Tag: Courier/Express/Parcels

TNT on course for growth

Posted by | Jul 4, 2008 | |

TNT says it is well-placed to ride out the effects of any global economic downturn thanks to minimal exposure to the US domestic market.

Last week, rival FedEx reported a fourth-quarter net loss of USD 241m (GBP 121m) and full-year net income of USD 1.13bn (GBP 568.3m), down some 44 pct on the previous year, mainly caused by the weak US economy.

And fellow US-based operator UPShas already warned of falling domestic demand.

However, Marie-Christine Lombard, group MD for TNT’s Express division, says: “We are not affected by the US slowdown – we have no exposure in the US, in some ways to our great regret and in others not.”

In a reference to DHL, which has recently announced large-scale cutbacks in its US operation, she adds: “[DHL] has paid for it – and now you see what the result is. When you have very strong operators in very mature markets it is very hard to enter the market late.”

Despite the sell-off of its logistics arm in 2006, TNT is still targeting growth in the plus-30kg consignment sector, such as pallets and other oversized express freight, says Lombard.

“What we have found is that clients trading on express flows have other flows that they would like to use TNT for. We want to capture those and arrange solutions for our clients.”

Marketing and Sales Director Jan-Willem Breen says that a broad product offering, particularly what it describes as “Economy Express”, is also helping the firm to survive the downward economic pressure by allowing its customers to switch traffic to cheaper ground-based options.

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TNT starts the only scheduled road services between China and Southeast Asia

Posted by | Jul 4, 2008 | |

TNT announced the start of the only scheduled road services between China and five countries of Southeast Asia, using its Asia Road Network. From China, international road services to Southeast Asia will first be available from the South of the country. In a second step, TNT will link the Asia Road Network to its Chinese domestic network to offer customers seamless road connections from many parts of China to Southeast Asia.
The Asia Road Network connects to TNT’s international express network at Nanning, the capital of the Guangxi Zhuang Autonomous Region, and Guangzhou, the capital of Guangdong Province.
Introduced at the end of 2005, TNT’s Asia Road Network is a fast, reliable, and secure integrated road network linking China with over 125 cities across 5,000 km in Vietnam, Thailand, Singapore, Malaysia, and Laos. It features fully inclusive secure, door-to-door, day-definite distribution service with complete track and trace capabilities, supported by a 24/7 real-time GPS tracking system. The trucks depart on schedule like trains, leaving to arrive at one of TNT’s hubs and depots, in time for parcels to be unloaded, sorted, and shipped out again or delivered locally.
Due to China’s geographical proximity and close business links, Vietnam, in particular, will benefit from TNT’s completed Asia Road Network. As Vietnam’s economy continues to grow, bilateral trade volume between both countries is on the increase and offers strong business opportunities for TNT.

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ABX Air aims for smaller but more profitable post-DHL future

Posted by | Jul 3, 2008 | |

ABX Air is planning for a post-DHL future based on a smaller but more profitable business with other customers.
Joe Hete, President of the airline’s parent company Air Transport Services Group (ATSG), told analysts and investors in a conference call that the company still believed it could offer DHL a competitive model compared to the planned DHL-UPS cooperation, and warned that the connection of the two global air express networks could prove “expensive and challenging”.
Admitting that the transition from DHL operations would not be easy, Hete commented: “We expect ABX to grow and prosper without DHL.” DHL currently accounts for about 74 pct of ABX Air revenues.
ABX Air had already been diversifying its customer base for several years and was well-positioned to place the B767 fleet with other customers on a wet-lease or dry-lease basis, Hete said. About half of the DHL-dedicated B767s could be placed with other customers, he added. Key customers include USPS, the US military and freight forwarder Schenker BAX.
CFO Quint Turner noted that ABX’s activities for DHL had been “low-margin business” and stressed that the company believed it could generate a higher return on capital from other customers. Although ABX has a ‘put’ option to return aircraft to DHL, the planes have a low book value, and higher prices might be achievable if the planes were sold on the open market, executives noted.
ATSG is also talking with DHL about severance packages for ABX pilots and aircraft mechanics.

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TNT Express names new Head of Communications

Posted by | Jul 3, 2008 | |

TNT Express GmbH, based in Troisdorf (DE), have appointed Markus Gehmeyrist as Head of Company Communication on 1 July. In this position he is responsible for the merger sectors external and internal communications, as well as the events/sponsoring segment and company spokesman. Gehmeyrist reports directly to Thomas Kraus, Chairman of TNT Express GmbH. Markus Wohler, who led the press and public relations department for over 19 years, is leaving TNT by mutual consent.

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State aid: Commission endorses EUR 1.6 million training aid for DHL in Leipzig-Halle and rejects EUR 6.1 million operating aid

Posted by | Jul 3, 2008 | |

The European Commission has endorsed EUR 1.6 million of training aid at DHL’s new site in Leipzig-Halle, Germany but rejected a further EUR 6.1 of aid which would have acted as an illegal operating aid. The Commission’s decision follows an in-depth investigation under EC Treaty state aid rules launched in June 2007. The Commission concluded that the EUR 1.6 million would genuinely lead to additional training which goes beyond legal requirements and operational needs, and therefore complied with the EU state aid rules on training aid.

However, the Commission rejected as incompatible a further EUR 6.1 million of funding that would have served to finance training activities that DHL would have carried out anyway, even without aid, and concluded that the aid would be used finance ordinary operating costs of DHL. Such operating aid would have given DHL an unfair advantage over its competitors, who don’t receive such aid, and so seriously distorted competition.

Germany notified its intention to grant subsidies of EUR 7.7 million to DHL for a training project concerning certain jobs such as ground handling of airfreight, security agents, pre-flight and ramp mechanics. Following its relocation to Leipzig-Halle, DHL, with the support of regional aid approved by the Commission in April 2004,, built a new delivery and airfreight centre, where it employs around 1500 new staff, of which 480 are concerned by the training project.

The Commission is in favour of supporting training activities, because they benefit the European economy by broadening the pool of skilled workers. However, it is necessary to ensure that such aid actually motivates companies to carry out additional training activities and is not simply used to subsidise the cost of training that the company would in any case have to undertake. This is particularly necessary in a globalised economy, where companies decide to relocate to new sites and where unjustified aid can give rise to considerable distortions of competition.

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