Tag: Courier/Express/Parcels

Russian express market share / volume

In Russia DHL has been working since 1984. Now it has 100 its own and agent offices in the territory of the country. Turnover of the company in Russia is not disclosed. According to the Russian division of DHL, in 2004 it will transport 3.2 million cargoes including 60% inside of the country. According to Post of Russia, the market of Russian express delivery market is estimated at $200-250 million (some market players estimate it at $500 million), $150 million of this sum being international delivery more than 70% of which is controlled by the “big four”: DHL -45% (DHL estimates its share at 57%), UPS and TNT- 15% each and FedEx – about 4%. In domestic delivery market significant market shares belong to Pony Express and SPSR Express.

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DHL to set up terminal in Moscow

In 2005 DHL controlled by Deutsche Post World Net plans to set up its own terminal worth EUR9.5mln with an area of 10,000 square meters in Moscow. Besides, DHL targets to construct terminals in St.Petersburg and Samara. A total of EUR20mln will be invested in these projects. The above-said terminals are designed for receipt and handling of foreign and domestic cargo that will be delivered to Russian regions.

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China’s couriers take on the big players

Low-cost Chinese delivery companies are increasingly trying to take on global express carriers such as DHL and FedEx in China. Companies such as Golden Monkey Express, a Beijing delivery service, are strengthening their international network and beefing up services at home. Pony Express, which is also based in Beijing, even boasts an online track-and-trace service through a partner company. China Post’s EMS service and global express groups such as DHL, FedEx and UPS still handle the bulk of international shipments in and out of China. However, as foreign executives look to the domestic Chinese market, the low-cost delivery services are said to be making their mark. “(China has) this exploding market of little players . . . We’ve got a lot of very small, very aggressive people entering the market,” John Mullen, chief executive for Asia Pacific at DHL Express said.

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Overcapacity holds domestic parcel prices down

Domestic parcel rates may not be moving up very quickly, but shippers can expect to see surcharges in the coming year, says James Valentine, a senior analyst with equity research firm Morgan Stanley.

Based on a recent survey of parcel shippers, Valentine sees overcapacity holding rates down–shipper expectations are for a 1.2percent rate increase from UPS ground and a net decrease of 0.3percent from FedEx ground. However, there is currently no ground fuel surcharge, but this could easily change in 2005, Valentine states.

FedEx has been growing its ground business at 10percent per year, says Valentine, and now DHL has expanded its presence in both the ground and air parcel segments. UPS as well has grown its air business, a market which Valentine says is only increasing at 1percent to 2percent per year over the last six or seven years.

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FedEx adding more flights to Germany

FedEx Corp. said Monday it is adding more trans-Atlantic flights, part of a plan to boost capacity to Europe. The company said the flights from its main hub in Memphis to Cologne, Germany will allow it to better serve that country’s industrial heartland. FedEx said it will add the flights in March, bringing its trans-Atlantic total to 28 a week from 23 a week. The increase in flights to Europe is part of a plan to capitalize on rising international express shipments.

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