Tag: Courier/Express/Parcels

UPS plots bid for TNT

Posted by | Aug 9, 2008 | |

United Parcel Service (UPS) is plotting a EUR 10bn (GB 7.8bn) bid for Dutch rival TNT, a move that could herald the long-awaited consolidation in the global express-delivery business.

UPS has made an informal approach to TNT, its European rival and one of Royal Mail’s biggest competitors in Britain. Despite initial reluctance from TNT, early-stage talks about a potential tie-up have been held in recent days, The Sunday Telegraph has learned.

Soaring fuel costs have hit global courier businesses hard. The share prices of the main firms – UPS and FedEx in American and TNT and DHL in Europe – have suffered in recent months, making consolidation both cheaper and compelling.

UPS, which has a market value of USD 66.24bn and dominates the American delivery market with rival FedEx, has appointed investment bank Morgan Stanley as adviser.

The American company has also brought in strategy consultants AT Kearney to carry out a detailed report on a potential deal with TNT.

Insiders said that AT Kearney has now finished its report and delivered to Morgan Stanley, whose bankers are now spearheading discussions with TNT.

Both UPS and FedEx have eyed TNT’s parcel business for several years but are said to have been put off bidding for the firm because of its slower-growing postal division.

Sources said that UPS’ plans to buy TNT could include selling its postal division, possibly to a private equity buyer. It may instead decide to team up with a buyout firm. It is thought CVC, the European buyout giant, could be interested because it already owns stakes in Belgium postal operator De Post-La Post and Post Danmark, a Danish postal company.

A deal with TNT would deliver to UPS substantial cost savings as well as a vast European reach – something it has been trying to slowly build up in recent years. The company recently forged closer ties to TNT’s main rival, DHL, through its agreement to ferry the Deutsche Post unit’s packages between North American cities.

Read More

Aramex Introduces Biodegradable Packages

Posted by | Aug 8, 2008 | |

Aramex has successfully introduced eco-friendly courier bags across its global network.

The major initiative, which began at the start of the year, involved phasing out all plastic bags for its express courier dispatches, replacing them with new eco-friendly, bio-degradable pouches.

Supporting the use of alternative resources, the switch demonstrates Aramex’s commitment to reduce the use of plastic in its operations as part of a wider pledge towards environmentally sustainable business practices.

It is estimated that polythene, the most common type of plastic, takes more than 100 years to break down, until which time it persists in landfill sites and pollutes the environmental landscape.

Made from recycled polythene, the new pouches include a special additive in the material which reduces the molecular weight of the polythene, accelerating the disintegration process without affecting the packages’ durability.

Encouraging recycling of all forms, Aramex also introduced an internal paper recycling project and recently launched a newspaper recycling project through Ruwwad, the company’s sustainable community development initiative.

Read More

Brown urges McCain to use clout to save Wilmington jobs

Posted by | Aug 7, 2008 | |

U.S. Sen. Sherrod Brown, D-Ohio, urged Republican presidential candidate John McCain to press DHL and its German owner, Deutsche Post, to preserve jobs that could be lost if DHL hires United Parcel Service for its U.S. cargo airlift work.

McCain, the Arizona senator, scheduled a campaign stop in Wilmington today (Aug. 7), to meet privately with community activists trying to save at least 8,000 jobs at DHL’s Wilmington air freight hub. McCain was also to visit Lima.

The Plain Dealer of Cleveland reported on Wednesday that Washington lobbyist Rick Davis, now McCain’s top campaign adviser, made hundreds of thousands of dollars in fees lobbying Congress to allow the 2003 deal in which Deutsche Post bought Airborne Express to form DHL’s U.S. business. The Washington Post had a similar report in June.

Brown, noting the Cleveland news report, publicly urged McCain on Wednesday to send Davis to Germany so that Davis could use his contacts to lobby for preserving the Wilmington jobs.

In 2003, some in Congress had expressed concern about foreign ownership of a U.S. cargo transport company, before the DHL purchase of Airborne Express was allowed.

Joseph Teuchert, a Wilmington-based pilot for ASTAR Air Cargo that is a contract delivery carrier for DHL in the United States, said he expects to be in the meeting Thursday with McCain.

Wilmington Mayor David Raizk said he and others trying to preserve the Wilmington jobs met privately with Obama just before the Illinois senator’s public appearance July 11 at Stivers School for the Arts in Dayton.

McCain campaigned Wednesday in Jackson, Ohio. He and Democratic opponent Barack Obama have been campaigning across Ohio and Michigan in recent weeks.

Read More

DHL offers clients discounts on bulk cargo

Posted by | Aug 7, 2008 | |

Under the new pricing regime, any shipments weighing more than 51 kilogrammes will enjoy a tariff discount of between 35 and 45 per cent if they are headed to some select 27 destinations.

Consignments from the destinations are also covered by the promotion, which runs until December.

Lawrence Yumbya, the National Sales Manager at DHL said the offer was meant to drive up shipment volumes while easing the burden on customers at this time when the global economy is feeling the heat from high oil prices and turbulence from America’s sub-prime mortgage crisis.

The promotion covers Botswana, DR Congo, Ethiopia, Nigeria, Rwanda, South Africa, and the Sudan. Others are Tanzania, Belgium, Denmark, France, Germany, Italy, the Netherlands, Sweden and Switzerland. The United Kingdom, USA, Australia, China, Hong Kong, India, Israel, Japan, Singapore, Taiwan and United Arab Emirates are also on the list.

The good news comes three months after DHL unveiled a USD 474 million shipment hub in Europe to improve on its deliveries.

The facility, which is located at the Leipzig-Halle airport in Germany, is expected to reduce DHL’s shipment running time to half, translating into faster deliveries across the globe.

It has the capacity to handle about 60 aircraft per day and to process about 1,500 tonnes of freight.

Read More

Slow growth for Spanish express carrier MRW

Posted by | Aug 7, 2008 | |

Spanish domestic express carrier MRW saw volume growth slow to just 1 pct in the first half of this year due to the country’s weakening economy but is continuing to invest in network expansion.

MRW increased its shipment volumes by 1.06 pct for the first half of 2008 and expects to maintain this growth rate until the end of this year, the news agency Europa Press reported. Owned 100 pct by Spanish shareholders, the company pointed out that it was able to achieve positive results in spite of the economic crisis.

Its “semi-urgent” service for next-day deliveries by 13:00 and its pets transportation service had shown the most growth, it noted.

In addition, MRW opened two new franchises in Madrid and Malaga to expand its regional network in the country. In the first half-year it added 13 new sales outlets, and now counts 813 branches in Spain, Gibraltar, Andorra and Portugal.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest