Tag: DHL

Deutsche Post shares slump amid DHL concerns

Posted by | Feb 15, 2006 | |

Deutsche Post on Wednesday abandoned its break-even target for its struggling DHL package delivery arm in the US and said it would stop reporting separate results for the unit. The news led to a substantial sell-off of the stock. The German postal group, the world’s largest logistics company, has been plagued by problems, particularly over service levels, following its acquisitions of DHL and Airborne, a Seattle-based delivery company bought for USD1bn in 2002. It had promised to break even in the US by the last quarter of this year but on Wednesday it merely said that “[DHL] will continue its path towards break-even in the coming years”. It also said it would no longer break results down geographically because none of its rivals, such as FedEx and UPS, did. Shares in the German group, which loses its domestic postal monopoly next year and has been seeking to expand abroad to compensate, plunged 3.6 per cent, making them the biggest losers among Frankfurt’s blue-chip stocks. “If people were being mean, they could argue that Deutsche Post wants to hide the progress of the US operations,” said one German-based analyst. “It is definitely not an encouraging sign.”

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INVESTING IN CHINA: A dogfight for courier service dominance

Posted by | Feb 15, 2006 | |

When FedEx paid Dollars 880m for Flying Tigers, a cargo airline, in 1988, it was buying a piece of Chinese history. Flying Tigers was founded by, and named after, a group of American volunteer fighter pilots who flew for China against Japanese forces in the second world war.

FedEx, however, was more interested in the international cargo network that came with the deal – including access to China.

The acquisition helps explain why, nearly two decades later, FedEx operates more flights to China than any other express delivery company.

Next month, the company will add a further three flights, taking its weekly total to 26, and work is under way to relocate its regional hub from the Philippines to the southern Chinese city of Guangzhou.

But while FedEx enjoys aerial supremacy in to and out of China, inside the country it faces a much tougher dogfight with its rivals DHL, UPS and TNT. FedEx’s need to strengthen its domestic capabilities explains why it agreed a Dollars 400m deal last month to take full control of its Chinese joint venture with Tianjin Datian W. Group.

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DHL sees no major growth in express business in UAE

Posted by | Feb 15, 2006 | |

DHL said yesterday it was not expecting significant growth in its core express delivery business in the UAE this year. The company delivers some 13,000 packages a day in the country and claims a 42 per cent market share in the express segment. “Growth in the express business is not going to be significant. But we are expecting overall growth in the UAE,” the company’s country manager David Wild told Gulf News. He said DHL’s road freight business is growing strongly in the UAE. DHL employs 500 people and operates 115 vehicles.

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Hungarian customers demand more complex delivery solutions

Posted by | Feb 13, 2006 | |

Though competition has intensified, the delivery volume of international parcel services has increased in recent years, industry experts said last week. Customers, however, are requiring complex, more sophisticated services, and service providers are expected to move to meet these requirements. “Though the core business is still small parcel delivery, no international delivery company can survive on the exclusive provision of traditional courier service-type solutions,” said Zoltán Bándli, business development manager at UPS Hungary Kft. According to Bándli, customers want more – something along the lines of a one-stop service.

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