Tag: Courier/Express/Parcels

UPS to build new Asia hub

Posted by | Sep 2, 2008 | |

The US express service provider United Parcel Service is investing USD 125 million in a new intercontinental airfreight hub in Shanghai (China). The approximately 100,000 sqm facility is scheduled to go into service in November. Over and above this, the CEP service provider wants to start construction work on a USD 180 million hub in Shenzhen (China) for intra Asian flights. This platform should be finished by 2010 and replace UPS’ existing facility in the Philippines. UPS anticipates that it will generate 40 pct of its sales in international traffic in 2010. At present the figure is 25–30 pct. UPS has also announced that it is acquiring a logistics company in China, but it is still remaining tight-lipped about the rumours concerning its supposed USD 20 billion offer for TNT, Europe’s second largest CEP service provider.

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US Teamsters seek independent FedEx board chairman

Posted by | Sep 2, 2008 | |

The U.S. Teamsters union said that it sent a letter to shareholders of package delivery company FedEx Corp urging them to support a union proposal to elect an independent board chairman.

FedEx’s annual shareholder meeting will be held September 29 in Memphis, Tennessee.

The Teamsters have been fighting for years to unionize drivers at FedEx unit FedEx Ground, arguing that the independent contractors the company uses should be classified as employees and entitled to benefits.

FedEx says the drivers are entrepreneurs and should not be classified as employees.

The Teamsters union represents drivers at FedEx’s main rival United Parcel Service Inc.

The company said the Teamsters’ proposal would not be beneficial to shareholders.

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FedEx Express to deliver broadest next-business-day service from Europe to the Eastern United States

Posted by | Sep 2, 2008 | |

FedEx Express has upgraded its next-business-day delivery service FedEx International Priority from Europe to major U.S. East Coast cities. Customers who had two-business-day service can now reach more than 3,500 zip codes in key markets along the U.S. East Coast overnight. Customers already enjoying next-business-day delivery service to this region benefit from later pick-up times of up to six hours.

To support the service upgrade, FedEx will launch a new westbound trans-Atlantic flight and fly a wide-body MD-11 freighter daily, Tuesday through Friday, between Paris, Charles de Gaulle Airport and Newark, N.J. The Europe-to-U.S. flight segment comprises part of the FedEx westbound ‘around-the-world’ flight, which enables FedEx to provide customers with access to key markets around the world with highly competitive transit times. The company will also introduce two new Airbus A310 flights, including flights originating from Barcelona and Budapest-Vienna, to offer customers in these areas later pick-up times for enhanced next-business-day service to the U.S.

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Integrators change course as clients go for ocean transport

Posted by | Sep 1, 2008 | |

This summer, FedEx opened two new gateways on the US West Coast for traffic entering its home market from Asia by ocean vessel. The integrator’s trade networks unit created gateway offices at the ports of Seattle and Oakland for traffic that moves in consolidations to the US and after breakdown is fed into the domestic FedEx network.

The focus on waterborne traffic is indicative not only of the weakness of the US economy and the impact of high oil prices on supply chain costs and strategies, it also shows a change in strategic thinking at FedEx.

Fred Smith said that FedEx was reviewing its strategy in order to position itself better to deal with an expected change in the way how its clientele was doing business. He outlined a new situation, where reliance on aircraft for shorter hauls is diminishing further. Increasingly, customers are cutting back on premium services.

The integrators remain bullish about their international express package business, particularly in Asia. FedEx and UPS are due to open their new Asian hubs in Guangzhou and Shanghai respectively this year.

Elsewhere in Asia, UPS bought out Korea Express’s share in their joint venture to assume full control of its express business in Korea.

According to some unconfirmed reports, FedEx is about to take a giant leap to boost its strength in the market, particularly on intra-European and Asia-Europe trade lanes. The integrator is allegedly seeking to acquire TNT. Both sides declined to comment on what they described as “speculation”.

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DX Group acquires the In-night and PX worldwide licensing operations of Business Direct (UK)

Posted by | Sep 1, 2008 | |

DX Group Ltd announced its acquisition of the trade and assets of the following operations from Business Direct Limited and Business Direct Group plc:

In-Night – a national infrastructure to provide secure parcel logistics, primarily supporting field based engineers, through:
– The Parcel Exchange (“PX”) – a nationwide “virtual depot” network of over 4,000 fully automated intelligent drop boxes
– In-Boot – collection and deliveries direct to a field engineer’s vehicle
– PUDO – Pick Up Drop Off, the collection and return of spare parts via manned third party locations

PX Worldwide Licensing – the licensing of the PX technology to interested parties.

For DX, the acquisition of these operations represents the opportunity to:
– become a leading player in the adjacent service management market
– develop the services available to In-Night customers from the integration of aspects of the these operations with existing DX operations
– use the secure PX network to extend the services we offer to existing DX Group customers
– market the PX concept internationally via licensing arrangements
– develop the emerging potential for extending the PX concept to service the rapidly expanding B2C market

Terms of the acquisition have not been disclosed.

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