Tag: Courier/Express/Parcels

DPD Masterlink investment plans for 2007

DPD Masterlink investment plans for 2007 are expected to total 6 million euro. At the beginning of spring the company plans to set up a new, 5,000 square metre depot in Gdansk. This investment will cost approximately 2.5 million euro. The new depot will be built in compliance with the company’s strategy of seeking to purchase properties when establishing new branches, instead of renting the existing infrastructure. The costs of the investments planned for 2007 will be covered partially from the company’s own capital and through leasing agreements.

Employee numbers are also expected to continue to grow. At the end of 2006 DPD Masterlink employed 3,600 people. By the end of 2007 total employee numbers are expected to rise to around 5,000.

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Hermes plans B2C service in Austria

Hermes Logistik, the German B2C parcel delivery subsidiary of German retailer Otto Group, is reportedly planning to set up its own service in Austria in competition to Austrian Post.

The Otto Group has cancelled its contract with Austrian Post for domestic delivery of parcels from its subsidiaries Otto Austria and Universal, German newspaper Die Welt reported, citing Austrian Post sources. These two companies alone could account for 10 million parcels a year, or about 25% of the country’s total B2C parcel market, it wrote.

Instead, Hermes Logistik would set up its own network to distribute parcels of the Otto Group companies, which focus on fashion and electronic, from this spring, Die Welt reported. Hermes could set up a network of ParcelShops like in Germany as alternative drop-off and collection points. The company was also in talks to take over parcel delivery for mail-order group Quelle in Austria, it added.

Hermes declined to comment on its plans for Austria, Die Welt said. However, the company already said last year that it aims to create a European B2C distribution business, and was considering entering markets such as Italy, Spain or Austria.

In Germany, Hermes Logistik has grown rapidly in recent years and now has a share of about 24% of the B2C/C2C market, according to CEP-Research information. It expanded beyond domestic distribution last autumn with the launch of deliveries to European destinations through a partner network.

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Interview – FedEx eyes booming Middle East-India trade

FedEx is seeking to take advantage of the fast growth in trade between India and the Middle East with its direct flights between the two regions, a senior manager told CEP-Research in an interview.

The US integrator expanded its Middle East capacity in autumn 2005 by upgrading weekday flights from its European air hub in Paris to the Middle East hub at Dubai with an MD-11 freighter. It also started its own flights from Dubai to India in place of using commercial capacity. FedEx now has a daily eastbound and westbound service using MD-11 flights that operate from Paris via Dubai to Delhi and Mumbai, and return via Dubai to Paris.

“The MD-11 flights open up the market with large capacity,” said Brian Britnor, senior manager sales, Middle East & Africa, on the sidelines of this week’s World Mail & Express Logistics Middle East, Africa & South Asia conference in Dubai. Trade between India and Dubai, which has a large Indian business community, has more than quadrupled since 2002 to reach $10.9 billion in 2006, according to official statistics from Dubai released at the end of February.

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FedEx completes acquisition of Chinese firm

FedEx has completed the purchase of Tianjin Datian W. Group Company’s 50% share of the FedEx-DTW International Priority express joint venture and DTW Group’s domestic express network in China for approximately USD400 million in cash.

“China continues to be one of the fastest growing markets in the express industry and a key to FedEx international growth and profitability,” said Michael L. Ducker, president, FedEx Express International.

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UPS to cancel A380 order

UPS announced its intent to cancel later this year an order for 10 Airbus A380 freighters.

The final cancellation decision will be formally presented to Airbus on the first date specified under an agreement reached last week that gives either party the right to terminate the order.

Last week’s agreement specified a revised delivery schedule that delayed UPS’s first A380 jumbo freighter from 2010 to 2012. UPS originally expected its first freighter in 2009.

UPS had intended to complete an internal study of whether it could wait until 2012 for the aircraft, but now understands Airbus is diverting employees from the A380 freighter program to work on the passenger version of the plane.

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