Tag: FedEx

USPS stats put FedEx & UPS at risk

Posted by | Aug 28, 2008 | |

The number of parcels and packages that postal workers are toting around the country has declined sharply, according to government statistics, opening the prospect of fresh liabilities for the U.S. Postal Service’s private-enterprise rivals, analysts said.

According to the data, challenging economic conditions, the end of stimulus checks, and inflation in fuel prices have contributed to a pronounced sell off in package deliveries. Express mail shipments fell 14 pct in the quarter that ended in June, the most recent data available. Priority mail shipments declined 6 pct in the period. The pullback could have direct implications for FedEx, which has made as much as USD1.2 billion a year flying priority mail packages for the USPS. But there are threats to the franchises of FedEx as well as United Parcel Service (UPS) simply from industry pressures. The USPS data suggested that package shippers have gotten more cost-conscious about their shipping activities. FedEx’s May quarter showed that daily domestic air freight declined about 15 pct, including its priority shipping business. Nevertheless, both FedEx and UPS have ticked up about 1 pct in Wednesday’s trading (27th August).

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FedEx launches domestic service in Mexico

Posted by | Aug 27, 2008 | |

FedEx Express announced the introduction of FedEx Express Nacional, a domestic next-business-day service that provides highly reliable, convenient and quality express shipping solutions across Mexico. This follows the Company’s domestic service launches in China, India and the UK, and is the first FedEx domestic service offering in Latin America.
FedEx Express Nacional begins operations on Oct. 6, 2008. The service features delivery to any address in Mexico, online tracking and tracing, and is backed by the FedEx money-back guarantee(a). It includes:
• FedEx Express Nacional 10:30 AM (FedEx Priority Overnight): Next-business-day delivery in Mexico for documents and parcels weighing up to 68 kg, by 10:30 a.m.
• FedEx Express Nacional Día Siguiente (FedEx Standard Overnight): Next-business-day delivery by the end of the business day. Also for packages weighing up to 68 kg.
As part of the broad FedEx portfolio of shipping solutions, FedEx Express Nacional offers customers in Mexico the convenience of working with a single provider for both their domestic and international shipping needs. This service expansion builds on the success of FedEx domestic service offerings in key markets such as China, India and the UK.

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Chinese courier companies face FedEx threat

Posted by | Aug 26, 2008 | |

China’s express delivery market has been undergoing unprecedented change since FedEx began reducing its prices early this year.

The price reduction is a clear sign that FedEx is seeking to enlarge its share of China’s domestic express delivery market, which has seen growth rates rise by 30 percent this year with the increase in e-business and online shopping in the country.

Such low prices will take clients away from local express companies, and worsen what has already been a tough situation for them this year, the report said. In 2008, most domestic private-owned express companies have been reporting deficits due to the rising prices of fuel and labor. Some have even been forced to close.

FedEx applied the same strategy in countries such as Mexico and Egypt and successfully drove local express companies out of business. But after it took control of the market, FedEx raised prices back to their previous levels. Now China is facing the same threat, the article says.

But the local companies are fighting back, and they believe there is a considerable market space that international express giants cannot take away. For instance, they still provide cheaper services for shipments within a radius of 500 kilometers, and as long as they survive the current hard times, they will reclaim their share of the market – mainly in short-distance shipments with small business clients, Qianjiang Evening News reported in July.

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FedEx launches capital plan

Posted by | Aug 25, 2008 | |

Having a regional express hub just 20 miles outside the nation’s capital wasn’t quite close enough for FedEx Express.

With postal business now in the mix and a new plane in the fleet, FedEx launched 757 freighter operations into Ronald Reagan Washington National Airport this month. The flight gives the tightly packed airport, located just across the Potomac River from downtown Washington, a rare entry into the all-cargo arena, and it gives the carrier the sort of quick reach to business and government offices that makes DCA a bustling passenger site.

The eight-times-weekly flight will operate just a one-hour truck haul from Washington Dulles International Airport, where FedEx has a full-service sort center and has operated narrowbody and widebody flights for several years at facilities next door to UPS and DHL.

The service also marks the “introduction of the 757 freighter to our fleet,” said David J. Bronczek, chief executive officer of FedEx Express. The company expects to introduce 12 757s into revenue service over the next year.

As the replacement for the 727, the 757 offers fuel savings of up to 36 percent over the older three-engine 727, while providing far more capacity per flight. The 757 also is significantly quieter than the 727.

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TNT hits highest in six months after UPS bid report

Posted by | Aug 22, 2008 | |

TNT NV rose to the highest in almost six months in Amsterdam on a report that United Parcel Service Inc. may bid for the Dutch company as soon as this weekend.

Hoofddorp, Netherlands-based TNT gained 1.70 euros, or 6.9 percent, to 26.45 euros, the highest since Feb. 28. That values the company at 9.7 billion euros (USD 14.4 billion).

UPS and TNT may meet to work out a deal over the weekend, with the U.S. company offering 34 euros to 38 euros a share, U.K. newspaper the Times reported, without citing anyone. TNT surged 26 percent on July 14, its biggest jump since first selling shares to the public in 1998, after the Financial Times reported that FedEx Corp., the second-biggest U.S. package- shipping company, was in talks to buy its Dutch rival.

“If UPS started calculating and put together a team when FedEx rumors emerged in July, they should be ready to make a bid by now,” said Thijs Berkelder, an analyst at Petercam in Amsterdam, in a telephone interview. He said TNT may be worth about 40 euros a share in a takeover bid.

TNT declined to comment on “rumors and speculation,” spokesman Cyrille Gibot said today by telephone.

“UPS will never comment on rumors or speculation about mergers and acquisitions,” said Norman Black, a spokesman for the Atlanta-based company.

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