Author: Archive

Hermes expands to Italy

Hermes Logistics Group has acquired a stake in Italian parcels and logistics company Swiss Post Porta a Porta, having taken over 30 pct of the share capital from majority shareholder Swiss Post International (SPI) to further expand its international presence and strengthen its position as Europe’s key logistics service provider in delivery to private households.

In return, SPI which does not wish to invest in domestic networks, is able to focus on the cross-border letter market, and will also become the preferred sales partner of HLG for international B2C services in European markets.

With a central hub in Milan and 63 depots throughout the country run by sub-contractors, one of Porta a Porta’s specialist areas is the nationwide distribution of items to both business and private customers. In 2006, the company delivered some 3.5 items to private customers, giving it a 7 pct share of the market. “No other private service provider in Italy has such a well-established B2C network as Porta a Porta,” says Jean-Pierre Streich Head of Swiss Post International.

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DHL Japan now guarantees time definite delivery service for parcels to the U.S.

DHL announced the expansion of its Time Definite Delivery (TDD) service to the United States to include parcels, offering customers in Japan an enhancement of its popular service that guarantees delivery of their important parcels to major U.S. business centers by noon the following business day.

DHL began offering guaranteed MidDay Express service for documents bound for New York, Los Angeles and San Francisco in April 2007, and with handling volume growing steadily, has decided to expand service coverage to include destinations in Boston and Chicago, as well for parcels with a declared value of up to US$2,000. Customers in Japan sending parcels to these U.S. cities now can opt for guaranteed delivery by noon the following business day for an additional 3,000 yen, on top of standard shipping rates.

Six months after the launch of TDD service for U.S.-bound documents, the U.S. currently ranks fifth in handling volume among the 40 countries served from Japan by DHL’s Time Definite Delivery service. DHL expects strong demand for the U.S.-bound MidDay Express parcel service, especially among Japanese manufacturers of semiconductors, electronic/automotive parts and machine tools.

Using TDD services is easy: customers simply contact DHL’s Customer Service and a DHL courier will be dispatched to collect shipments at designated locations for delivery the following business day . Customers can track their shipments via the DHL website, and are notified via telephone, e-mail or facsimile once the delivery has been made. If the delivery is not made by the agreed time, DHL will notify the customer and follow up with a report on the cause of the delay. If DHL is responsible for the delay, DHL will reimburse all shipping costs in accordance with the terms and conditions of its Money-back Guarantee.

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TNT Germany gets best brand award

TNT Express Germany has won the “best CEP services brand” award in the 2007 “Image Ranking” of the German logistics magazine “LOGISTIK Inside”.

TNT Express improved from fourth position in 2006 to the current number one, and its brand awareness increased from 97 pct to 99 pct within the last 12 months. A total of 14 CEP brands were evaluated in the ranking, TNT Express Germany said in a statement.

The ranking was based on telephone interviews with 300 logistics decision-makers in industry and trade all over Germany carried out by media research company TNS Emnid on behalf of LOGISTIK Inside.

The ranking provides detailed information about image, brand awareness, customer satisfaction, recommendations and trade size of 90 logistics brands. The survey has been carried out every year since 2002 and constitutes a competitive benchmark in the German transport and logistics sector.

The award was presented to Thomas Kraus, CEO of TNT Express Germany and TNT Innight Group, at last week’s German logistics congress in Berlin.

At the congress, Kraus also delivered a speech about value creation through “ stakeholder-focused brand management”, and highlighted how the company measures its brand management. Another highlight of the event was a presentation of the TNT depot at Berlin’s Tegel airport for congress participants.

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Velocity Express Announces Fourth Quarter and Year End Results

Velocity Express Corporation announced operating results for its fourth quarter and fiscal year ended June 30, 2007.
Highlights:
• Positive adjusted EBITDA in quarter ended June 30, 2007
• Gross margin improved while average driver settlement increased through route engineering
• USD 18 million in annualized new revenue started in September quarter of fiscal 2008, more than offsetting USD 15 million in lost revenue from terminated unfavorable contracts assumed with the CD&L acquisition
• Three new franchise agreements signed in September quarter of fiscal 2008
Finally, Velocity has launched a new franchise strategy to expand its technology-driven service capability into additional areas that enhance and increase service coverage. To date, Velocity has signed franchisees in Fargo, ND; Columbus, OH; St. Louis, MO and Kansas City, MO and expects to sign two more cities before the end of October. The Company expects these first 6 franchisees to provide more than USD 5 million of service for Velocity customers on an annual basis, from which Velocity will record the franchise fee income. Furthermore, Velocity expects to expand its franchise program into three or four additional geographies each quarter, equivalent to USD 15-20 million annual value of service for Velocity customers by June 2008. Beyond the benefit to customers, franchising also allows Velocity to use capital more efficiently by eliminating the expenditures needed to open new markets while earning franchise fees that assure “day one” profitability comparable to a mature direct operation.

