this figure is set to rise to 2,000 tons.

Leipzig is the first DHL facility able to meet its needs for electricity, heating and cooling energy, to a large extent self-sufficiently. This is ensured by a cogeneration unit for combined heat and power generation, together with 1,000 square meters of solar cells on the roof of the hangar workshop for the generation of electricity from solar energy. In addition, two underground cisterns, with a capacity of 300 cubic meters each collecting around 3,000 cubic meters of rain water each year, will be used instead of drinking water to wash the aircraft.

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Pin Group liquidator mandated by shareholders to continue operations

The liquidator of troubled German mail services company Pin Group AG S.A., Bruno Kuebler, has been mandated to continue its business in case he fails to find a buyer for the group.

Kuebler said in a statement he is optimistic he will find a buyer for the company. He said he is still in talks with three unidentified potential buyers.

France’s La Poste walked away from talks at the end of March, according to the statement.

PIN Group ran into trouble in December when publishing group and majority stakeholder Axel Springer AG stopped funding it after the German government decided to introduce minimum wages to the postal industry. Some 40 of its 91 units have filed for insolvency.

The company in 2007 reached full-year sales of 278 million euros, below the 346 million target, and negative earnings before earnings and tax (EBIT) of 68 million.

Kuebler said in the statement PIN’s debt as part of the insolvency procedures amount to more than 200 million euros.

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Franchisees: UPS needs a better return policy

For many small business owners, franchising sounds like the perfect option–it allows you to own and operate a business while having the support of a well-established brand behind you. Yet, there is a darker side to franchising, one that often gets lost in years of court appeals and settlements. If you are looking to franchise, it’s important to pay attention to the fine print.

A David and Goliath battle between United Parcel Service and its franchisees recently turned into a win for the small business owners. In a case that has been going on since 2002, the former franchisees of Mail Boxes Etc. are suing UPS for contract and franchise agreement violations; saying the shipping giant failed them when it forced them to convert to UPS stores or to go private.

UPS bought Mail Boxes Etc., then a chain of 4,300 packing and shipping centers, in 2001 in an all-cash transaction for USD 191.0 million. Its previous owner, U.S. Office Products, had declared bankruptcy.

The California Appellate Court said on Friday that it would reverse the previous decision that was in UPS’s favor. The decision requires that the two parties now face each other in front of a jury.

“The Court of Appeals gave us a total victory. The court reversed every single claim that UPS/MBE made, and awarded costs on appeal to the plaintiffs. This is a complete repudiation of UPS’ and MBE’s position and was the last major hurdle for us,” said Howard Spanier, a former franchisee of Mail Boxes Etc. “UPS blocked my renewal as an Mail Boxes Etc. despite my franchise agreement allowing me to do so. They would only allow me to renew as a UPS Store. I considered that option to be financial suicide, since under the UPS Store business model profit is totally controlled by UPS.”

UPS’s annual revenues went from USD 29.7 billion in 2000, just prior to the acquisition of Mail Boxes Etc., to USD 49.7 billion in 2007. There are currently 4,647 UPS Stores worldwide and 1,306 Mail Boxes Etc. stores.

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Swiss Post launches parcel pickup service

Swiss Post Swiss Post has launched a fee-based service for the pickup of inland addressed parcels of private customers and small businesses.

The new pickup service can be ordered online via the internet and includes collection of a maximum of five parcels per day from an address which does not necessarily need to be the same as the sender’s address.

The service fee depends on the amount of parcels. Swiss Post is offering introductory prices until the end of the year: collection of one parcel costs euro 2,80 instead of euro 3,-, collection of two parcels cost euro 3,70 and collection of three to five parcels cost euro 5,55 instead of euro 6,20.

The new service complements the internet solution named WebStamp introduced by Swiss Post two years ago. With WebStamp, customers can stamp and personalise their shipments via the internet. The parcel pickup service enables private and business customers to handle all their shipments from home or the office.

