Tag: Domestic

Fedex Ground says drivers are independent

Posted by | Oct 23, 2008 | |

Shipping company FedEx Ground repeated its claim that its drivers were independent contractors after the U.S. government dropped a large tax claim against it.
The Internal Revenue Service withdrew a USD 319 million tax claim against FedEx Ground Wednesday, the Memphis, Tenn., Commercial-Appeal reported.
The company said it was “pleased” with the decision, which was based on the 2002 tax year and included possible interest penalties on top of the base sum of USD 319 million.
“We continue to believe that FedEx Ground’s owner-operators are independent contractors and that no loss is probable in this matter,” company spokesman Maury Lane said.
“This is huge,” said industry analyst Art Hatfield of Morgan Keegan.
“Basically the federal government is saying these people are not employees. I think it’s very substantial for the government to come out and say, ‘We’re withdrawing this.'”
“It’s an admission their premise was wrong,” Hatfield said.

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TNT sets up new gateway at Osaka Kansai International Airport

Posted by | Oct 23, 2008 | |

TNT announced the opening of its new International Gateway at Japan’s Osaka Kansai International Airport. The TNT International Gateway in Osaka Kansai will not only strengthen the express service capability of TNT’s Northeast Asian International Express Network, it will also shorten the transit time for deliveries into Osaka, from China by one day.
TNT customers will now be able to enjoy the one-stop comprehensive express delivery service between China and Osaka, one of Japan’s key manufacturing hubs, in the shortest possible time. Consignments, leaving Shanghai and other Chinese coastal cities, can now be delivered directly to Osaka Kansai. This time saving is crucial for TNT customers mainly in the electronics and apparel/ textile industries, where time critical deliveries remain one of its most important competitive advantages.
At the same time, Vietnam which has been poised as one of Asia’s key manufacturing economies and is one of the fastest growing exporting countries to Japan in Asia, will also benefit from the shortened transit times to Osaka Kansai.

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Post-Switch – Royal Mail most inefficient operator in Europe

Posted by | Oct 23, 2008 | |

Post-Switch says that Royal Mail has failed to react to the commercial world, describing it as one of the most inefficient operators in Europe.
Jonathan DeCarteret, Senior Market Analyst at Post-Switch, says that Royal Mail, under threat from competition, a ballooning pension deficit, shackled to a trade union and a conspicuous lack of innovation has put the USO (universal service obligation) in financial deficit and under threat.

“Royal Mail is one of the most inefficient operators in Europe and there is an urgent need to modernise, streamline, cut costs and compete on customer service. There is a general consensus that Royal Mail has failed to shake off a culture of complacency that reigned under monopoly protection and there is a real need for a culture of change that is about customer obsession and innovation. Royal Mail need the commercial talent to create new revenue streams and take advantage of a liberalised European postal market.” he said.

His remarks follow the announcement by Royal Mail this week that the pension deficit has grown and the universal service is now seriously in the red. The Hooper review, to be released imminently, is expected to recommend a radical shake-up of the Royal Mail, including part privatisation of the delivery network.

In a closed door speech on the Independent Review of the Postal Services Sector, Richard Hooper stated that “The situation in the postal services sector in the UK is and remains untenable”.

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Royal Mail: Half year trading statement 2008-09 (UK)

Posted by | Oct 23, 2008 | |

Royal Mail Group’s operating profit more than doubled from GBP 86 million to GBP 177 million in the first half of the 2008-09 financial year compared to the same period the previous year despite a further fall in mail volumes, the company announced today.

The strong financial performance came alongside a rise in customer quality of service with the most recent figures showing the vast bulk of mail hitting or exceeding its targets.

Operating profit grew by GBP 91 million in the first half of the year compared to the same period last year. The company’s continued focus on reducing overheads as competitive and economic pressures mount played a significant role in the financial uplift with reductions in IT and other costs in the Post Office network and efficiency gains in the Royal Mail Letters business.

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Business Post grabs Amtrak contracts

Posted by | Oct 22, 2008 | |

Business Post chief executive Guy Buswell has revealed that its UK Mail division has picked up contracts following the demise of business-to-consumer parcel carrier Amtrak in the summer. “We got in touch with Amtrak’s administrators and offered to move the stranded parcels in the network,” says Buswell.
“We then agreed sight of the customer database, which gave us a jump-start on the competition. We did not buy any Amtrak assets – just its customer list.” Buswell says although UK Mail picked up business as a result of this move, other carriers, such as Parcelforce and DHL, also gained customers.
Parcelforce confirmed it has picked up a Kleeneze contract. DHL declined to comment. Meanwhile, Buswell says a name change is in the offing. “We’ve been thinking about changing the group name to UK Mail Group. We’ll probably decide on it in the new year, then go to shareholders next summer to be voted on at our AGM,” he adds.

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