Tag: Europe

Linehaul UK Ltd joins the Fortec team

Linehaul UK Ltd started operation in 2001 and joined Fortec in January 2007 and is responsible for palletized collection and delivery in the RH and TN area postcodes

Hanson Masih, Sales and Marketing Director, Linehaul UK Ltd, commented: “Our decision to become a member of the Fortec Pallet Distribution Network was reached following an audit of a number of networks. We were attracted to Fortec for several reasons including it’s extensive reach offered throughout the UK and Internationally through it’s parent company Geodis; the solid operations infrastructure; and feedback from established members. Overall Fortec has ticked all the boxes in terms of what we were looking for in our search for a partner”.

“In a short space of time, we have developed a close working relationship with Fortec and their ‘seasoned’ management and operations team have proved supportive in ensuring that a smooth start-up took take place”.

Hanson added “Looking towards the future, our aspiration at Linehaul is to grow the business profitably and sensibly – we see Fortec as an integral part of this strategy.”

With a dedicated team of 30 drivers and administration staff and a similar number of vehicles, Linehaul is now able to provide through Fortec, a nationwide and International palletised distribution service offering.

Welcoming Linehaul to the network Rod Abrahams Fortec’s Managing Director said “We are very pleased to welcome Linehaul into Fortec – they are joining at a very important time in the development of the Fortec network as we move to a new hub. I am confident they will settle quickly into the Fortec ‘family’ and become a very successful licensee”.

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Postal Logistics is the first to earn USPS OK to co-palletize

Postal Logistics Services LLC earlier this year became the first company certified by the US Postal Service to co-palletize mailings of Standard mail letter-size pieces in trays received from authorized mail preparers.

Co-palletization consolidates physical bundles of mail from multiple companies and ZIP codes that have already been addressed and presorted onto pallets. These pallets can then be shipped to the USPS’s 454 Sectional Center Facilities, which are processing and distribution centers that serve a designated geographical area defined by one or more three-digit ZIP code prefixes.

When mail is dropped off at one of these facilities, it is closer to the home where it is being delivered to. This process saves the USPS handling costs. As a result, mailers, especially smaller mailers, can receive Sectional Center Facility (SCF) discounts.

“We take those runs — 30,000, 40,000, or 50,000-run mailings — and give them an opportunity to garner some of the postal savings in drop shipments that they don’t have today,” said Tom Taylor, managing partner of Postal Logistics.

“They will also have a quicker in-home date,” Taylor explained. “The average in-home date through a local drop is 14 to 21 days. Through our system, it will be seven to 10 days.”

Co-palletization of mail also generates increased savings by enabling shipments of Standard mail to be assembled on full pallets as opposed to mail sacks, which are more expensive for the USPS to process.

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Start of Royal Mail strike looms

A two-week campaign of staggered strike action throughout Royal Mail is set to begin at 1900 BST.

Each division within the firm has been allocated a different day to strike, in a move designed to cause continuous disruption throughout the period.

Union members are protesting over pay and job losses which they say will come from the modernization of the firm.

Royal Mail says the changes are needed for it to stay competitive and vowed to keep delivering mail during the action.

The first action will see staff at Post Offices and Royal Mail sorting offices walk out in a 24-hour strike.

Royal Mail called the Communication Workers Union’s (CWU) decision “hugely disappointing”, but said it could not change its position. It also said it would have contingency arrangements in place.

The strikes will see each section of the company, from the sorting and collection centers to those who make the deliveries, walking out for two separate 24-hour strikes over two weeks.

The move is designed to cause continuous disruption to the nation’s postal service throughout the period at a “minimum cost” to CWU members, union officials say.

The union says the action reflects its growing frustration with the Royal Mail for its failure to take worker demands for job protection and increased pay “seriously”.

The CWU fears 40,000 jobs will go as a result of increased mechanizations of the system. It is also objecting to a 2.5 pct pay offer.

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EC gets tough on Royal Mail's VAT exemption

Royal Mail, reeling from a series of strikes by postal workers over pay and working practices, suffered a fresh blow on Tuesday when the European commission stepped up its threat to take the government to court over its decision to exempt all the former monopoly operator’s services from VAT.

Laszlo Kovacs, EU tax and customs commissioner, formally requested the government to amend UK legislation allowing Royal Mail to charge zero VAT on high-value bulk mail and commercial deliveries for which rivals must pay the standard rate of 17.5 pct..

The zero rate applied to stamps for normal deliveries to more than 20m British homes under the “universal service obligation” (USO) — guaranteeing one delivery a day, six days a week, to every address in the UK for the same price — would be unaffected.

The commission’s move is the second stage in the infringement procedure and could lead it to take Britain to the European court of justice, Europe’s highest court. UK laws on exemption for all Royal Mail’s services are deemed incompatible with the sixth VAT directive.

The government showed little sign of giving way to Brussels on the issue. “We are satisfied that our position is consistent with the EU VAT rules in this area, which require VAT exemption for services provided by the ‘public postal services’,” a Treasury spokesman said.

Royal Mail said it remained opposed to the imposition of VAT on its postal charges. “While the issue of VAT is a matter for the UK government, we have said that an increase in prices as a result of the imposition of VAT is the last thing we want for any of our customers, particularly charities and small businesses.”

A spokesperson for TNT Post, one of Royal Mail’s rivals, said: “This action supports our view that the VAT distortion needs to be removed.”

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Tan moving up at DHL Express

Dennis Tan, chief financial officer of DHL Express Singapore, has been appointed senior vice-president and head of global express controlling at DHL Express.

He will report to Oliver Gritz, CFO of DHL Express, and his areas of responsibility include financial reporting and planning, costing and transfer pricing, IT controlling as well as the newly created positions for marketing and sales controlling and ground operations controlling.

Tan has been instrumental in managing and leading various key projects such as the integration of financial reporting systems in the region, as well as the implementation of the new regional business planning software.

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