Tag: FedEx

UPS hopes China ads deliver

Posted by | Aug 11, 2008 | |

UPS may spend as much as USD 60 million this time on Olympics-related activities from ads to hospitality, says Jim Andrews, Editorial Director of the IEG Sponsorship Report.

For UPS, making a good impression during the Games is crucial. The company believes China’s appetite for American products will grow exponentially in coming years, driving the market for deliveries across the Pacific and within Asia. In 2006, it conducted a survey of what it identified as 1,200 “middle-class consumers” in six Chinese cities. The findings suggested growing demand for U.S. products ranging from beauty products to DVDs.

In China, UPS is competing fiercely with FedEx Corp.UPS has had to play catch-up since 1995, when FedEx acquired what were the only existing rights to make all-cargo flights directly to China from the U.S. In 2005, FedEx also became the first express carrier with a direct flight from mainland China to Europe.

Before 2004, the Chinese government permitted 20 cargo-only flights a week by American companies between the U.S. and China. But that is scheduled to increase to 131 flights a week by 2010 as China eases its restrictions, according to Robert Dahl, Project Manager of Air Cargo Management Group, a Seattle-based aviation consulting firm.

FedEx and UPS, which each have about 6,000 workers in the country, are building new airport hubs in China that are set to open later this year — UPS’s in Shanghai and FedEx’s in Guangzhou. UPS is also competing against DHL and TNT.

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TNT NV 'deal' could trigger antitrust review for UPS

Posted by | Aug 11, 2008 | |

United Parcel Service Inc. (UPS) would likely face antitrust scrutiny on both sides of the Atlantic if its reported interest in Dutch rival TNT NV turns into a fully-fledged deal.

TNT shares rose on weekend media reports of renewed interest from UPS which, like smaller U.S. rival FedEx Corp., has courted the logistics and mail specialist several times in recent years.

Both U.S. companies prize TNT’s express delivery business in Europe and expanding Asian presence to counter a slowdown in their domestic activities.

Adding the 8 pct share of the European Union express delivery market held by UPS to the sector-leading 17 pct held by TNT would reach a level that normally triggers interest from competition officials at the European Commission. FedEx has a market share of just 2 pct in the EU.

Interest from the U.S. rivals has in the past faltered on valuation and the future of TNT’s domestic-focused mail division, which accounted for EUR4.3 billion of its EUR11.5 billion group sales last year.

Scott Davis, UPS chief executive, last month declined comment on any specific interest in TNT, though his remarks on its acquisition priorities indicate the Dutch group remains a potential fit.

TNT Chief Executive Peter Bakker said last month that the company could continue its independent strategy, but UPS was linked with the Dutch group again at the weekend. A report in the London-based Sunday Telegraph that said both sides had hired advisers.
Its shares later declined Monday after a UPS executive told Reuters any deal would hit the U.S. group’s valuation. However, the company said the executive was “misquoted”, and called for a correction.

UPS and TNT both declined official comment on the speculation.

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UPS dismisses TNT bid interest, TNT shares fall

Posted by | Aug 11, 2008 | |

A senior executive of United Parcel Service on Monday dismissed talk of a USD 15 billion takeover bid for Dutch rival TNT as a ‘rumour’, saying an acquisition would devalue its own shares.

The comments pushed TNT shares down by nearly 10 percent on Monday, erasing earlier gains posted after a source familiar with the talks told Reuters the U.S. company was in the early stage of discussions with Europe’s number 2 mail and logistics group.

‘That rumour again?’ Dan Brutto, president of the company’s international business, told Reuters in an interview.

‘I look at that (TNT share price) and said, ‘someone says we’re going to buy something that devalues our shares too at the same time’,’ he said, adding however that acquisitions were not something he oversaw directly.

‘But we always look at different things and try to fit (them) into the puzzle.’ He said UPS hoped to make some Chinese acquisitions.

Earlier on Monday, shares in Europe’s number 2 mail and logistics company gained more than 6 percent after a source told Reuters on Sunday that UPS was in the early stage of discussions with TNT.

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Multi-carrier certified shipping solution

Posted by | Aug 10, 2008 | |

OutBound Shipping System, a provider of automated carrier certified shipping software and solutions, has now integrated the U.S. Postal Service (USPS) Global Shipping Solution (GSS) interface into its enterprise shipping software. This integration allows customers to access the easiest method for shipping international USPS parcels. The software streamlines the oftentimes difficult process of generating the correct paperwork for international shipping with USPS. The module can accomplish this by capturing the required information for international shipping, including product codes, value, and requirements of the destination country.

OutBound Shipping System’s multi-carrier certified shipping solution now encompasses USPS, FedEx, DHL, and UPS products and services, and also has a less-than-truckload (LTL) module. The latest edition also features increased application functionality in addition to the integration with USPS.

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