Tag: Courier/Express/Parcels

UPS says its plan for DHL Express will save 40,000 jobs

Posted by | Sep 10, 2008 | |

United Parcel Service said its plan to take over U.S. air shipments for Plantation-based DHL Express will preserve competition and 40,000 U.S. jobs.

The House Judiciary Committee held a hearing in Washington on competition in the package-delivery industry. UPS and DHL are still negotiating an agreement, Wallace said. Malcolm Berkley, a UPS spokesman, said before the hearing there is no timetable for reaching a deal.

UPS is trying to blunt criticism from Ohio lawmakers and labor-union leaders that its plan with DHL will harm competition and cost jobs. UPS said May 28 it was working an agreement to take over shipments from two DHL vendors with a hub in Wilmington, Ohio.

Removing business from existing DHL vendors, Miami-based Astar Air Cargo and Ohio-based ABX, will cost 10,000 jobs, said John Prater, president of the Air Line Pilots Association, in testimony. Prater said his union represents 500 Astar pilots.

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DHL Express Global CEO testifies before House Committee on the judiciary

Posted by | Sep 9, 2008 | |

DHL Express Global CEO John Mullen testified before the House Committee on the Judiciary regarding the company’s potential contract with UPS for domestic air lift and related services. The proposed agreement with UPS is part of DHL Express’ U.S. restructuring aimed at enabling the company to remain a viable competitor in the U.S. market.

During the Hearing, Mullen stated that the pending deal with UPS does not violate antitrust laws and does not decrease competition in any way. He added that the contract is a pro-competitive vendor-services agreement for air and related services only. “DHL would retain complete control over every customer-facing aspect of the business and remain an independent and viable competitor in the U.S. air express delivery sector retaining full control over our ground operations, as we do today,” Mullen stated.

The potential execution of this pending agreement will affect DHL employees, as well as those of DHL’s current air service vendors, ABX Air and ASTAR Air Cargo at the Wilmington Air Park. DHL is sensitive to this situation and therefore has agreed to provide a generous USD 260 million severance, retention and other benefits, USD 225 million of this voluntarily, to impacted DHL, ABX and ASTAR employees.

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trans-o-flex to re-brand as trans-o-flex Logistics Group

Posted by | Sep 9, 2008 | |

trans-o-flex has unveiled its new group brand name as trans-o-flex Logistics Group to deliver on its strategy of international expansion in Europe.

The re-branding of trans-o-flex will be carried out step by step. The new logo and company name of trans-o-flex Logistics Group will be introduced to Germany as well as to the foreign subsidiaries like Belgium and the Netherlands. German-language logos such as “Schnell-Lieferdienst,” “Logistik-Service,” “Transport-Logistik” or “Linienverkehr” will no longer be used.

The express company will change all slogans and service descriptions into the English language in order to represent its internationality. The branding will be changed on letterheads, business cards, buildings, vehicles and driver uniforms as new supplies or modernisation become due.

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DPD expanding in Estonia

Posted by | Sep 9, 2008 | |

DPD is expanding capacity for its fast-growing business in the Baltic region with a new parcel sorting depot in Tartu, southern Estonia.

The new 1,500 sqm facility is four times bigger than the company’s previous depot and has increased its capacities to handle more than 3,000 parcels per hour. The new sorting terminal has 31 gates for couriers’ vehicles to handle loading and unloading of parcels.
According to DPD, the need for the new southern Estonian depot has come from the company’s fast growth. In the Baltic’s biggest and well-developed depot and delivery network DPD has more than 600 couriers and 30 depots. Investing in the expansion of parcel sorting depots supports the company’s strategy of aiming at the market leadership for next day deliveries and additional services in the Baltic region.

In 2007, DPD increased its import volume to the Baltic countries of Estonia, Latvia and Lithuania by 40 pct to around ten million parcels. In domestic shipping within the Baltic states, the three country organisations DPD Eesti, DPD Latvija and DPD Lietuva have a market share of as much as 46 pct.

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DHL seeking Asia expansion

Posted by | Sep 9, 2008 | |

DHL is keen to acquire local rivals or form joint ventures in an effort to double its domestic express business in Asia to tap growing demand for intra-country services.

Dan McHugh, Chief Executive of DHL Express Asia Pacific, said the group plans to lift the revenue contribution from its domestic arm to as much as 16 per cent of the overall total from 8 per cent now, within three to four years.

Demand for rapid delivery of documents and package services in Asia has long been about exporting goods to other countries, it has changed in recent years after a rise in domestic spending prompted a greater need for local services.

The market, however, is crowded and dominated by small local players, who often offer much cheaper services than their international rivals. Still, DHL and other global carriers including FedEx and UPS are eager to take part in the fast-expanding industry, which is ex­pected to grow more than 20 per cent in the next five years.

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