Tag: Domestic

Royal Mail's request to waive the Redelivery local collect charge during December 2008 (UK)

Posted by | Oct 7, 2008 | |

Royal Mail has asked Postcomm for a temporary exemption which would waive the 50p Redelivery local collect charge during December 2008.
Postcomm published a consultation letter which seeks stakeholders’ views on Royal Mail’s request, and stakeholders are invited to respond to the letter by 7 November 2008. We expect to make a decision in early November 2008.
On 26 September 2008, Royal Mail applied for a Direction from Postcomm for exemption from the three month notification period required by Condition 7 for it to waive the 50p Redelivery Local Collect charge during December 2008. It proposed to make this change available to all recipients of items that have not been delivered on the first attempt.

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Deutsche Post: New Head of Corporate Communications in March 2009

Posted by | Oct 7, 2008 | |

Christof Ehrhart (42), currently Head of Global Corporate Communications for the European Aeronautic Defence und Space Company (EADS), will become the Head of Corporate Communications at Deutsche Post World Net as of March 1, 2009. He thus succeeds Manfred Harnischfeger (64), who will leave the company to retire as of June 30, 2009, pursuant to contract. Harnischfeger will remain in contact with Deutsche Post World Net as a consultant.
In his new position, Ehrhart will be in charge of Group-wide internal and external communications, corporate sponsoring and worldwide brand management for Deutsche Post World Net. He will report directly to the Chairman of the Board of Management, Frank Appel.

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CitySprint takes over PBS Deliveries

Posted by | Oct 6, 2008 | |

CitySprint has today (6th October 2008) acquired Birmingham based courier company PBS Deliveries for an undisclosed sum. This deal expands its unique wholly owned national network whilst further strengthening its established Midlands operations.
CitySprint, with 31 locations, a fleet of over 1500 couriers and is the only national courier that provides its customers with live, real time online tracking of their shipments in progress.
Despite the current economic turmoil CitySprint is continuing with its successful strategy for growth by focussing on organic expansion and strategic add-on acquisitions. CitySprint is determined to use this strategy to maintain its strong foothold in the industry and to continue to grow its market share.
CitySprint believes that by further strengthening its capacity in the UK, and therefore its ability to support its customers, it will be able weather the economic storm as clients look towards a stable and reliable provider.
PBS customers will now benefit from access to considerably enhanced OnLine services. CitySprint operates the largest GPS enabled fleet in Europe which means that its customers benefit from real-time information at the touch of a button. CitySprint has taken the bold step of offering complete transparency to its customers about the courier services they use. From the point of booking CitySprint’s customers can view, through CitySprint’s CourierLocator facility on their website, a real time map location of the courier doing their SameDay Courier delivery and a step by step job progress audit and electronic proof of delivery through QuikTrak.

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DHL 'Mistakes' Make USD 3B Loss Unsustainable

Posted by | Oct 5, 2008 | |

Addressing the U.S. House of Representatives Committee on the Judiciary, DHL CEO John Mullen cited constraints on foreign investment in U.S. airlines as a reason for the express operator’s USD 3 billion losses since 2003.

Currently, U.S. law limits foreign ownership of American air carriers to a 49 pct equity interest and a 25 pct voting interest and with DHL losing USD 5 million a day Mullen said the situation had become “unsustainable.”

In an attempt to integrate the unusual structure of DHL – U.S. ownership of the domestic lift and foreign control of the international operations – Deutsche Post World Net (DPWN) acquired DHL International in 2002 and Airborne Express in 2003.

In order to comply with U.S. law, DHL was then required to divest itself of Airborne’s air operations (ABX), leaving DHL Express to operate ground operations only in the U.S.

So while it may have been one brand, the new DHL has remained several distinct components – including air capacity provided by ABX and ASTAR. Mullen acknowledges that the inability to control its U.S. capacity has resulted in a “substantial cost disadvantage” compared to FedEx and UPS.

In the five years since acquiring Airborne, DHL has invested USD 0.9 billion in its Wilmington, Ohio hub in order to integrate the ground operations of the former DHL and Airborne into a single air express provider.

So when UPS came calling with a more cost-effective solution to DHL’s domestic lift, Mullen and DPWN CEO Frank Appel decided to call “time” on the Wilmington hub operation and its capacity contracts with ABX and ASTAR.

However Mullen denied as “false” claims that DHL is abandoning its Wilmington Air Park facility after accepting more than USD 400 million in incentive benefits from the State of Ohio: “DHL was induced to consolidate operations at the Air Park, rather than in Northern Kentucky, in part by the offer of incentives that the State has valued in excess of $400 million.

DHL says it will provide more than USD 260 million in severance, retention, and health benefits for the workforce in Wilmington, including funding the severance and benefits programs of the ABX and ASTAR Employees.

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Parcel shipping: Domestic problems persist for DHL Express USA

Posted by | Oct 3, 2008 | |

DHL Express USA has terminated roughly 80-to-90 percent—or hundreds—of its domestic sales force staffers, LM has learned.

According to an industry source, DHL Express USA will retain somewhere between 80-to-150 U.S.-based sales staff that will now be referred to as “international” sales representatives.

The UPS-DHL contract was originally expected to be finalized by August; industry analysts are suggesting it may take at least another two months.

While market conditions remain challenging for DHL Express USA, the industry source said it is by no means certain that it will exit domestic ground operations.

But a research report by Robert W. Baird transportation analyst Jon A. Langenfeld said that, according to industry contacts, deteriorating conditions could force DHL to more drastically eliminate its U.S. domestic parcel operations.

And Morgan Stanley analyst William Greene wrote in a research note that due to anecdotal reports of extremely large volume declines at DHL it is becoming more difficult to see how DHL can deliver USD 1 billion in annual air revenue to UPS should the deal go through.

Greene wrote that prospects of this deal being consummated are becoming doubtful, adding that DHL’s customers appear to be leaving at a rapid pace, coupled with the fact that the House anti-trust and competitive issue-related hearings could also spike the deal.

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