Tag: Courier/Express/Parcels

Canada E-Commerce Growing Quickly

Online sales increased at a double-digit pace for the sixth consecutive year in 2007, according to Statistics Canada. Total private and public sector Internet sales hit an estimated C$62.7 billion ($58.6 billion), up 26% from 2006.

Despite the continued strong growth, e-commerce still represents a relatively small fraction of total economic activity, at about 2% of total operating revenue.

Statistics Canada said that only about 8% of Canadian private sector companies sell goods and services online.

In the private sector, business-to-business sales accounted for 62% of online sales in 2007, down from 68% in 2006. The proportion of online business-to-consumer sales climbed from 32% to 38%.

B2C e-commerce sales therefore reached C$23.8 billion ($22.2 billion), or 38% of C$62.7 billion. That is almost 50% higher than eMarketer’s November 2007 estimate. eMarketer counts online travel, tickets and digital downloads as services, not products, and thus excludes them from its estimate.

It is estimated that customers outside Canada generated almost one out of every five dollars (19%) in online sales in the private sector, similar to the last two years.

While Canadian consumers are comfortable purchasing travel, media products, and computer hardware and software online, they tend to shy away from high-touch categories such as apparel and home furnishings. Instead, they head to one of their excellent shopping malls. A common explanation for this tendency is that, unlike Americans, Canadians lack a catalog tradition and have not been conditioned to shop remotely.

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Spree of acquisitions on courier service market in Romania

The Romanian courier services market has seen several acquisitions since the beginning of the year that have introduced major players such as UPS and the French Post Office on the domestic market, while the German Post Office has strengthened its position, and the Austrians remain interested in the market. So what is in store for the courier services industry?

Domestic couriers had announced as early as two years ago that they planned to attract strategic investors or investment funds to further develop some businesses on one of the most dynamic markets in Romania

Still, the first deals were only clinched as late as at the beginning of the year. The spree of acquisitions started with the direct entrance of UPS in Romania, through the acquisition of Trans Courier Service, and continued with the biggest deal sealed so far on this market, the sale of Cargus to DHL.

While the German Post Office provider acquired Cargus to strengthen its presence on the market, the French Post Office in turn took over a company to enter the Romanian market. Thus, the courier service unit GeoPost and Turkey’s Yurtici Kargo took over 80% in Pegasus, in a deal ZF estimates at 6-9m euros.

Domestically, sale announcements also came from TCE Logistica and Curiero. While TCE representatives are preparing to start talks, Curiero has already reached an agreement with Asesoft for a 25 pct stake.

Smaller companies on the market, such as Sprint Courier, Concorde Courier, Alo Courier, Nemo Expres and Roexpres, are also likely to be the target of some acquisitions in the following period considering the large investments required to support growth and remain competitive.

In addition, a rising number of foreign shipping, courier and logistics companies are interested in the domestic market, which includes the Austrian Post Office.

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trans-o-flex puts European network on new footing

trans-o-flex have laid a new foundation for their European distribution network Eurodis. “We have re-launched Eurodis GmbH, the management company of our specialist 21-country network,” explains Klaus J. Heinz, Executive Board Chairman. “Now we are in a position to welcome our key international partners as shareholders with similar rights and obligations and to involve them in the development of the network.” Redur Lozano, the Spanish Eurodis partner, has already taken this up and acquired a 20 pct stake in Eurodis GmbH. At present, trans-o-flex and the Austrian Post each hold 40 pct of the stock, but they are prepared to halve their holdings to take other partners on board.

While other international networks are usually managed and controlled from a single national perspective, Eurodis can become the first truly international alliance thanks to the equitable shareholding structure, according to Heinz. “Our target is to offer Spanish solutions in Spain, English ones in England and French solutions in France.” Equally, the cross-border ownership of shares serves to reinforce the partners’ mutual ties.

In parallel to the changes on the capital side, the role and functions of Eurodis GmbH are growing. Apart from its coordination aspect, it will in future also manage and control the international alliance. It will manage the partners and the financial adjustments between them, known as clearing, and be responsible for international shipment track and trace and the further development of it.

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City Link confirms commitment to major customer with new joint liveried trailer

City Link has reinforced its ongoing commitment to Karndean, a flooring supplier, with the presentation of a joint liveried trailer.

The eye catching vehicle serves to raise the profile of both companies. City Link will use it to deliver Karndean’s design flooring to retailers and commercial contractors across the country.

Stuart Godman, City Link’s Sales and Marketing Director, said: “We have been working closely with Karndean over the past three years to deliver a quality service to flooring customers. This liveried trailer is a sign of our commitment to continue this successful partnership and maintain a high standard of service.”

Karndean’s Operations Director, John Wright, commented: “City Link has played a key role over the past three years in supporting Karndean’s commitment to quality customer service. We look forward to continuing this partnership and using this trailer to meet the needs of our valued customers. ”

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