Tag: Courier/Express/Parcels

Distribution remains a challenge in China. Is there hope?

Posted by | Oct 30, 2006 | |

Distribution remains a challenge for foreign companies in China, but recent developments offer hope.

Moving goods around China, long a bugbear of foreign companies operating in the country, is getting easier. This is thanks to rapidly improving infrastructure and a number of key regulatory changes allowing foreign freight-forwarders to set up 100%-owned ventures and foreign companies in most sectors to operate their own distribution arms.

For specialist logistics businesses, the big change came at the end of 2005, when freight-forwarders were allowed, as agreed under the terms of China’s World Trade Organisation (WTO) accession agreement, to set up wholly foreign-owned operations. For other companies, particularly manufacturers, the introduction in 2004 of a whole new category of business—the foreign-invested commercial enterprise (FICE)—gave foreign enterprises the right for the first time to establish both wholesale and retail businesses.

A subsequent relaxation of the rules that came into effect in March this year allows local rather than central commercial authorities to approve most FICE applications. This has led to a major fall in processing time, and a huge surge in approvals. In Shanghai, the country’s biggest commercial centre, the 600-plus FICEs established in the first half of 2006 outnumbered the entire total for 2005. While various restrictions remain on FICEs’ freedom to operate, particularly on the number of outlets a company can operate in any one region, there are now no geographical limits on where a company can set up such businesses.

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UPS says evaluating Airbus A380 orders

Posted by | Oct 30, 2006 | |

United Parcel Service Inc., the world’s largest package delivery company, has set up a team to evaluate its multi-billion dollar purchase of Airbus A380 freighters, saying all options remain open.

The move, announced in a conference call with analysts on Thursday, and confirmed by the company on Friday, is a further sign of doubt among Airbus customers over the A380 superjumbo, which is now two years behind schedule.
On October 4 Airbus — majority owned by European aerospace group EADS announced a third delay to A380 production due to problems with the plane’s wiring.

The announcement caused airlines around the world to review their purchase plans for what will be the world’s largest commercial plane, although none has yet canceled orders.

UPS, whose freighter fleet makes it the world’s eighth-largest airline, has 10 A380s on order, worth more than USD2.5 billion, with an option to buy 10 more.

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TNT decides to divest Freight Management business unit

Posted by | Oct 30, 2006 | |

Peter Bakker, CEO of TNT, stated: “the business unit as such is in excellent shape, however, as we are focusing on the growth opportunities in our core Mail and Express network distribution activities, our Freight Management business unit would benefit from a different corporate environment. Our initial exploration has identified strong interest in this business.”
TNT Freight Management is a freight forwarding business using air and sea transportation and originates from Wilson Logistics which was acquired by TNT in 2004. The business unit employs 2,300 people, operating from 126 offices in 28 countries with a significant presence in the Nordic region. The business unit represents approximately euro 800 million in annual revenues.

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DHL boosts Asia Air Network with service upgrade for Hong Kong-Nagoya route

Posted by | Oct 29, 2006 | |

DHL,a leading express and logistics company, has boosted its dedicated overnight service between Hong Kong and Nagoya by replacing its existing A330-200 passenger aircraft service with an Airbus A300-600F aircraft operated by Air Hong Kong, which DHL has a 40 percent stake in.

The new freighter – which will continue to ply between Central Japan International Airport (Centrair) located in the Chubu region of central Japan, and DHL’s Central Asia Hub at the Hong Kong International Airport – has a capacity of 45 tons, which represents an increased capacity of 125 percent, or 25 tons, from the previous belly space agreement with Cathay Pacific, and it offers more than two times the current processing capacity.

The ten times weekly service will commence operations from 29 October 2006, further strengthening DHL’s Asia Air Network. DHL’s air network currently comprises 30 destinations, served by over 20 aircraft in dedicated air operations. This allows major Asia Pacific cities and other business centers to be interconnected through DHL’s regional hubs and gateways, providing DHL’s customers with overnight services across the region.

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Loylogic and Empost form strategic alliance

Posted by | Oct 29, 2006 | |

The agreement was signed between Mamoun Masarweh, General Manager Loylogic Middle East, and Sultan Al Midfa, CEO of Empost. Empost will now be the official courier service provider for Loylogic’s Middle East operations.

Loylogic is a leading reward services provider, helping clients worldwide to differentiate their loyalty programs, combining loyalty expertise with technology and a fast-growing reward partner network. Loylogic is headquartered in Zurich, Switzerland, Loylogic’s Middle East office is located in Dubai.

Empost, the UAE’s national courier company, has signed a strategic agreement with Loylogic, reward services provider for frequent flier, credit card and coalition loyalty programs. Under the agreement, Empost will offer Loylogic its range of express courier services to deliver rewards to the latter’s clients throughout the Middle East.

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