LYNX Express gains new partners
Lynx Express says it has formed “trading partnerships” with more than 30 former franchisees of NCN Express Parcels which called in the administrator on December 23.
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FedEx to open five-plus branches in China annually
FedEx will annually open no less than five branches in China over the coming years, aiming to keep a leader position in the booming market.
Eddy Chan, FedEx Regional president for China, said that after entering the World Trade Organization, the gradually improved investment environment and logistics infrastructure in China make the country a highlight in the eyes of global logistics giants. According to the analysis made by the China International Freight Forwarders Association (CIFA), the Chinese express delivery business will increase at over 30percent annually over the upcoming years. President Chan revealed that the company held a very optimistic view on the prospect of the market.
In FedEx’s development plan, the front-runner will keep a speed to establish five or more branches every year in China. At the same time, it will extend reaches from the current 220 cities to 320 cities over a few years.
Read MoreFierce US rivalry undermines UPS profits
Analysts yesterday blamed fierce competition from FedEx and DHL for the surprise profit warning issued by United Parcel Services on Tuesday, sending shares in the world’s largest package delivery company down nearly 8 per cent in afternoon trading.
UPS has been losing domestic market share to FedEx for the past few years and now faces fresh competition from DHL, a unit of Deutsche Post, which is expanding aggressively in the US.
The company is also struggling to keep pace with its rivals in the international market, particularly in fast-growing Asia where it trails both FedEx and DHL.
Read MoreJapan Post to improve collaboration with TPG NV
Japan Post will boost collaboration with TPG NV to find ways to hasten international deliveries and tracking mail and parcel deliveries on the Internet, Nikkei English News reported, without citing anyone. The two companies may also establish a joint venture, build a network for delivering cargo by air in Asia and share capital, Nikkei said.
Read MoreContrasting outlooks from UPS, FedEx a factor of competition, analysts say
FedEx Corp.’s strength in next-day air deliveries and improvements in its ground business helped it post a more positive outlook for the quarter that includes the holiday shipping season than larger rival UPS Inc., analysts say.
Atlanta-based UPS warned Tuesday that its fourth-quarter earnings would fall short of previous estimates because of higher operating costs and weaker than expected domestic package volume from Christmas to New Year’s Day. FedEx, based in Memphis, Tenn., issued a statement saying its business remained strong over the holidays and it would meet its earnings goals.
“They’re tough competitors; one may be benefiting at the other’s expense,” Arthur Hatfield, an analyst with Morgan, Keegan & Company Inc. in Memphis, said Wednesday.
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