Author: Archive

The price of posting standard first and second class letters in the UK has risen

Posted by | Apr 7, 2008 | |

For smaller items, first class stamps are now 38p instead of 36p and second class stamp now 27p instead of 24p. For larger items, first class has risen from 48p to 52p and second class from 40p to 42p.

Royal Mail says that stamped mail continues to run at a loss despite the increases – as much as GBP 178m in 2007. Royal Mail said that it is becoming increasingly difficult to maintain the subsidy on stamped mail whilst it was under so much pressure from competitors for business mail. Several key contracts have already been lost to rivals TNT Post.

Both Postwatch and Postcomm have said that it was essential that Royal Mail made greater efforts to be more efficient rather than rely on stamp prices to offset losses.

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SNCF may spend another 2 bln to 3 bln euros after Geodis acquisition – chairman

Posted by | Apr 7, 2008 | |

SNCF may spend another 2 billion to 3 billion euros on investments on top of the 600 million it is offering to pay for shares it does not already own in Geodis, Guillaume Pepy, chairman of the state-owned railway operator, told Le Figaro newspaper.

He plans further acquisitions, including an imminent one in Europe, and he is interested in port services to complete the company’s offering, Pepy said in an interview with the daily.

‘In a few days we will announce the acquisition of a continental European rail operator, which will open the door for us to new countries, notably Eastern Europe,’ he said.

The acquisition of Geodis, in which SNCF currently owns 42.37 percent, will make the transport of goods the group’s biggest division in terms of sales, Pepy said.

SNCF-Geodis will be among the world’s top five logistics groups, behind Deutsche Post AG unit DHL, Deutsche Bahn and Kuehne & Nagel International AG, the SNCF chairman said.

The Geodis deal will lift SNCF’s debt to equity ratio from 0.5 to 0.6, which is still only one-third of the level of Deutsche Bahn, and the imminent acquisition will not fundamentally alter those figures, he said.

‘That means we can still envisage profitable investments of 2 billion to 3 billion euros,’ Pepy said.

Shares in Geodis soared 30 percent today after Pepy unveiled that SNCF plans to offer 135 euros per share for the rest of the transport company.

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USPS: Online shipping discounts coming in May

Posted by | Apr 7, 2008 | |

For the first time ever, the U.S. Postal Service is offering discounts based on volume, as well as other incentives including online discounts, for Express Mail, Priority Mail and other shipping services, effective May 12, according to the USPS. These rate changes are now possible due to a change in federal law, enabling the Postal Service to better compete in the shipping market, said Steve Rifai, director of marketing for Endicia, an Internet postage service and an approved licensed vendor of the USPS.

“Before, you could negotiate rates, say, with FedEx, but you couldn’t with the post office because the rates were set by its over-site committee,” said Rifai. “Now with the new law, the post office can act as a competitive organization, so it has much more flexibility in setting prices.”

With the new rates going into effect May 12, the good news for e-tailers is that the post office is offering discounts for those who use online shipping tools.

Postal service shipping products are currently priced by a “one price fits all” approach — customers pay the same price per piece regardless of the number of packages sent or the method of payment. Beginning May 12, customers will be able to take advantage of commercial volume pricing, minimum volume rebates, online price breaks and other pricing incentives.

For overseas shipping, Rifai said there are additional discounts for e-tailers using online methods. Merchants will get an eight-percent online discount on Express Mail International, a five-percent online discount for Priority Mail International and a 10-percent reduction on Global Express Guaranteed.

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Deutsche Post CEO says no rush to sell bank -paper

Posted by | Apr 7, 2008 | |

Deutsche Post could take its time on any decision to sell its Deutsche Postbank unit, new Post Chief Executive Frank Appel said in an interview with the Frankfurter Allgemeine Zeitung.

“It’s true, we need clarity. But clarity can also mean not selling for the foreseeable future,” Appel said in comments to be published in the paper’s Tuesday edition.

