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FedEx unveils new Canadian headquarters, service center

FedEx Freight Canada, unveiled on Thursday its Canadian headquarters as part of an aggressive growth plan.

FedEx Freight Canada also officially unveiled a 48-dock Toronto service center.

“This new facility establishes a strong base from which FedEx Freight Canada will quickly expand its operations across the country,” FedEx Freight Canada vice president and general manager Grant Crawford said in a statement. “From British Columbia to Nova Scotia, we offer (less-than-truckload) customers the service excellence and reliability they’ve come to expect from the FedEx brand.”

FedEx Freight Canada began operations in February offering less-than-truckload and cargo services both within Canada and across the U.S. border.

The subsidiary of the Memphis-based shipping and package service was created from an acquisition last year of Watkins Motor Lines and Watkins Canada Express.

FedEx Freight Canada already operates pickup and delivery services in Vancouver, Winnipeg, Calgary, Montreal and London, Ontario, with plans to add service centers in Ottawa, Cambridge, Edmonton, Halifax and Quebec City.

FedEx Freight Canada also plans to expand facilities in Winnipeg and Calgary.

The corporation already operated a Canadian small package delivery service not related with its freight division.

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Deutsche Post rumored to buy Sinotrans joint venture

Reports from the Xinhua news agency suggest that Deutsche Post World Net is moving to buy out Sinotrans from its Exel-Sinotrans Freight Forwarding joint venture. The reports cite the CEO of Sinotrans indicating in April that he would be interested in selling the Chinese logistics company’s stake in the joint venture.

The reports also quote the president of DHL China and South Korea as saying that the DHL is in negotiations with Sinotrans about the holding, but that a deal has not been reached.

DPWN already owns 50% of the business which has revenues of more than €300m.

Exel-Sinotrans was established before DPWN bought Exel. Although it is described as a freight forwarder, it aims to offer a complete suite of logistics services including contract logistics. It focus is orientated towards southern China and serving traffic between Hong Kong and the Pearl River Delta.

Sinotrans is at present engaged in complex manoeuvres to restructure its capital base and to re-align its corporate strategy. It is moving much of its assets into companies quoted on the Hong Kong stock exchange in order to raise capital and be less reliant on loans from state banks.

DHL has announced a string of investments in China both for its logistics business and its Express operations. It now has wholly owned Express operations, but its logistics businesses are a mixture of wholly owned companies and joint-ventures. Of the latter its Danzas-ZF Freight forwarder is probably the most important.

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First group extends Royal Mail contract to move mail by rail until 2010

FirstGroup-owned rail freight company FirstGBRf said it has extended its contract with Royal Mail to transport post until 2010.

The deal will see the freight haulier move more than 1 million items a day on two return services between Willesden in London, Warrington and Wishaw in Scotland.

FirstGBRf started carrying post for Royal Mail at the end of 2004, marking a return to the railways for the postal service following the end of its contract with previous postal train operator English, Welsh & Scottish Railway due to a disagreement over costs.

FirstGBRf did not disclose the value of the contract.

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Jupiter research forecasts that off-line retail sales influenced by online research will reach one trillion dollars by 2011

US Online Retail Sales Will Grow By 16 Percent in 2007 But, As The Channel Matures, Growth Will Slow To Single Digits By 2010

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, forecasts that off-line retail sales influenced by consumers’ online browsing and research will increase by a compounded annual growth rate (CAGR) of 12 percent over the next five years. Detailed in a new report, “US Online Retail Forecast, 2006 – 2011,” the healthy growth of off-line-influenced sales will reach 40 percent of total US retail sales by 2011.

“Online retail sales are maturing and the lion’s share of future growth will primarily come from existing buyers spending more in the online channel,” said Patti Freeman Evans, JupiterResearch Senior Analyst and lead author of the report. “Assuming growth continues in a similar trajectory over the coming decades, US online retail sales will plateau at 10 percent to 15 percent of total US retail sales, barring a dramatic change in the online shopping experience that promotes an inordinate spending shift among buyers.”

US online retail sales will grow by 16 percent in 2007 to reach USD 116 billion. Over the next five years US online retail will grow at a CAGR of 11 percent reaching USD 171 billion in 2011. Despite the slowing of growth in online buying, web influenced off-line sales will grow at a slightly faster pace over the next five years, reinforcing the vast advertising and marketing value retailer websites present.

“With market maturation comes opportunity for the retailers that can harness the power of the Internet to influence off-line sales,” said David Schatsky, President of JupiterKagan. “The key for retailers is to create clear, simple and convenient links to the off-line channels that persuade shoppers to stay with them as they cross channels.”

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Pakistan post office: plans for modernizing

The Pakistan post office is planning to introduce a new express service having an internet-based track and trace facility, allowing people to check the status of their posted articles through a website.

