Tag: FedEx

FedEx Truckload Brokerage moves into Canada

Posted by | May 5, 2008 | |

FedEx Truckload Brokerage, a subsidiary of FedEx Custom Critical, said today it has expanded its services into Canada.

A FedEx spokesperson told LM that since FedEx Truckload Brokerage launched last year, its customers “have been asking us to handle their Canadian shipments, so this was the natural next step for FedEx Truckload Brokerage.”

The biggest benefit of this Northern expansion for shippers, according to the spokesperson, is simply that they have a FedEx service for their truckload shipments to and from Canada.

FedEx Truckload Brokerage initially hit the market in a “soft launch” in January 2007, and it formally hit the market the following April. The service is focused on providing shippers with full-service truckload brokerage service offerings, ranging from regular, dry-van freight to oversized pieces that need flatbed trailers, according to FedEx Custom Critical. And it added that additional resources can be deployed for shipments that need temperature control functionality.

A little more than a year ago, the list of qualified carriers that meet FedEx’ requirements was comprised of more than 100 carriers. Today, the spokesman said, FedEx Truckload Brokerage works with 275 carriers, with approximately 10 percent of those carriers offering cross-border services between the U.S. and Canada.

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Battle of the Brands: UPS vs. FedEx

Posted by | May 5, 2008 | |

The largest player in the U.S. overnight package delivery business is attempting to increase its market share in the fast-delivery business next month. USPS is barely holding on to its 32 pct market share in the business, as FedEx and UPS continue to push the envelope at 31pct and 25pct market share, respectively. For the first time, shippers using Express Mail, Priority Mail, and several other parcel services will be able to get lower rates for large- and medium-volume contracts, according to the agency. Will UPS and FedEx need to cut their prices further to compete with the USPS?
Large Rate Increases For 2008
This year, FedEx and UPS announced that rates for ground packages would increase an average of 4.9pct on the ground and 6.9pct in the air (minus a 2pct cut in fuel surcharges, creating a 4.9pct increase in the air as well). So what does this mean for you? The key term we need to acknowledge is averages. Rates for certain packages will increase more than 4.9pct, while other shipments will increase less than 4.9pct , all depending on the characteristics of the package, the distance traveling as well as the service you use (ground or air).
Fuel Surcharges
If you’ve studied the fine print of the pricing that both FedEx and UPS use, the key is in the fuel surcharges. Don’t let the 2pct cut in air fuel surcharges trick you into thinking you’re saving, because you’re not. In a nutshell, carriers tack on a 0.5pct surcharge for every four cents of an increase in jet fuel prices — starting at the base price of $1.14 a gallon. With jet fuel prices up nearly 70pct since April of last year, you’re going to be paying more to for air delivery regardless of which company you use. For every eight cent increase in standard fuel prices, there is a 0.25pct jump in the fuel surcharge — starting at the base price of USD 1.50 a gallon. The price of gas has jumped nearly 50 cents over the past year, so going ground will also hurt your wallet.
The data clearly shows a significant increase from last year’s rates. But what really grinds my gears is that both FedEx and UPS have exactly the same rates for four out of six delivery services. So where can you find a cheaper overnight service?
A Possible Alternative
The fourth-largest overnight service is DHL, owned by Deutsche Post World Net AG, and holds a 9pct market share in the United States. In the same 2008 study, DHL’s prices to Huntington Beach were slightly cheaper than UPS and FedEx. Earlier this year, however, there were reports that DHL might leave the US shipping market due to considerable losses since 2004. One industry expert believes the U.S. shipping industry needs DHL to stay; fearing competitor prices would rise with DHL out of the picture.
The Bottom Line
With pricing so similar, choosing a delivery service really depends on who you can trust getting your product where it needs to be on time.

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FedEx and UPS eye U.S. slowdown

Posted by | May 1, 2008 | |

Package shipping giants FedEx Corp and United Parcel Service Inc are walking a narrow path between expanding their businesses overseas and scaling back in the United States, where the economy has slumped.

But industry analysts say the two rivals should be able to weather a short-term slowdown without hefty drops in profits, with only a prolonged U.S. downturn presenting a serious threat.

Recessions push companies and individuals to rein in expenses, which includes package shipping. But revenues are not the only wild card for UPS or FedEx profits. The record surge in fuel prices for trucks and airplanes is another.

Like many U.S. transport companies, UPS and FedEx have been routinely passing on higher fuel costs to customers. But in a recession, such surcharges are just one more reason for customers to cut shipments.

Rising fuel costs also present big challenges to the shippers just in managing cash flows and hedging.

While Graf says FedEx has leeway in allocating its capital expenditures, growing markets like China remain a priority.

FedEx’s total capex spending should be about USD 3 billion for the fiscal year beginning on June 1, he said.

As part of its expansion plans, FedEx will open a new air hub in Guangzhou, China, in 2009.

At UPS, overseas spending that includes the booming China market will also remain core to its strategy in 2008 and 2009.

UPS’s new airport hub in Shanghai will open this year.

In their latest quarters, net profit declined 12 percent at UPS and fell 7 percent at FedEx. Both cited the sluggish state of the U.S. economy and high fuel costs.

Both companies still derive about three-quarters of their business from the United States, said Morningstar analyst Keith Schoonmaker.

The good news, highlighted by both, was growth in international package shipments, including a boost from rising U.S. exports on the back of the weak U.S. dollar.

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UPS appoints two key posts in Europe

Posted by | Apr 30, 2008 | |

Romaine Seguin, a 25-year veteran of UPS who has been leading the company’s South Europe District, has been promoted to Vice President of Operations for UPS’s entire Europe Region. In her new role, Seguin will be responsible for small package operations in 47 countries and territories throughout Europe, the Middle East and Africa.

Cindy Miller, a 20-year veteran of UPS who headed the Metro Chicago District, has been named Vice President of Operations for the company’s South Europe District. In her new role, Miller will be responsible for small package operations throughout Italy, Spain, Portugal, Greece, Bulgaria, Romania, the Balkans, the Middle East and Africa.

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Deutsche Post up on talk of FedEx interest: traders

Posted by | Apr 28, 2008 | |

Shares in Deutsche Post rose on Monday as traders cited market talk that U.S. package delivery company FedEx Corp was interested in buying a stake in the German mail and logistics group.

“There are rumors that FedEx wants to buy a 14-percent stake in Deutsche Post,” one trader said.

Deutsche Post had no immediate comment.

Deutsche Post shares were up 1.5 percent at 20.40 euro by 6:34 a.m. EDT, while Germany’s top-30 index .GDAXI was up 0.9 percent.

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