Tag: Courier/Express/Parcels

Kraft Foods expands business with DHL as its primary US express carrier

DHL announced that Kraft Foods has renewed and expanded its contract with DHL as its primary US express carrier. DHL will provide US express shipping services for Kraft Foods.

With annual revenues of more than USD 34 billion, Kraft Foods markets a broad portfolio of brands such as Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese; Nabisco cookies and crackers; Jacobs coffees and Milka chocolates.

DHL will provide express services for Kraft’s letters and small package shipments, including pickup and delivery of food product samples, point-of-sale advertising, inter-office documents and payroll, and product-sampling items – for Kraft vendors, plants, distribution centers, and its corporate offices.

DHL has also been chosen by Kraft Foods as a provider for US ground delivery and international express services.

“Kraft has been a valued partner for nearly 20 years,” said Charles Brewer, Executive Vice President of Sales, for DHL. “We are seeing many of the largest multi-national companies enhance their operations by leveraging DHL’s flexibility, customer-focused commitment, and ongoing US network enhancements.”

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Confidential details fall off the back of lorries

A box containing the banking details of 200 rich investors was found by the side of the road after apparently falling off the back of a courier’s van.

The container, which included cheques and other sensitive papers, was supposed to be safely carried between a Prudential building in Reading to a secure storage facility in Essex by a DHL courier. Instead, it wound up close to a motorway slip road.

Financial details of 200 wealthy investors, including three national lottery winners, were exposed as a result. Luckily, the box was discovered by a vehicle recovery driver on a roundabout close to the slip road for Junction 11 of the M4 near Reading in Berkshire. The documents have since been returned to Prudential.

Preliminary results from an investigation into the incident suggests that the box fell out of a van door that the DHL driver had failed to properly close. Prudential has suspended the use of DHL as a courier until the investigation is over, This is London reports.

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Japanese express service ties create strange bedfellows

The shifting express landscape in Japan is producing some unusual alliances. Concern about the international integrators encroaching on their turf has induced domestic rivals to form pacts with one another.

On December 18, All Nippon Airways, Kintetsu World Express and Nippon Express signed a memorandum of understanding to set up a joint venture company for international business-to-business express delivery service in Asia. Operations of the new company are slated to commence on April 1 of this year.

ANA will have a 34 percent stake in the new company and Nippon Express and Kintetsu will each take 28 percent, with the remaining 10 percent going to other forwarding companies.

The partners pointed to growth of international logistics and the need for integrated strategic distribution services as the main reasons for their alliance. They stressed the need in Asia for reliable logistics services that can support businesses with rapidly expanding production bases.

The new partnership seems to be a conflict of interest for ANA, which already formed a joint venture cargo airline with Japan Post that took to the air last year with a fleet of B767 freighters. However, the new carrier, which flies to a number of Asian destinations as well as to the US, has signalled that Japan Post’s volumes are not enough to fill the aircraft, so it has been looking for partners to generate more cargo. A planned partnership between Japan Post and TNT has failed to materialise.

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Deutsche Post World Net launches Mail 24/7 service

In Berlin, the first so-called Mail 24/7 was put into operation today. This service island combines self-service options in a modern and compact design. At Berlin Südkreuz station, an easy-to-reach location with high volumes of foot traffic, the largest of the three versions available has been set up. It consists of a cash dispensor, a printer for bank statements, a Packstation, a stamp machine and mail boxes.

A total of thirty service islands are currently installed in Berlin with a further fifteen in Bonn and fifteen in Dortmund. There are three versions of Mail 24/7: ranging from a basic solution with a parcels box, stamp machine and mail box to the premium model with all existing self-service machines. All models are characterised by their user-friendly applications and uniform design. To make the services easier to use around the clock, the units are also lit up at night time.

With what are soon to be more than 13,500 retail outlets throughout Germany, some 900 PACKSTATIONS and shortly 1,000 PARCEL BOXES, Deutsche Post World Net is miles ahead of the competition in terms of accessibility and comfort. With Mail 24/7 the largest logistics company in the world is once again expanding its range of services and so reinforcing its position as the only full-fledged universal services provider in Germany.

If the service is received positively by customers during the trial phase, Deutsche Post will also set up 24/7 service islands in other cities.

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FedEx to stay with contractors (US)

Top managers of FedEx Corp. said last week they have no plans for major changes in the company’s reliance on contract drivers for its ground delivery division.

“We’re continuing to operate with our independent contractors, so you have to go from that premise,” said Dave Rebholz, Chief Executive of FedEx Ground.

Rebholz joined FedEx Chief Executive Frederick W. Smith on a conference call with market analysts to underline the company’s confidence in defending the independent-contractor model against a challenge by the IRS

The IRS issued a preliminary decision last month challenging FedEx Ground’s use of contract drivers instead of making its drivers employees. The decision, which FedEx vows to fight, assessed tax penalties and interest of USD million. The IRS decision is the latest in a series of attacks, primarily through lawsuits, on FedEx Ground’s independent-driver business model.

But Smith said most FedEx Ground drivers like running their own businesses as private contractors. “There are millions of people in this country who have chosen to work for themselves,” Smith said. “I personally believe that’s what freedom is all about.”

While declining specifics on the company’s arguments, general counsel Chris Richards said FedEx will begin meeting in the spring with the IRS over its decision.

Following a legal challenge to the contractor model in California, FedEx is offering financial incentives to single-route drivers there to encourage them to give up their routes or take on multiple routes.

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