Tag: Courier/Express/Parcels

Atlas Air gets approval for DHL deal

Posted by | May 10, 2007 | |

Atlas Air Worldwide Holdings Inc., which provides air cargo services, on Thursday said it received U.S. Department of Transportation approval of a strategic partnership with delivery company DHL Express.
Under the deal, DHL Express will pay USD 150 million in cash for a minority interest in Atlas Air unit Polar Air Cargo Worldwide Inc. Polar will get a long-term, major customer out of the deal, while DHL will have access to Polar’s aircraft capacity.
Polar said it could see more than USD 3.5 billion in revenue from the 20-year commercial agreement with DHL. The deal is set to close in the late second quarter.
Shares of Atlas Air slipped 29 cents to USD 58.61 in morning trading.

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DPD plans more parcel shops in Germany

Posted by | May 9, 2007 | |

DPD plans to build up a network of parcel shops across Germany to develop its currently small B2C business and take on DHL and Hermes. The move is part of a new strategy to broaden its product portfolio both in Germany and internationally.

“We have adopted a clear growth strategy,” DPD joint CEO Hans Fluri told German newspaper Die Welt in an interview. The German B2B market leader, with annual revenues of about EUR 1 billion, increased parcel volumes about 5.5% and turnover by 7% last year, the newspaper said. In the B2C market, however, DPD with 35 million shipments lags well behind DHL and Hermes (200 million parcels).

To expand its consumer parcels business, the La Poste subsidiary aims to build up its small network of DPD Shops. “Today we have about 500 DPD Shops. By the end of 2007 we want 2,500 outlets. By 2010 we are aiming for 5,000 shops,” Fluri said.

Although Hermes, with 13,000 outlets, and GLS (4,000) are much larger, DPD sees potential for a third network, he added. “Customer behaviour in terms of parcel shops is not yet fixed and will change. We are convinced that as a well-known firm we have a good chance,” Fluri stated.

Meanwhile, DPD now offers its international parcel distribution by air express to more than 220 countries through a network of cooperation partners, Die Welt reported. Prices are about 40% lower than normal air express rates, and transit times are 1-2 days longer. DPD recently enhanced its express service within Germany with new service options.

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Intense changes in the Chinese express delivery market

Posted by | May 9, 2007 | |

China’s express delivery market is facing a time of unprecedented change. Four major foreign players, China Post, private local firms and State-owned companies are all busy adjusting their strategies, and the government is poised to revise business policies.

After UPS broke from its local partner – Sinotrans, Fedex spent $400 million to acquire the remaining stake of its joint venture with the Chinese firm DTW Group. It also bought all of DTW’s assets in the domestic and international express delivery markets.

And while foreign giants are expanding in China, the State-owned giant, China Post, is attempting to gain the upper hand with a possiblly favorable postal law, sparking cries of foul play from foreign and local private firms.
Fedex’s buyout of its local partner signifies the acceleration of foreign express delivery firms’ expansion in China.

DTW’s domestic express delivery business suffered losses of 60 million yuan in its first 11 months in 2004, but Fedex still spent USD 400 million for DTW, which highlights Fedex’s desire for DTW’s network.

Industry sources say Fedex is trying to catch up with its competitors. DHL announced its entry into the domestic express delivery market in 2004, TNT has already begun domestic parcel delivery and UPS has the rights to international express delivery business in tier-one cities.

The joint venture agreement with DTW was originally expected to expire in 2009, but Fedex bought out the Chinese firm because it wanted immediate exposure to the domestic market.

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TNT stamp price regulation workable

Posted by | May 9, 2007 | |

A proposal before the Dutch parliament to regulate mail company TNT’s stamp prices as part of market liberalisation is workable, the Dutch post and telecoms regulator OPTA said on Wednesday.

Analysts have said the proposal by the Christian Democrats and the Labour party, both part of the ruling Dutch coalition, could knock up to 10 percent off TNT’s valuation.

The proposal would set stamp prices for part of TNT’s mail business based on costs and a “reasonable return” initially, followed by increases in line with inflation in the following years.

The proposed amendment to the country’s new postal law would affect the “universal service”, which includes delivery of letters and parcels and represents a significant portion of TNT’s mail revenue.

A TNT spokesman said amendments to the law could still be changed and that the company would react only to the final proposals.

The economy ministry is working on its reponse to the various amendments and will send a letter to parliament soon, probably next week, a spokesman said.

Last month, the Dutch parliament again delayed a vote on the postal law, which is meant to end TNT’s remaining monopoly, as the economy ministry requested more time to study amendments.

TNT still has a monopoly on letters weighing up to 50 grams, representing about half of the 2 billion euro Dutch mail market. The government wants to open the market from January 2008.

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