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Agreement in principle on new collective labour agreement for TNT

TNT and the trade unions ABVAKABO FNV, CNV Publieke Zaak, BVPP and VPP reached an agreement in principle on a new one-year collective labour agreement in constructive negotiations. The agreement will come into force with retroactive effect to 1 April 2008 and will apply to all TNT employees in the Netherlands.
The unions will present the agreement to their members with advice to accept. This puts an end to the planned industrial action.
The key arrangements are as follows:
• All employees will receive a salary rise in the form of a structural increase of 3 pct with retroactive effect to 1 April 2008, plus 0.5 pct in the form of a monthly payment until 1 April 2009;
• The monthly payment of 0.5 pct will become a structural increase with retroactive effect to 1 April 2008 if a consensus is reached by no later than 1 April 2009 on the following:
o an Operations collective labour agreement for employees in scales 1 to 4 at TNT Post’s Operations business unit
o market-level terms and conditions of employment for Operations, Marketing & Sales and the policy and support units for employees who do not fall under the planned collective labour agreement for Operations
o market-level terms and conditions of employment for the employees of TNT Post Parcel Service, including the Transport unit
o a separate collective labour agreement for Express, TNT Head Office, Spring, Cendris and European Mail Networks (EMN)
o the monthly payment will lapse if no agreement is reached by 31 March 2009
• The agreement running until 1 April 2009 will not include any form of retrenchment in the terms and conditions of employment.

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Outrage as Royal Mail boss Adam Crozier picks up GBP 3m pay

Royal Mail boss Adam Crozier raked in GBP 3million last year as his company closed 2500 post offices, it was revealed yesterday.

And last night, the chief executive and other bosses were accused of rewarding themselves for failure.

The figures released yesterday showed Crozier’s basic salary in 2007-8 remained unchanged at GBP 633,000, but this was increased to GBP 843,000 because of an annual performance bonus and other benefits.

He also got GBP 1.99million for a long-term incentive plan covering three years and a cash supplement in lieu of pension of GBP 208,000, according to the Royal Mail annual report.

Royal Mail chairman Allan Leighton, whose pay and bonus remained at GBP 200,000, said of Crozier’s salary: “The payment covers three years during which the group has consistently exceeded expectations and met all the targets set by the shareholder.”

The annual report also revealed that Ian Griffiths, who left his job as managing director of the letters business last year, received GBP 500,000 as compensation for loss of office – after doing the job for only a year.

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Call to save Royal Mail by levy on rivals

The UK Government was urged last night to prepare to impose a levy on Royal Mail’s competitors to keep universal letter deliveries going — or risk the collapse of the service.

The warning came after Business Secretary John Hutton renewed the government’s commitment to a universal service — a nationwide delivery service at a single tariff — but insisted he must not pre-empt a study into Royal Mail’s future.

His comments followed publication of a report from a team in his department warning that opening up postal markets to competition has only benefited large companies, not small businesses or consumers.

The team warned Royal Mail’s financial stability is at risk and the present arrangement under which it is required to provide a universal service, while its competitors are not, is untenable. It is going on to consider whether there should be a levy on Royal Mail’s competitors to pay for the universal service obligation or whether the solution should be more radical and involve breaking up Royal Mail itself, with a separate body providing a simple delivery service at the expense of all the competing mail companies.

The issue was raised by Orkney and Shetland Liberal Democrat MP Alistair Carmichael, who urged that work on planning a levy to support the universal service should start now “because if we wait for further conclusions it might be too late”.

The Post Office is expected next week to announce the closure of dozens of branches in the north-east and Tayside. It has confirmed decisions to close 16 branches in the Northern and Western Isles on top of 38 in the Highlands and 40 in Argyll and Bute, Falkirk, Stirling and Greater Glasgow.

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Newgistics Receives Corporate Achievement Award for Innovations in Mailing Industry

Newgistics Inc., a provider of a postal-based, intelligent logistics solution for forward and returns shipping, announced it was honored with the prestigious 2008 Corporate Business Achievement Award from the United States Postal Service (USPS). As part of the National Postal Forum, the USPS recognized Newgistics for its dedication to innovation, teamwork, communication and customer satisfaction in the mailing industry.

Founded in 1999, Newgistics provides the only USPS-based forward and reverse shipping solution for leading retailers like Neiman Marcus, Road Runner Sports and Overstock.com. Newgistics’ Intelligent Logistics Management (ILM) solution is the industry’s first, highly-customized forward and reverse logistics offering that delivers unparalleled visibility, individualized reporting for streamlined inventory management, and a unique Web-based technology for easily tracking the return and delivery process. Newgistics also offers transportation management capabilities for Less-than-Truckload (LTL) and Truckload shipping.

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