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Overnite's transformation to UPS Freight is complete

Overnite Corp., the Richmond-based trucking company, was acquired last year for USD1.25 billion by United Parcel Service Inc.

The company formerly known as Overnite has undergone a complete makeover, including an appreciable increase in employees.

Ranked as the area’s 17th largest private employer last year, UPS added 266 employees, many of them on the trucking side of the business.

UPS Freight is the fourth largest carrier in the sector of the trucking market known as less-than-truckload, which typically uses trucks to carry multiple loads to various customers.

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DHL USA wins 'Vendor of the Year' award from Technicolor Cinema Distribution

DHL announced that Technicolor Cinema Distribution, one of the nation’s leading distributors of theatrical film prints, honored DHL with the Technicolor ‘Vendor of the Year’ award. At an awards ceremony, Technicolor recognized DHL’s nationwide US service excellence, and praised the contributions of DHL employees to the DHL/Technicolor partnership.

‘Vendor of the Year’
This is the third straight year in a row that Technicolor has presented DHL with the ‘Vendor of the Year’ award for its Same Day service. This year, DHL was recognized for achieving higher levels of service performance in 2006 than in any other year in the history of the partnership. The DHL team was also commended for exceeding goals and setting a new quality benchmark.

DHL Express manages the regular distribution of time critical film prints and marketing materials to theaters nationwide on behalf of Technicolor. DHL provides same-day delivery for time-sensitive domestic and international packages via ground transportation and next-flight-out service, as well as chartered aircraft services. When special circumstances require even more rapid delivery than next day, DHL Same Day service is engaged via an electronic link to provide expedited service on-demand. DHL Same Day also distributes film prints between theaters for Technicolor, expedites film shipments for special screenings, provides field warehousing in more than 30 cities around the country, and stores extra prints for Technicolor’s film distribution needs.

Technicolor measures DHL’s performance on the most stringent benchmarks in the transportation industry to prevent disruptions that could inevitably lead studios or theaters to delay or cancel movies to awaiting audiences. DHL service performance for combined express and same day deliveries for Technicolor Cinema Distribution was over 99% error-free for 2006.

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FedEx honoured by General Motors as a 2006 Supplier of the Year

FedEx Global Supply Chain Services, company that provides supply-chain management solutions, was presented the General Motors 2006 Supplier of the Year award for its overall business performance in providing GM with world-class logistics services.

The 15th annual award — themed the “Best of the Best” — was given during ceremonies Saturday, March 31 in Orlando, Fla. FedEx Global Supply Chain Services, the first logistics provider to receive the GM Supplier of the Year award in 1998, is now the only logistics company to earn the honor for nine consecutive years.

Since 1995, FedEx Global Supply Chain Services has managed the inbound transportation for more than 1,125 suppliers into 27 GM powertrain, engine, transmission and component plants, primarily in North America.

The GM Supplier of the Year award began as a global program in 1992. Winners are selected by a global team of executives from purchasing, engineering, manufacturing and logistics who base their decisions on supplier performance in quality, service, technology and price. This year, General Motors honored 89 suppliers for their outstanding performance throughout 2006.

FedEx Global Supply Chain Services provides critical inventory logistics, transportation management, fulfillment and fleet services to improve the supply-chain performance of its customers and offers customers process discipline through flexible and scalable solutions.

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Postcomm to examine Royal Mail request to price bulk mail products by delivery zone

Royal Mail applies to charge higher prices for delivery to London and rural destinations; lower prices elsewhere

Postcomm, the independent regulator for postal services, has today written to customers and operators about an application by Royal Mail to charge large mailers – using products which are not part of the Universal Service – different prices depending on where in the UK their mail is delivered. Royal Mail calls this ‘zonal pricing’. Postcomm has up to nine months to assess whether, and if so when, this new pricing structure can be implemented.

Royal Mail’s ‘zonal pricing’ application does not affect stamp prices or those bulk mail products that are included within the definition of the universal service. It covers products that generated about 25 per cent or GBP 1.4 billion of Royal Mail’s total regulated revenue in the last financial year.

Royal Mail currently prices almost all its bulk mail products at geographically uniform prices. It says that introducing ‘zonal’ prices would help align prices more closely with its costs. In its application to Postcomm, Royal Mail has divided its 27 million delivery points around the UK into five zones. These are Greater London, other areas of high population and delivery point density, areas of moderate density and rural areas of low population and delivery point density.

