Tag: DHL

USPS exclusive carrier of packages to the last-mile for DHL

Posted by | May 29, 2008 | |

The U.S. Postal Service said that the international delivery company DHL will leverage an existing agreement to give the Postal Service exclusive delivery services to the last-mile in certain locations. The expanded agreement will build on the existing arrangement through a combination of the Postal Service’s Priority Mail and Parcel Select products.
Since 2003, the Postal Service has provided last-mile delivery for DHL in over 20,000 ZIP Codes nationwide through its Parcel Select service. This expansion makes USPS the exclusive provider of delivery service to DHL for 3,600 of the nation’s 46,000 ZIP Codes through use of Priority Mail and Parcel Select service.

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DHL India wins Frost & Sullivan Award

Posted by | May 29, 2008 | |

DHL India has been awarded the `Best International Logistics Service Provider’ and the `Best Brand Awareness in the Indian Logistics Industry’ for the year 2007 by Frost & Sullivan. This award is in recognition of its outstanding performance in customer experience and satisfaction for the year 2007.

Frost & Sullivan has been conducting studies on the logistics industry in India among various industry verticals to understand customer expectations with regard to their logistics service providers; also to benchmark current performance of the industry against these expectations. This year, a total of eight verticals were considered namely, Retail, Consumer Durables, Fast Moving Consumer Goods, Automotive, Automotive Components, Pharmaceuticals and Information Technology. Opinions from top industry participants from each vertical were taken into consideration.

Respondents were asked to rate each of their logistics service providers on various parameters such as general parameters, transportation, warehousing, 3PL and freight forwarding. Apart from these parameters, direct questions pertaining to brand awareness and best international service provider were asked. Best Brand Awareness and Best International Service Provider scores were based on top-of-the-mind responses for a service provider.

In both these categories, DHL topped with the highest score. The company scored on key parameters like ability to deliver on time, damage control of materials at warehouse and transit, consignment tracking facility and transparency in processes.

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USPS targets large shippers

Posted by | May 28, 2008 | |

USPS is expected to announce a slate of large express freight contracts in August after being allowed to bid for commercial contracts for the first time.

Earlier this month, USPS was allowed for the first time to offer tailored contracts to customers, having been almost frozen out of the commercial market.

Previously, the company had to offer flat-rate pricing to all customers. “In express, it was extremely limiting,” said Gary Reblin, vice president for expedited mail at USPS. “We realized we were behind the eight-ball.”

Reblin said in an interview that USPS is bulking up its sales force to target niche markets such as small businesses and the retail returns sector, focusing on smaller packages.
USPS said it had an advantage over rivals by leveraging its existing mail and package delivery infrastructure.

He said a number of larger shippers were starting to commit to its service, and the company plans to announce a number of three-year contracts later in the summer.
USPS differs from existing operators in offering flat-price deals with annual increases, avoiding the fuel surcharges that shippers said were becoming an increasingly important part of contract negotiations.

The company has a market share of around 30 pct in the U.S. air express market – ranking first above FedEx – but only 4.3 pct of the expedited segment for next-day and two-day delivery.

Reblin said it aimed to grow its share of the expedited market, but declined to provide targets.

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UPS to provide lift for DHL Air Express packages in North America

Posted by | May 28, 2008 | |

UPS announced it will work with DHL Express U.S. toward an agreement to provide transportation in its air network for all of DHL’s express, deferred and international package volume within the United States. UPS also would provide air lift for DHL packages between the United States, Canada and Mexico.

A final contract is anticipated later this year. The agreement, when finalized, would be expected to extend for 10 years and produce up to $1 billion in additional annual revenue for UPS. The company said it would begin phasing in a limited amount of volume in 2008 with ramp up in 2009.

The agreement would not involve the pick-up or delivery of DHL packages to their customers, only the transport of packages, primarily between airports, in North America. As such, the work will be similar to that currently performed by UPS for the U.S. Postal Service.

UPS will be able to handle much of the anticipated new volume in its existing air network, although additional capacity will be added beginning in 2009 upon full implementation. The total amount of capacity needed will be determined at that time; however, UPS is currently scheduled to take delivery of seven new aircraft in 2008 and another five in 2009. The company is also well along on a USD 1 billion expansion of its UPS Worldport air hub in Louisville, Ky.

The arrangement with UPS is part of a broader U.S. restructuring announced by Deutsche Post World Net at a press conference in Bonn, Germany.

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DHL sign air freight agreement with USPS and FedEx

Posted by | May 27, 2008 | |

DHL signed a major ground and air freight agreement with the United States Postal Service and its principal air express operator, FedEx.

Deutsche Post World Net plans to announce details of the agreement via webcast from Bonn.

The agreement calls for FedEx to carry some air and ground freight on behalf of the USPS. Sources familiar with the agreement said FedEx will takeover those unprofitable air routes initially and increase the service gradually.

DPWN Chief Executive Officer Frank Appel is also expected to announce the closing of a quarter of DHL’s U.S. stations and the elimination of hundreds of jobs. DHL is expected to redirect its growth efforts on its international service.

FedEx and DHL declined to comment and the USPS was non-committal about the venture.

In January 2001, FedEx and the Postal Service announced two major agreements. One called for FedEx Express to provide airport-to-airport movement of containers holding around 3.5 million pounds of Priority Mail, Express Mail and First Class Mail. The other part of the agreement involved the drop off of packages at FedEx Drop Boxes nationwide. At that time, the venture was expected to generate approximately $1 billion a year for FedEx.

The USPS declined to say how much it pays FedEx annually.

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