Deutsche Post last month promised to decide soon about the future of Germany’s biggest retail bank, which is an attractive takeover target for other banks, but Appel said on Monday he was in no hurry.

“I’m not under pressure to act. Postbank’s business is going well and there is no reason to rush and certainly not to sell it below its value,” he said, adding that he was still discussing options.

Deutsche Bank and Commerzbank have signalled they would be interested in buying Postbank, which has about 15 million customers.

Appel also said he was confident of delivering a solution to restructure Deutsche Post’s loss-making DHL Express business in the United States in May as pledged. Turning the unit around and Postbank’s future are seen as Appel’s biggest challenges as CEO.

“We are well on time,” he said.

Appel added that Post did not have to have a partner for the U.S. domestic business, but he said: “Should there be a partner, however, who could improve the solution further, then we could also take them on board at a later date.”

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DHL India fears slump in business

Posted by | Apr 7, 2008 | |

DHL India is worried about getting hammered by an impending slowdown in certain sectors and the economic slump in the US.

Sectors such as textiles, apparel and leather have already shown a downturn in shipments.

“There has been a general slowdown which is not only because of rupee appreciation. However, the impact of the US recession will be indirect,” said Chandrakant Pitre, national marketing head, DHL Express India Pvt Ltd.

Pitre was in the city to inaugurate a 16,431-square-foot service centre, which will handle over 1,110 inbound and outbound shipments a day, weighing more than 1.3 tonnes.

Pitre said clients preferred the freight mode of delivery these days, which takes longer to deliver but costs less than the express mode, affecting the business of logistics firms.

However, DHL expects sectors such as pharma, auto, electronics and high-end products — all of which are on the upswing — to add to its coffers.

DHL will also rely on the presence of Blue Dart, in which it has an 81 per cent stake, to bolster its presence in the country.

According to industry estimates, the Indian logistics market is expected to reach USD 122 billion by 2015 from USD 45 billion now. Logistics costs in India are 13 per cent of its GDP compared with 11 per cent in Japan, 10 per cent in Europe and 9 per cent in the US.

DHL has invested around USD 300 million in the country in the past four years, including USD 163 million for an 81.03 per cent stake in Mumbai-based Blue Dart Express.

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FedEx Express named “Business Superbrand”

Posted by | Apr 7, 2008 | |

Business Superbrands has named FedEx Express as one of the UK’s top ten business brands in the Business Superbrands 2008 list.

Selected as a Superbrand for its commitment to both its customers and its staff, this achievement is an outstanding reflection of the strength of the FedEx Express brand and its brand values, with the ranking based on quality, reliability and distinction. FedEx Express was chosen following a selection process which included tapping into the views of an independent and voluntary council of experts and over 1500 business professionals, the latter surveyed by research agency YouGov.

As a Business Superbrand, FedEx Express is the only company representing the transportation industry in the top 20, demonstrating the strength of the FedEx brand.

Business Superbrands is a unique initiative from the Superbrands organisation, the global branding arbiters. Business Superbrands is in its eighth year and has become a key barometer on the performance of brands across a wide variety of sectors.

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DHL sets up service centre in Kolkata

Posted by | Apr 7, 2008 | |

DHL has launched a 16,431 sq ft service centre in Kolkata which will handle daily more than 1,110 inbound and outbound shipments, weighing more than 1.3 tonnes.

Kolkata, strategically located between India and Bangladesh, could emerge as an important trading bloc within India and South Asia, said Craig Grossgart, vice-president, India, DHL Express.

DHL also plans to launch a facility aimed at providing smooth shipment to India’s neighbouring countries, Grossgart said. “SAARC (South Asian Association for Regional Cooperation) is a big opportunity for us and we will look at launching a multimode transport system between the SAARC countries,” he said.

The scheme is currently in the pilot stage and the company plans to launch it by next month. The launch will reduce the transit time and also cut down costs significantly.

“Our costs will come down by 20 per cent and we will look at passing it on to our customers,” Grossgart said.

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