Year: 2005

UPN boss joins rival

Andrew Sepencer left United Pallet Network, where he was managing director, on Friday to join rivals Pallet-Track as sales and marketing director. Spencer says: It was a personal decision to leave. I became stale and stagnant at UPN. I wanted to move forward and Pallet-Track presented me with an excellent way to achieve this. I cant wait to get involved.

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Swedish Scribona extends partnership with German Schenker, DHL

Swedish information management products provider Scribona AB has extended its partnership with German logistics provider Schenker AG and DHL, the express logistics subsidiary of German postal group Deutsche Post AG, it was reported on February 16, 2005. Through the collaboration, the logistics systems will be integrated and Scribona’s physical inventory management and transports will be taken over by DHL and Schenker. Scribona’s logistics personnel in Sweden will be offered employment at DHL by the summer of 2005. Within 18 months, all physical inventory management will be relocated to one of DHL’s logistics centres at the same time that the logistics systems are integrated. The motive behind the collaboration is to create a more flexible supply chain function, Magnus Johansson, head of Scribona’s Supply Chain Management unit, said.

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Comment on German postal services market from 2004 Annual Report

The German postal services market generated revenues in 2004 of more than €23 billion. Some two thirds of the market is open to competition. Just under two thirds of these revenues is accounted for by Deutsche Post AG (DPAG), with the remaining third being split among a number of providers, most notably courier, express and parcel service providers.

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Japan Post’s mail segment incurs 56.2 bil. yen midterm loss

Japan Post said Wednesday its mail delivery service posted a 56.2 billion yen net loss in the April-September period of fiscal 2004. Japan Post blamed the sector’s red ink on the growing number of people using e-mail instead of ordinary postal services. The public postal service entity was reporting its midterm results for the first time on a trial basis. Although it reduced personnel expenses, the shrinkage in the amount of conventional mail outweighed the effects of the cost cut, it said. When Japan Post closed its full-year books for the year to March 31, 2004, the mail segment returned to the black for the first time in two years.

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Number of parcels delivered by Japan Post breaks FY 1970 record

The number of parcels Japan Post delivered between last April and early this month has reached a record-high 184.97 million, breaking the previous record set in fiscal 1970, the public postal service agency said Wednesday. The previous record was set in the 12-month period beginning April 1, 1970, according to Japan Post. The new all-time high was logged partly because Japan Post teamed up last November with major convenience store chain operator Lawson Inc. to provide the “Yu-Pack” door-to-door parcel delivery service. The growth in Japan Post’s parcel service could draw flak from its archrival parcel service provider, Yamato Transport Co., industry analysts say.

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Delivering tough postal competition

Few markets are harder to open than postal services. Slowly but surely, e-mail, regulation, competition and market fragmentation are forcing national operators to rethink their models. Europe’s pace is about to quicken. Denmark will soon announce the winner of a 25 per cent stake in Post Danmark, with Dutch TPG and Germany’s Deutsche Post among contenders. Belgium wants a minority partner to modernise its service: TPG and France’s La Poste are rumoured to be considering bidding jointly. Cross-border consolidation so far has been held back by slow liberalisation and national sensitivity. Austria balked last year at partial privatisation for fear its service would land in German hands. Change has to come. Under EU pressure, the legally permissible monopoly on letters dropped from 350 to 100 grams in 2003 and falls to 50 next year. Markets are supposed to be open completely by 2009, though several may not be ready.

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UPS acquisition of Stolica reflects growing attractiveness of Polish parcel delivery market

United Parcel Service (UPS), the global delivery company, announced last week that it would acquire 100 percent in Poland’s Messenger Service Stolica for an undisclosed sum, in a move reflecting a growing attractiveness of the Polish parcel delivery market in the wake of EU enlargement.

The market of parcels of up to 35 kilograms delivered on the next day is estimated by the delivery companies themselves to have been worth some ZL600 million last year, with about 40 million parcels shipped. The largest player on that market last year was DHL Express Polska (created by the consolidation of Deutsche Post’s DHL and Servisco businesses) with estimated 25-percent share. Stolica was close behind with 22 percent, and Masterlink was third with 12-percent share. UPS had an estimated 5-percent share in the up to 35 kilograms next-day delivery parcels market in 2004, on par with TNT, Spedpol, and the Polish Post’s Pocztex. Szybka Paczka had 9 percent.

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New York Teamsters ratify first contract with DHL

In a huge step in the Teamsters campaign to bring union representation to workers at DHL, more than 300 recently organized members of Teamster Locals 851 and 295 ratified their first contract at the DHL gateway at JFK Airport in New York City. This is the first time that the Teamsters have represented a 24-hour, seven-day a week international plane hub at JFK airport. And it is the first of several DHL gateways in which the Teamsters Union have won an election to reach a first contract. “The contract negotiated by our Locals in New York City is historic, and shows the way to union representation for DHL employees across the country as the company expands its presence in the US market. We look forward to a positive relationship with DHL,” said Jim Hoffa, Teamsters General President.

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