Tag: Asia

Rivals fret as China Post unveils fast delivery bid

Foreign express freight operators on the mainland have voiced fair-play concerns over a new service launched by China Post to try to regain lost market share. China Post lost its monopoly under World Trade Organisation competition rules which allowed foreign companies access to the mainland market two years ago. China Post’s share of the burgeoning express delivery market has slumped from 97 per cent to under 40 per cent in the face of competition from DHL, FedEx, UPS and TNT. Now China Post is fighting back with a new all-night freight service between 136 cities in 27 provinces.

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Japan Post eyes global deliveries: Corporation starting up Singapore service ahead of privatization in 2007

Traditionally focused on the domestic market where it enjoys a monopoly on mail services, Japan Post is turning its attention to overseas businesses, preparing to expand in the global market. It aims to become a major player in the world transport business after it is privatized in 2007.

The corporation plans to start by the end of this month its first international transport business, in partnership with Sankyu Inc., a major transport company. The service will be located in Singapore and import/deliver personal computer peripherals to consumers in Japan.

In another overseas initiative, Japan Post President Masaharu Ikuta met in June with Liu Andong, director of China’s Postal Bureau, in Beijing, to propose that Japan and China cooperate in a mail service to increase the postal business between the two countries.

The two stopped short of signing an agreement, due partly to hesitation on the Chinese side. But Ikuta’s visit paved the way for deepening relations between the postal authorities in the two countries, sources said.

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DHL Danzas to expand Indonesian market

DHL Danzas Air and Ocean (DHL Danzas), the global freight provider and logistics arm of DHL, plans to set up more facilities in Indonesia by the end of the year to gain from the nation’s improving economy and increased trade within Southeast Asia. “Indonesia is a very interesting market. We would like to take full advantage of the Indonesian market,” DHL Danzas Asia Pacific Chief Executive Officer Peter Lansiedel told The Jakarta Post and Bisnis Indonesia on Monday. DHL Danzas’ core business is in freight and container shipments above 250 kilograms. Along with DHL Worldwide Express, DHL Danzas is part of the DHL group, which is now fully owned by Deutsche Post World Net. Lansiedel said the company planned to open four new offices and logistics centers for air and ocean freight by the end of this year, but he declined to provide details on the location and estimated investment for the new facilities, DHL Danzas claims to have invested USD2.1 million in Indonesia over the past four years.

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DHL beats hub forecast by four years

DHL Express will open its USD100-million dedicated central Asia hub in Hong Kong this week and it is already clear the terminal’s handling capacity will have to be expanded ahead of schedule.

Chief executive (Asia Pacific) John Mullen said a daily volume target DHL set for 2008 was achieved last week before the facility had even officially opened.

“It doesn’t mean we’ll run out of capacity overnight. But it does indicate our volume projections [made three years ago] were highly conservative,” Mr Mullen said. “We will have to substantially upgrade the hub’s capacity before the original deadline. It will be much, much sooner than that.”

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Courier services look to China to expand coverage

Companies in the U.S. are facing mature markets at home and are increasingly looking to the Chinese market to grow and remain competitive globally. According to FedEX, U.S. exports to China have grown by 75 percent over the past three years making the United States second only to Japan as China’s top trading partner. And European exports to China are also growing steadily.

DHL was the first international air express company to enter China in 1980, followed by FedEX in 1984, and UPS in 2000.

DHL’s partner Sinotrans is a licensed customs broker, covering 300 cities through 11 major gateways with about 37 percent of China’s market. In 2003, they invested USD200 million in China for a five-year program.

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