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Chronopost launches new next-day express service and eBay partnership

Posted by | Mar 6, 2008 | |

Chronopost has launched a new express shipping solution “Prêt-à-Expédier” (“Ready to ship”) and improved the shipping service of express parcels on eBay France to better respond to customer needs.

The new shipping solution “Prêt-à-Expédier”, offered in post offices, provides next-day delivery before 13:00 within France, including packaging and transportation. It will be extended to international destinations by end-2008.

Chronopost said the new service targets small- and medium-sized enterprises. A survey last November found that 63 pct of SMEs used next morning express delivery services. In future, its “Chrono 18”, with delivery by the end of the next working day, will be reserved for contract customers.

The new “Prêt-à-Expédier” product range offers five packaging sizes (for weights up to 500g, 1kg, 2kg, 3kg and 6kg) and includes insurance, track-and-trace and POD. The minimum price is EUR 17.56.

Meanwhile, Chronopost has signed a partnership with eBay in France to enable customers to buy and to prepay online their express shipments saving time and ensuring traceability. Customers also receive a 7 pct discount off the delivery price.

EBay users can select transportation by Chronopost and are redirected to the express company’s website. There they can enter their shipment details and print off an airway bill to affix to the shipment. This can then be taken to a post office, Chronopost agency or Chrono Relais service points for pick-up and delivery.

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FedEx Recognizes Diverse Staff in Honor of International Women’s Day

Posted by | Mar 6, 2008 | |

FedEx Express in honor of International Women’s Day on March 8, underlines its commitment to foster a positive work environment in which all its employees have an opportunity to achieve their personal career aspirations.

FedEx is committed to supporting all their employees and has won recognition across the world for its ongoing drive to hire the right people for the right jobs irrespective of gender, ethnicity, sexual orientation or creed.

The logistics industry has traditionally been perceived as male-orientated. FedEx has implemented a number of schemes across Europe, the Middle East, Indian Subcontinent and Asia to hire and retain a diverse range of staff. FedEx employees play a central role in helping the company fulfil the needs of its diverse customer base.

FedEx Express in the UK caters for all its staff by offering flexible working arrangements beyond the statutory requirement which states that parents with children under the age of six must be offered flexible working opportunities. Additionally new mums receive a welcome bonus on returning to work from maternity leave.

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U.S. Postal Service – Declining Mail Volume

Posted by | Mar 6, 2008 | |

A fight back on Junk Mail by some 18 states in the US, as well as declining mail volumes has created a GBP 1 billion deficit for the U.S. postal service.

A decline in mail volume, particularly from domestic mail users, has seen postal operators increasingly reliant on Junk Mail but with real concerns over the quantity of paper being used that stretches the recycling capability of many towns and cities, many see the Junk Mail era as a short-lived one.

The U.S. could see more post offices located in other outlets to reduce costs, a trend already being established in the UK.

Increased competition in the U.S. is also putting pressure on the U.S. postal service. Rivals such as German-based DHL, FedEx, UPS and others are all contributing to a gradual decline in profitability and the U.S. postal service is urgently looking at ways to curb spending including reduced overtime and using more part-time workers.

Steve Lawson, editor of Hellmail.co.uk said:

“Whilst the internet age has transformed the way we all communicate and do business, it has undermined the role of postal services to such an extent that few of us actually post many letters now. The problem is a global one, not made easier by deregulated postal markets and greater competition for what were once public-sector services.”

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FedEx, UPS look to gain if DHL scales back

Posted by | Mar 6, 2008 | |

Analysts expect money-losing DHL will scale back in the United States and could make the announcement as early as today, handing FedEx Corp. and UPS a boon.

If DHL closes terminals and hubs, analysts say FedEx could get 35 percent of the lost business in the air and another 25 percent on the ground.

If the restructuring costs DHL 2 percent of revenue, FedEx stands to gain USD 45 million in business, according to a research note published Wednesday by Edward Wolfe. UPS, which has a more powerful ground network, stands to realize USD 71 million.

DHL is the fourth-largest player in the U.S. overnight package business, with revenues in the Americas for 2008 estimated at USD 2.3 billion.

With 9 percent market share, DHL trails the U.S. Postal Service, (32 percent) FedEx (31 percent) and UPS (25 percent).

DHL joined the competitive U.S. overnight business in 2003 when it purchased Airborne Freight for about USD 1 billion, rankling FedEx and UPS, which accused the monopoly Deutsche Post of investing in a U.S. carrier to fight them on their own turf.

Both pressed the issue in lawsuits, which Airborne eventually won.

Airborne was the low-cost alternative to the big players, claiming about 10 percent of the domestic air express market and 2 percent on the ground.