It is also introducing a new service in Karachi, offering people to deposit their utility bills through postmen as against nominal charges. It would be extended to other major cities in the country afterwards.

Punjab Postmaster General Mohammad Ahmed Mian said the track and trace facility would be new in the country and give the postal service an edge over the private couriers. The rates of the express postal service would be lower than being charged by private companies, he said.

According to him, the decision to synchronize the public sector postal service with the modern corporate requirements was taken at the federal level, and the concept was launched by the federal communication minister on June 7.

The postal service was offering its urgent mail service at 36 locations which would be increased to 80 under the new plan. The existing service was not giving the desired results due to some major loopholes that would be removed now, he said.

The department would go for marketing, create private sector like working conditions at the centres to attract clientele, recruit computer literate staff with some incentives, and extensively use air service for transmission of post rather than overwhelming dependence on the railway department which had its own problems.

When asked about the bill collection facility, he said people intending to avail it needed to just telephone at the postal office’s universal access number (UAN). In response postmen would collect the bills along with bank checks for payment as against a fee of PKR 20 per bill (0.16 pence).

The fee was nominal and the facility would save people of Karachi from the hassle of paying bills personally in banks or post offices, Mr. Ahmed Mian said, clarifying the facility was only for Sui gas and PTCL bills.

According to him, the department had upgraded its major centres in the country. In Lahore these had been upgraded in nine locations in addition to the General Post Office, improving not only the buildings but also deputing efficient staff there.

Ahmed Mian did not agree that people had stopped posting letters in view of the availability of internet and mobile telephone services. The post office was still collecting its 40 per cent revenue from letters which were sent to even Siachin.

“We are subsidising the mail service merely because we take it as a national duty. Half of our centres are incurring losses but we are not closing them only for providing a vast postal network to people,” he said.

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German govt mulls extending Deutsche Post VAT exemption to competitors

The German government is considering extending Deutsche Post World Net AG’s exemption from VAT to all letter carriers in the country, as part of its plans to end the company’s monopoly on the market, Frankfurter Allgemeine Zeitung reported, citing government sources.

The move will increase the amount of tax revenue the government is losing from its current level, which is an estimated 300-500 mln eur a year, it said.

Deutsche Post is scheduled to lose its mail delivery monopoly for letters weighing up to 50 grams at the end of this year, with the EU seeking a continent-wide liberalization of the market in 2009.

The exemption from VAT will include all mailings up to 1,000 grams, the newspaper said today.

The government also hopes the exemption will help keep prices low after Deutsche Post’s monopoly expires, it said.

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Pitney Bowes Mailstream Solutions Receive USPS® MASS™ Certification

Pitney Bowes today announced that its Multi-Line Optical Character Reader (MLOCR) letter sorter product line has received U.S. Postal Service® MASS™ (Multi-Line Accuracy Support System) vendor certification for the upcoming Cycle L Requirements, scheduled for implementation on August 1, 2007.

Each year, MLOCR sorting equipment, along with mail sorting operations, must achieve MASS™ certification in order to continue to sort mail and achieve workshare postage discounts from the USPS. This year the equipment certification process was particularly challenging due to the new and more stringent requirements from the USPS designed to curtail Undeliverable As Address (UAA) mail.

The current MASS™ certification requires sorters to perform DPV™ (Delivery Point Validation) and LACSLink™ (Locatable Address Correction Service) processing which dramatically increases the processing requirements on mail sorting equipment. The sorter is designed to capture the image of the mailing address, perform a database lookup and validation and then print a barcode at processing speeds of up to 36,000 mail pieces per hour.

Pitney Bowes has worked closely with the USPS for 87 years. Their engineers and software developers are charged with optimizing mailstream operations for clients by developing best-of-breed hardware and software solutions that consistently earn USPS® certification.

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Poste Italiane's long-term issuer credit rating upgraded to 'A'

Standard & Poor’s Ratings Services said it has raised its long-term issuer credit rating on Italian Poste Italiane Group (Poste) to ‘A’ from ‘A-‘, reflecting Poste’s increasing orientation toward commercial activities.

The ratings agency also affirmed its ‘A-1′ short-term issuer credit rating on Poste, and added the outlook is stable.

The ratings reflect Poste’s strong state backing due to the group’s social importance and its economic role in the domestic market, the state’s grandfathering of almost all Poste’s financial debt, and Poste’s gradually improving stand-alone creditworthiness,’ S&P credit analyst Myriam Fernandez de Heredia said.

S&P said the ratings remain burdened, however, by Poste’s financial profile, and by uncertainties around the envisaged market liberalisation, which may result in a more competitive environment.

It added a weakening of the state’s support, along with a deterioration of the group’s financial profile, could put the ratings under pressure, but this is unlikely in the next 2-3 years.

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