Networks: The Key to European Logistics
Networks: The Key to European Logistics
Read MoreTag: DHL
FedEx revives talks to buy rival TNT
FedEx is in preliminary talks to acquire TNT, its smaller Dutch rival, in a deal that would bolster the package-delivery company’s parcel network throughout Europe.
While FedEx and United Parcel Service have coveted TNT’s parcel business, they have been reluctant to take on the Dutch company’s slower-growing postal division.
UPS’s interest in snapping up TNT has waned in the past decade as it built its own European delivery network. The company recently forged closer ties to TNT’s main rival, DHL, through its agreement to ferry the Deutsche Post unit’s packages between North American cities.
Deutsche’s GBP 3.7bn acquisition of Exel, the UK-based logistics group, in 2005 has been the sector’s biggest deal to date.
On Friday, FedEx’s market capitalisation was USD 22.8bn (GBP 11.5bn), while TNT stood at USD 11.3bn.
TNT, which primarily operates in Europe and North America, divides its business into two segments: express and mail.
FedEx remains the largest player in the market it pioneered: express delivery. While its biggest operations remain in the US, it has sought to expand overseas.
In Europe, the company aims to build out both its intra-continental network while establishing a local presence in discrete countries. FedEx bought ANC in 2006 to strengthen its domestic express-delivery business in the UK.
In June, FedEx posted its first quarterly loss in 11 years and projected earnings that fall short of analysts’ estimates because of fuel costs and declining demand.
Read MoreGlobal integrators keep driving up fuel surcharges for air express
Top express companies including DHL, FedEx, UPS and TNT have further increased their fuel surcharges for air express shipments in July as a result of dramatically rising oil prices around the world.
DHL Express hiked its US air express and international fuel surcharge to 34 pct for the 29 June – 2 August period compared to 30 pct in June and 27 pct in May.
In Europe, DHL currently has an air express surcharge of 20 pct, up from 18.5 pct in June and 17.5 pct in May. In Asia Pacific, DHL’s fuel surcharge has risen from 21.5 pct in May and 23.5 pct in June to 26.5 pct in July.
FedEx Express increased its fuel surcharge for US domestic, import and export shipments to 32.5 pct for the July 7 – August 3 period from a previous 28 pct in June and 25 pct in May. In Europe, Middle East, India and Africa (EMEA), the FedEx fuel surcharge was hiked to 20 pct for July 7 – August 3 from 18 pct in June and 17 pct in May.
In Asia, where its surcharges vary by country, the July export shipment fuel surcharge in Singapore is 24.5 pct, up from 22 pct in June and 20.5 pct in May. The import shipment fuel surcharge for July is 26.5 pct, up from 24 pct in June and 22.5 in May. In Hong Kong, the FedEx fuel surcharge for exports and imports is 24.5 pct for July, up from 22 pct in June and 20.5 pct in May.
UPS has increased its US domestic and international air express fuel surcharge to 32.5 pct effective July 7 from the previous 28 pct applied in June and the 25 pct charged in May. In Europe, UPS hiked its fuel surcharge for express and expedited shipments to 20 pct from July 7 onwards from the previous level of 18.5 pct in June and 17.5 pct in May. In Asia, the UPS package service fuel surcharge went up to 24.5 pct on July 7 from 22 pct in June and 20.5 pct in May.
TNT Express increased its European fuel surcharge to 21.5 pct for the June 30 – 3 August period from 20 pct in June. In the UK, where it has different fuel surcharges, the global express surcharge went up to 13 pct in July from 11.5 pct in June. The separate UK domestic and economy express surcharge increased to 6.5 pct in July compared to the June and May figure of 5.5 pct. In the rest of the world (excluding the Americas), the TNT surcharge is at 27 pct for July compared to 23 pct in June. In North America, its fuel surcharge rose to 34.5 pct in July from 30 pct in June.
DHL introduces GoGreen service to China
DHL will introduce its GoGreen Express service in 17 countries across the Asia-Pacific region this year. The service is created for customers who are looking for an eco-friendly shipping option. In China, the carbon-neutral service will begin in July.
The GoGreen Express service was first launched in January 2007 in Europe at the World Economic Forum in Davos to help the forum achieve its carbon neutral commitment. Participants at the meeting were provided with the opportunity to ship event materials via the carbon-neutral package delivery service.
In addition to that, DHL is also stepping up its use of low emission and energy efficient vehicles for its pick-up and delivery services in China.
DHL-Sinotrans, a 50-50 joint venture between DHL and China National Foreign Trade Transportation (Group) Corp, has bought 43 delivery vans that meet the stringent Europe IV emission standard.
Over the past two decades, DHL-Sinotrans has developed the largest network of international express delivery firms in China by covering more than 400 cities. It operates over 1,800 vehicles.
China is one of DHL’s fastest growing markets by contributing 25 percent of its revenues in Asia Pacific and 10 percent of the global sales. DHL maintained annual growth rate of 35-45 percent in China in the past years.
Read MoreTDG signs contract with DHL to equip Boeing 757 fleet with UFI
TDG Aerospace, manufacturer of safety solutions for the commercial aviation industry announced that DHL has selected its UFI STC ST01950LA as an approved method of compliance and terminating action to FAA airworthiness directive AD 2008-11-07. TDG’s patented UFI is a single compact unit that fulfills all required functionalities of the latest B757 AD, including automatic shut-off for the center tank fuel pumps and installation of secondary pump control relays.
The company’s patented UFI fault detection system protects aircraft electrical systems and components from faults in critical areas, such as fuel boost pump motors and related wiring. In fuel boost pump applications, TDG’s UFI device provides comprehensive electrical fault protection and fuel boost pump automatic shut-off for center tank fuel systems. Additionally, the UFI unit provides a redundant relay solution to prevent un-commanded operation of the pump in the event of a failed control relay. TDG’s UFI system is the only single installation available that provides comprehensive protection against potential ignition sources identified by Special Federal Aviation Regulation (SFAR) 88 system reviews.
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