Tag: DHL

Consolidation gains momentum in Europe’s Express and Parcels market

The latest findings to emerge from independent market analyst Datamonitor’s (DTM.L) “European Express Benchmarking 2004,” research reveals that the European* 34 billion Euro express market is consolidating. The top 6 players in the industry account for over 50% of these revenues compared to 2001, when they accounted for 44% of the market value and 47% of that in 2002. “The European express industry forms one of the fastest growing segments in the transportation business. Industry consolidation has continued apace as express and parcel delivery companies merge, make acquisitions and form strategic alliances in order to gain scale and enhance their capabilities. 2005 promises new opportunities for these companies with the expansion of the EU. Europe’s fast moving express industry proves difficult to keep track of and the players must be aware of competitors’ operations, changes within the industry and opportunities,” says Emilio Pedrinaci, courier and express analyst at Datamonitor.

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DHL goes for home run in rivals’ back yard

If there remained any doubt about DHL’s commitment to becoming a force in the US, it disappeared last week when the German-owned package delivery company struck a deal to sponsor Major League Baseball. Attaching its name to America’s “national pastime” is the most brazen sign to date of DHL’s ambitions to challenge United Parcel Service and FedEx on their home turf. DHL, part of Deutsche Post, said it had been adopted as an official partner of baseball’s top league for the next three years, raising the profile of a company that had until recently been largely absent from the US. The sponsorship is the latest in a series of initiatives by DHL to break the dominance of UPS and FedEx, which together command nearly 80 per cent of the US market.

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‘Any consignment, anywhere, any mode’ – Mr Chris Callen, Country Manager, DHL Express, India

A seasoned professional with over 25 years experience in the Express and Logistics industry, Mr Callen worked with many companies before joining New Zealand Post Ltd as Group Manager Distribution. He was a key member of the team that played a pioneering role in deregulating the postal market and developing the express and logistics industry in New Zealand. In 1998, he was made Chairman of joint venture airline Airpost Ltd. Mr Callen joined DHL in late 2002, and was recently elected Chairman of the Express Industry Council of India and is a Trustee of The American School of Bombay. Mr Callen spoke to Business Line about the Express industry, DHL, its new partners and its customers.

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GLS accuses DHL

The British post’s subsidiary GLS has accused DHL of practising price dumping in Germany. In an interview with the daily “Die Welt”, CEO Rico Back said the Deutsche Post parcel subsidiary would undercut GLS tariffs with discounts between 8 and 10% or 20 to 30 cent per parcel. DHL would guarantee customers the same price until 2007 and exclude any increase due to higher road toll or fuel costs. Mr Back called the practice “untrustworthy”.

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DHL awards Siemens contract for major parcel sorting systems in United States

DHL has awarded Siemens Logistics and Assembly Systems Inc., part of a USD160M contract for the integration and supply of conveying and sorting hardware. The agreement includes the provision of upper-level management software for implementation in DHL’s new letter and parcel sortation hubs. The hubs are located in Wilmington, Ohio; Allentown, Penn.; and Riverside, Calif. These facilities will serve both the air and ground parcel-sorting requirements of DHL as it continues to expand its growing customer base in the United States. Contract terms are undisclosed.

Installation will begin in May 2005 and the systems are expected to be fully operational by September 2006.

“This business partnership with Siemens provides us with the resources we need to fast-track the development of a state-of-the-art hub integration and automation system to improve service to our customers,” said Fred Beljaars, executive vice president for operations at DHL Americas.

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