DHL came in promising a threat to the established carriers, but in reality has kicked little sand in their faces, mostly because it has made a series of integration and operational errors that shook customer confidence.

Analysts estimate DHL has lost USD 2.8 billion in North America, including a recent USD 748 million write-down in the United States alone, where it has also announced 600 layoffs.

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Deutsche Post World Net 2007 underlying EBIT at 3.8 billion euros

Posted by | Mar 6, 2008 | |

Deutsche Post World Net reported earnings before interest and tax (EBIT) of 3.8 billion euros before non-recurring effects for the 2007 business year, an increase of 8 percent compared with the year-earlier level. Underlying EBIT was in line with the Group’s business expectations and guidance. Reported EBIT was 17 percent lower at 3.2 billion euros following a non-cash asset writedown in the EXPRESS Americas division. Revenue increased 4.9 percent to 63.5 billion euros in 2007.

Appel reiterated the Group’s financial target for 2008 of around 4.2 billion euros in underlying EBIT and confirmed the Board of Management will propose to raise the 2007 dividend by 20 percent to 90 euro cents. “Our focus remains on organic growth and improving cash generation and cash payout to shareholders,” Appel said.

Net income after minorities declined 28 percent to 1.4 billion euros in 2007, mainly due to the writedown on fixed assets in the EXPRESS Americas division in the fourth quarter. As a result, earnings per share were at 1.15 euros compared with 1.60 euros. In the fourth quarter, net income declined to 255 million euros from 649 million a year earlier.

Fourth-quarter earnings per share totaled 21 cents, down from 54 cents. Revenue increased by 3.9 percent in the quarter to 16.97 billion euros from 16.3 billion euros. Operating cash flow after changes in working capital was at 2.8 billion euros at the end of 2007 compared with 2.2 billion euros a year earlier, and free cash flow totaled 1.9 billion euros, up from 1.3 billion euros, helped by working capital improvements.

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Last post for junk mail? Steep fall in letters you love to hate

Posted by | Mar 6, 2008 | |

The modern curse of junk mail may be lifting, as figures revealed direct marketing has slumped to its lowest level this century.

According to the Royal Mail, there are now 800,000 fewer items being delivered annually than at the industry peak in 2003. However, the industry watchdog warned that while this might be welcomed by householders, it could be bad news for the postal service.

Figures from the Royal Mail still showed 4.65 billion items of direct mail dropping through doors last year – down 7.4 per cent year on year.

Trisha Dow, director of Postwatch Scotland, said the drop was “worrying” as it would cost the postal service – but the figure could be an aberration due to industrial action by Royal Mail workers last year. Postal workers went on strike over pay and conditions, leading to a major backlog of mail.

Ms Dow said: “We would say it’s worrying because it’s an element of the mail that helps balance the books. If that drops substantially – and we know there seems to be a growth in electronic marketing – then it’s difficult to say we would be glad of that.

“It’s not great news if it’s anything other than a blip. I would be interested to see if it’s a pattern.”

According to the advertising industry, the figures mean firms are getting better at targeting direct mail so that householders only get the type of offers in which they are interested. New methods of getting the message out – such as texts and e-mails – are also taking away some of the direct-mail business.

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Postal Service Feels Weight Of 'Junk Mail'

Posted by | Mar 6, 2008 | |

The souring economy and changing lifestyles are dramatically affecting the U.S. Postal Service. Troubled banks are mailing fewer credit card offers. Declining new-home sales mean vacant houses sitting with empty mailboxes. And as consumers switch to paying bills online, first-class mailings are drying up.

Montgomery proposed “do not mail” legislation late last year, making Maryland one of 18 states to consider such a registry since 2007.

Soon after she filed her bill, she said she was inundated by lobbyists who represent the Postal Service and direct marketing industry. “There was so much pressure against it,” she said. “It turns out the Postal Service is relying on a lot of this junk mail.”

Montgomery withdrew her bill but says she will reintroduce it after more research and a consultation with the state’s attorney general.

Potter talked about the Postal Service’s lobbying efforts against “do not mail.”

It seems unlikely that mail volume will return to previous levels once the economy improves, thanks to shifts in the way Americans are communicating and doing business, Potter said.

To solve its immediate headaches, the Postal Service will reduce labor costs by cutting overtime and using more seasonal workers, Potter said. The service also plans to raise the cost of stamps and premium services in May, taking advantage of major reforms passed by Congress last year that clear the way for annual rate increases. The cost of a first-class stamp will rise a penny, to 42 cents, and will increase every May thereafter, officials said.

Under the reforms passed by Congress, postage for letters can increase no higher than the rate of inflation, but fees for package delivery can be raised to compete with rates charged by FedEx and other private competitors.

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