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Blue Dart profit Rs. 7.7 million up by 33.27 pct

Blue Dart Express Limited, South Asia’s express courier and package distribution company, today declared its financial results for the 3rd Quarter ended September 30, 2007 at its Board Meeting held in Mumbai.

Income from operations for the 3rd quarter 2007 was Rs. 20.7 million, an increase of 17.44 pct over the corresponding quarter of the previous year, and cumulative profit for nine months was Rs. 7.7 million and increase of 33.27 pct over the corresponding period of the previous year.

Anil Khanna, Managing Director, Blue Dart Express Limited said, ” The results validate our customers’ trust in us and we continue to be the most reliable distribution service provider in the country. To further this trust, last quarter we expanded our business profile to fortify our unique capability to offer the entire spectrum of express distribution solutions. With the reinforcement of ‘Surfaceline’, we have now expanded our reach to over 17,500 locations across the country”.

Blue Dart, today, is firmly positioned as the unrivalled leader in the organised domestic air express space and has robust plans in place to sustain and augment its leadership position. Looking ahead Mr. Khanna said “We are adding 58 new warehouses which means 1 mn Sq ft of additional warehousing space, 596 new road-route connections, increase in workforce and enhancement of technology solutions. We also plan to strengthen our air infrastructure and would be adding a B757 in the last quarter. We stand committed to our role of a trade facilitator and would continue to enable growths for a greater India.”

1 USD = 39.7950 INR

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Suffering SMEs turn to alternate mail services

Small businesses have been hit hard by the postal strike and are now seeking out private alternatives to Royal Mail, a British Chambers of Commerce survey has revealed.

The snap poll, conducted over the weekend, found that 88pc reported the strikes had “a significant impact” on their business, with cash flow and loss of sales particular problems.

Of those affected, 55pc said they were now more likely to use private delivery companies.

The BCC said the figure reflected the anger felt by small businesses at the impact the postal strike.

The problem for small firms is that their options are limited by the fact that the Royal Mail’s biggest competitors, such as TNT, Business Post and DHL, are at the same time customers.

Only Royal Mail does the ‘final mile’ bit of deliveries meaning small firms, like the rest of the population, are in the words of one business owner, over a barrel.

Mr Frewin says the last 25 years has seen a consistent rise in the volume of mail. Over the last 18 months that figure has declined. “Is it a blip or a sign of long-term decline? Our concern is that what started with a one-day strike and now two-day strikes, will continue. The worry is that the postal industry will be brought to its knees.”

Talk is that TNT might be just the business to give Royal Mail a run for its money when it comes to ‘final mile’ delivery, but the discussion about another provider stepping in to compete isn’t new.

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Week to clear post backlog after strike

The postal strikes have left 120 million letters and parcels stranded in sorting offices, with the post watchdog warning that the backlog will take until next week to clear.

The news came as it emerged that more than of half of small firms want to stop using the Royal Mail after the strikes which have cost the London economy alone more than GBP 300 million.

Sources at the Royal Mail said there were one and a half days worth of post — 120 million letters and parcels — stuck in the system after last week’s five-day strike and unofficial stoppages.

This could take “several days” to clear, the source said.

However Postwatch, the industry watchdog, estimated the backlog at 200 million letters and parcels. This would take a week to clear, it said. Andy Frewin, a spokesman, said: “We would expect things to be back to normal next Monday if they work as normal this week.”

A survey by the British Chambers of Commerce found that 55 per cent of small firms are now more likely to use private delivery companies. Natalie Evans, the head of policy, said: “This result really hammers home the damage that this dispute has done to Royal Mail.

“Small businesses rely on a decent post service and have been let down badly over the past few weeks.”

The survey of more than 250 company directors showed that almost half thought the strikes had cost their firm at least GBP 1,000 each.

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Marshall Islands: Changes Coming to Postal Service

Postal Service operations in the Republic of the Marshall Islands (RMI) are being restructured and new equipment purchased to upgrade capabilities, according to RMI Chief Secretary Casten Nemra. Yesterday’s meeting of the Marshall Islands Chamber of Commerce featured a presentation by Nemra, who is also Chairman of the Board for the new RMI Postal Authority.

In August, Nemra and the Majuro Postmaster, Danny Note, attended a postal meeting in Palau, where it was announced postal services in the FSM and RMI would return to US domestic rates. “I expect to see a USPS circular published very soon that you can review. We’ve been informed that the change back to US ‘domestic rates’ will occur as early as the end of this November or at the latest by January 1, 2008.”

Opening the meeting, Chamber President Jack Niedenthal said the announcement of concessions was a great victory for the Chamber. Many in the Marshall Islands’ business community had been actively lobbying for these changes for several years.

The Chamber, which has been hosting various government agencies and reps in monthly forums throughout 2007, invited Secretary Nemra and Postal Service Officials to update the Chamber.

Speaking of changes being made by the new Postal Authority, Nemra said they were in the process of hiring a full time accountant and several mail carriers, as well as providing training for current executives and clerical workers.

At present, there are 50 employees, three of which are in Ebeye, with the remainder serving in the Uliga and Delap locations on Majuro.

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