Tag: Courier/Express/Parcels

FedEx Express opens new station to process shipments within Mexico

Posted by | Oct 6, 2008 | |

FedEx Express announced the start of operations for FedEx Express Nacional, a domestic overnight service in Mexico, and the opening of the Toluca Hub Multiplex, its new center of operations for domestic shipments.
The service covers all 32 Mexican states with the support of two new centers of operations in Toluca (Multiplex) and San Luis Potosi, the latter to open in early 2009.
The express shipping market in Mexico is valued at USD 822 million and is projected to grow to USD 1.5 billion in the next 10 years, according to the Mexican Civil Parcel and Shipping Association.
FedEx begins domestic express operations today from the Toluca Hub Multiplex. The new facility has the capacity to process 6,000 shipments per hour with 48 new employees. FedEx expects the sorting capacity and the number of employees to increase during the next few years.
Toluca Hub Multiplex is the FedEx Express domestic service distribution center in Mexico’s Federal District metropolitan area and measures 3,780 square meters. It is located close to the two largest industrial parks in Toluca.

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DHL 'Mistakes' Make USD 3B Loss Unsustainable

Posted by | Oct 5, 2008 | |

Addressing the U.S. House of Representatives Committee on the Judiciary, DHL CEO John Mullen cited constraints on foreign investment in U.S. airlines as a reason for the express operator’s USD 3 billion losses since 2003.

Currently, U.S. law limits foreign ownership of American air carriers to a 49 pct equity interest and a 25 pct voting interest and with DHL losing USD 5 million a day Mullen said the situation had become “unsustainable.”

In an attempt to integrate the unusual structure of DHL – U.S. ownership of the domestic lift and foreign control of the international operations – Deutsche Post World Net (DPWN) acquired DHL International in 2002 and Airborne Express in 2003.

In order to comply with U.S. law, DHL was then required to divest itself of Airborne’s air operations (ABX), leaving DHL Express to operate ground operations only in the U.S.

So while it may have been one brand, the new DHL has remained several distinct components – including air capacity provided by ABX and ASTAR. Mullen acknowledges that the inability to control its U.S. capacity has resulted in a “substantial cost disadvantage” compared to FedEx and UPS.

In the five years since acquiring Airborne, DHL has invested USD 0.9 billion in its Wilmington, Ohio hub in order to integrate the ground operations of the former DHL and Airborne into a single air express provider.

So when UPS came calling with a more cost-effective solution to DHL’s domestic lift, Mullen and DPWN CEO Frank Appel decided to call “time” on the Wilmington hub operation and its capacity contracts with ABX and ASTAR.

However Mullen denied as “false” claims that DHL is abandoning its Wilmington Air Park facility after accepting more than USD 400 million in incentive benefits from the State of Ohio: “DHL was induced to consolidate operations at the Air Park, rather than in Northern Kentucky, in part by the offer of incentives that the State has valued in excess of $400 million.

DHL says it will provide more than USD 260 million in severance, retention, and health benefits for the workforce in Wilmington, including funding the severance and benefits programs of the ABX and ASTAR Employees.

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Parcel shipping: Domestic problems persist for DHL Express USA

Posted by | Oct 3, 2008 | |

DHL Express USA has terminated roughly 80-to-90 percent—or hundreds—of its domestic sales force staffers, LM has learned.

According to an industry source, DHL Express USA will retain somewhere between 80-to-150 U.S.-based sales staff that will now be referred to as “international” sales representatives.

The UPS-DHL contract was originally expected to be finalized by August; industry analysts are suggesting it may take at least another two months.

While market conditions remain challenging for DHL Express USA, the industry source said it is by no means certain that it will exit domestic ground operations.

But a research report by Robert W. Baird transportation analyst Jon A. Langenfeld said that, according to industry contacts, deteriorating conditions could force DHL to more drastically eliminate its U.S. domestic parcel operations.

And Morgan Stanley analyst William Greene wrote in a research note that due to anecdotal reports of extremely large volume declines at DHL it is becoming more difficult to see how DHL can deliver USD 1 billion in annual air revenue to UPS should the deal go through.

Greene wrote that prospects of this deal being consummated are becoming doubtful, adding that DHL’s customers appear to be leaving at a rapid pace, coupled with the fact that the House anti-trust and competitive issue-related hearings could also spike the deal.

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DHL reviews Same Day operations (UK)

Posted by | Oct 2, 2008 | |

DHL is “reviewing its Same Day operations with a view to repositioning the business in accordance with market requirements”.

A DHL spokeswoman says: “Changes pertain to the strategic direction and deployment of the Same Day sales force, in an effort to establish closer links with customers.”

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CPL – Daimler switches from international express to deferred deliveries

Posted by | Oct 2, 2008 | |

Daimler aims to switch more of its international express shipments to deferred products to save on cost while ensuring reliable transit times.

Over the last two years, Daimler has centralised its CEP planning and procurement in the Stuttgart head office. Previously this was handled at local level, resulting in deviance from global standards and agreements, and a lack of transparency, Pomberger explained.

In order to offer CEP shipping across the entire group of brands and subsidiaries, Daimler has created its own intranet tool under the name of “CEPRIS”, integrating all agreements and negotiated rates with the four integrators for delivery of documents and parcels up to 70kg. This also provides one single database for reporting purposes. “CEPRIS is a key success factor,” Pomberger emphasised.

At the same time, the automotive group has defined its international CEP requirements into four service levels: economy, offering reliable transportation; next-day express by 09:00 and 12:00; and special services/urgent deliveries, he said.

For the first three service levels, Daimler works with all four integrators, “trying to use their regional strengths around the world”, Pomberger said. The company is looking into adding another service provider, he added. “I’m sure we will add one or more company to our portfolio in future,” he said. For urgent shipments, Daimler uses DHL, time:matters, TNT and World Courier.

Daimler is now actively trying to steer more of its CEP traffic flows from express to economy delivery, Pomberger said. “We need greater flexibility and economical alternatives for less urgent shipments,” he declared. “(Our) demand for economy services is growing.” The company was under “ enormous cost pressure” and needed “competitive” rate levels, he noted.

In addition, the automotive group needed its CEP providers to ensure reliable transit times, high quality reports and service offers focused on Daimler’s needs. “CEP firms often offer products and services that do not fit our needs,” he criticised. “I do not always have the feeling that the integrators listen to our needs.” But he stressed that overall Daimler had “good service levels” around the world from its providers.

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