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TNT starts bio fuel pilot in India – a “Driving Clean” initiative to reduce carbon emissions

TNT launched a pilot project in India to use bio fuel for its delivery vehicles. The initial phase will see specially trained drivers run three bio fuel trucks between Pune, Nasik and Bangalore, covering a total of 45,000 kilometres per month. Routes and driving times are optimized to further reduce carbon emissions. If the project proves efficient, TNT intends to expand it within its Indian fleet of vehicles.

The Indian government already promotes bio fuel trains for transporting passengers and freight. Close to 44 million hectares – equivalent to two-thirds of the Netherlands’ area – of degraded forest land are currently used in India for growing the vegetation needed for alternative fuel. Local farmers will benefit from growing bio fuel crops, which can be a new source of revenues and jobs.

TNT’s bio fuel pilot project in India is part of the company’s global “Driving Clean” initiative to improve its environmental performance. TNT is already using alternative fuels and technologies in a variety of pilot projects in the Netherlands, the UK, Germany and Australia.

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Royal Mail soars to victory in Courier Challenge 2006

Royal Mail topped the courier league for consistently delivering packages on time and at low cost, in a new ranking by Research International.

Rival courier services fell short against Royal Mail’s performance for its Special Delivery 9am and lunchtime guaranteed delivery services.

Early morning service costs averaged GBP 9.46 with Royal Mail, more than GBP 30 cheaper than competitor, TNT, at GBP 40.57. TNT came last for the morning service, leaving them trailing behind other couriers tested.

Royal Mail’s Special Delivery service was also cheapest among rivals for guaranteed next day delivery by lunchtime averaging at GBP 5.05, nearly GBP 23 less than its highest priced competitor.

The results illustrate Royal Mail’s winning combination in performance on promise at the lowest cost compared with its competitors. The five main national couriers were included in the independent study: Business Post, DHL, City Link, Royal Mail and TNT. A total of 2,479 test items were sent.

Test routes were selected to provide consistent transit times, as accepted by EU, Postcomm, DTI, IPC and Royal Mail.

Test items were prepared centrally for consistency too and reflected the most common business items sent by package type, size and weight. Items could not be identified as test items by the courier as senders placed items in each couriers own packaging.

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First stone laid at DPD Masterlinks new hub in Gdansk

With the symbolic act of signing the foundation document by Rafal Nawloka – DPD Masterlink President, Robert Karczewski – REX-BUD President the general contractor and Leszek Grombala – local mayor, the construction of the new depot officially started. Opening of the hub is scheduled for September 2007.

The depot is going to be built in two phases. The first one involves building the surface area of 2946 square meters, 55 gates and 11 reloading ramps. The second phase will be completed, when the operational surface of the first phase will prove to be insufficient.

Currently, 120 people are employed in the Gdansk depot. However the company plans to increase staff, ultimately to reach the number of 150 couriers and 50 workers.

The companys dynamic growth triggers the need for investments. The constant increase in the amount of parcels, annually reaching 40 percent, requires the modernization of existing and creation of new infrastructure in whole of the country.

Rafal Nawloka, DPD Masterlink President said: By establishing a new hub in Gdansk the company implements its new operations strategy, which focuses on the creation of a couple sorting centers in Poland. The benefits, in opposition to a centralized operational model, concern higher effectiveness and security of operations. Hubs will be located in Gdansk, Warsaw, Poznan, Katowice and Lodz.

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Postwatch concerned about zonal pricing: who wins?

The postal regulator Postcomm has today started to consult on Royal Mail’s application to price its bulk mail products differently according to where they are delivered. The Royal Mail wants to divide the UK into 4 zones according to the density of delivery points and in addition London where it claims costs are higher.

Postwatch, the watchdog for postal services, will be studying the proposals carefully before responding on behalf of customers. Clearly the implications of introducing zonal pricing need to be fully worked through and fully understood before being allowed.

Postwatch is concerned that there is a real risk bulk mailers will curtail mailing to rural areas and all or parts of London because those areas will attract a surcharge. Not only could this be detrimental to customers and businesses in those areas but it could also have an irreversible effect on volumes. This is at a time when Royal Mail itself is constantly expressing concerns about the decline in the amount of mail it is delivering.

Millie Banerjee, Chair of Postwatch, said: “We are concerned that this second attempt to persuade the regulator to allow the introduction of zonal pricing will be successful. It may pass the test of allowing specific product prices to be more closely aligned to their costs. But it may also result in an unfortunate lose – lose situation, where customers, competing postal operators and Royal Mail itself are all worse off.

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