Tag: Courier/Express/Parcels

Spend and deliver: UPS acquisition of Overnite

Posted by | May 17, 2005 | |

Even UPS has its gaps. The world’s largest package delivery company plugged an obvious one with yesterday’s acquisition of Overnite. The deal takes UPS into less-than-truckload freight services in the US for the first time, after several years watching the success of rival FedEx in that area. Overnite is no steal for UPS. The delivery group is paying a 46 per cent premium, while giving no guidance on the synergies available to justify such a chunky uplift. There should be some. UPS will be able to squeeze some benefits from having a ground freight network to link with the air freight operations of Menlo Forwarding. From the customer perspective, UPS will be able to offer a more complete set of products. Having filled an obvious gap in the US, UPS could turn its attention to faster growing international markets for its next move. Exel, the UK-based logistics group with a strong international presence, would, for example, be a bigger bite. Investors should not underestimate UPS’s appetite.

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DHL named best express operator and best 3PL at the 2005 Asian Freight & Supply Chain Awards

Posted by | May 17, 2005 | |

At the prestigious 2005 Asian Freight & Supply Chain Awards (AFSCA) yesterday evening in Hong Kong, DHL was named Best Express Operator for the 19th consecutive year, reflecting the company’s market leadership and service excellence in air express offerings in Asia Pacific. DHL also clinched the Best 3PL accolade for the first time, in recognition of DHL’s expertise in supply chain management. Both awards underscore DHL’s leadership and ability to offer the full suite of express and supply chain solutions from a single source. “We are extremely honoured to receive these accolades,” said Scott Price, Chief Executive Officer, DHL Express Asia Pacific. “The awards represent our customers’ vote of confidence in DHL. Over the last few years, we have put in place a carefully thought-out strategy building on our infrastructure investments, domestic acquisitions, network coverage; and the development of innovative express delivery solutions in response to a changing marketplace.”

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Otto Gruppe to open up distribution network to external customers

Posted by | May 16, 2005 | |

German mail order company Otto Gruppe is planning to open up its distribution network to external customers, according to a report in German daily Die Welt to be published tomorrow, citing unidentified sources.

Otto, which has been using its seven distribution centres and warehouses for the company’s own distribution needs, wants to offer its services to external customers in a bid to counteract falling sales at its German mail order business, which dropped around 5 pct last year, and to compete with rivals such as Deutsche Post AG’s DHL unit, the newspaper said.

The company is currently developing a plan on how to open up its business, with a final decision expected by mid-July, it said.

Otto Gruppe declined to comment, Die Welt added.

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US FedEx taking advantage of UPS pilots’ strike vote

Posted by | May 16, 2005 | |

With a majority of UPS’ pilots recently voting to strike, analysts say FedEx is taking advantage by offering its 4,300 pilots more than USD500 million in raises and signing bonuses if they agree to work under their 1999 contract and cease negotiations.

“If you are Brand A and you see Brand X in negotiations, your greatest desire is to get your deal done first so the other guy is forced to bargain based on your deal,” said David Field, Americas editor of Airline Business, a London-based monthly magazine. “Whoever signs first stands to have a 1 percent or 2 percent advantage.”

The Independent Pilots Association, which represents Atlanta-based UPS’ 2,483 pilots, and UPS company officials have been in federal mediated talks since last June but have not been able to reach agreement on issues involving scheduling, scope, compensation, pension and benefits.

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UPS adds ground freight options by acquiring Overnite Corp.

Posted by | May 16, 2005 | |

UPS and Overnite Corporation today jointly announced a definitive agreement for UPS to acquire Overnite for USD43.25 per share, or approximately USD1.25 billion in cash. The transaction will allow UPS to expand its service portfolio by offering a variety of less-than-truckload (LTL) and truckload (TL) services to its North American customers. It also will immediately position UPS as a top US LTL carrier and comes just five months after the company expanded its air freight services by acquiring Menlo Worldwide Forwarding. The acquisition, expected to close during the third quarter of 2005, is an all-cash transaction that will require regulatory approvals and the approval of Overnite’s shareholders. The Overnite Board of Directors has unanimously approved the agreement and recommended approval by its shareholders.

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