Tag: FedEx

ShipGooder takes shipping to the next dimension

Posted by | Mar 26, 2008 | |

It’s an old question with an interesting twist: Which costs more to ship – a pound of bricks or a pound of feathers? The answer: It depends on the size of the box.

Couriers use package dimensions to determine the “dimensional weight” of a shipment. Large packages cost couriers more to ship than smaller packages. Couriers charge this higher cost to their shipping customers. For example, if a square box measures 24 inches on each side, the U.S. Postal Service, FedEx UPS and DHL count the weight of the box as 72 pounds, even if the box and its contents weigh only 25 pounds.

ShipGooder.com, the market leader for providing courier rate searches across multiple carriers, today announced the launch of a new dimensional weight feature. In addition, ShipGooder.com announced a new function to allow visitors to specify a residential destination for their shipments.

Visitors to ShipGooder.com simply enter their shipping origin and destination zip codes, along with the dimensions and weight of their shipment. Package dimensions can be input when visitors click on the “advanced options” link on the homepage. ShipGooder automatically determines the dimensional weight of the package to calculate the ultimate shipping weight that couriers will charge. Current rates from the U.S. Postal Service, FedEx, UPS and DHL are instantly displayed in a simple table along with rates from local and regional carriers.

Once the rates are displayed, ShipGooder’s AJAX technology allows visitors to change any shipping parameter, such as the package weight or destination zip code to see updates to the rates in real-time. Additionally, the free website does not require visitors to register any personal information, and does not clutter its pages with distracting ads.

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Express operators step up Latin America investment

Posted by | Mar 25, 2008 | |

Leading international and domestic express companies in Latin America have announced investment plans in recent weeks to build up their networks and add new services. Mexico and Brazil are the focus of investment.

DHL Express will invest about USD 112 million (EUR 72 million) in Mexico over the next five years (2008-2012) in new hubs, gateways, the domestic air network, the ground fleet, IT systems and other measures, DHL Mexico director general Luis Eraña told local newspapers.

Estafeta, one of the leading private operators in Mexico, will invest about USD 30 million (EUR 19.2 million) this year to expand its network, director general José Antonio Armendáriz told local media. The bulk will go on a runway extension at its hub at San Luis Potosí in central Mexico that will enable international flight operations. The operator also plans to add three small cargo planes to supplement its existing five B737Fs, and build new centres in Toluca, Morelia, Leon and Guadalajara.

In Brazil, private express company Rapidao Cometa announced earlier this month it will invest RUSD 32 million (EUR 11.8 million) in a 65,000 sqm new logistics centre in São Paulo to triple handling capacity there. The centre, due to open in the second half of the year, will act as a base for the company, whose businesses is mostly generated in northern Brazil, to expand in the south and south-east of the country. “In terms of business distribution by region, the company’s activities are disproportioned,” commented commercial director Américo Pereira Filho.

Brazilian express operator Mercúrio, owned by TNT Express, already announced at the start of the year that it will buy 100 trucks this year to expand its fleet, and will open new hubs at Rio de Janeiro, Fortaleza and Recife this year.

Meanwhile, Brazil Post has played down recent reports it might buy Variglog, the troubled Brazilian cargo airline, in order to build up a domestic air cargo operation instead of relying on commercial capacity. Describing Variglog as an “option”, its president Carlos Henrique Custódio told the newspaper Gazeta Mercantil that Brazil Post is also talking with four smaller airlines about “a new formation” to help its business.

Elsewhere in Latin America, TNT Express has started offering a new air service between Buenos Aires and Montevideo, connecting the two capitals each working day of the week. In Peru, Grupo Scharff, the local FedEx partner company, aims to broaden its portfolio by offering more FedEx products in the second half of this year. The company increased revenues 20% to USD 13 million last year from its FedEx-branded services, according to the El Comercio newspaper.

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FedEx Corp. reports Third Quarter Earnings

Posted by | Mar 20, 2008 | |

FedEx Corp. today reported earnings of USD 1.26 per diluted share for the third quarter ended February 29, compared to USD 1.35 per diluted share a year ago. Last year’s third quarter included an USD 0.08 per diluted share benefit from a reduction in the company’s effective tax rate.

FedEx Corp. reported the following consolidated results for the third quarter:
Revenue of USD 9.44 billion, up 10% from USD 8.59 billion the previous year. Operating income of USD 641 million, unchanged from a year ago. Operating margin of 6.8%, down from 7.5% the previous year. Net income of USD 393 million, down 6% from last year’s USD 420 million. Total combined average daily package volume in the FedEx Express and FedEx Ground segments grew 5% year over year for the quarter, due primarily to growth at FedEx Ground, FedEx International Priority® (IP) and an increase in international domestic express shipments resulting primarily from recent international acquisitions.

Third quarter operating margins declined, as higher fuel prices and a weak U.S. economy limited demand for U.S. domestic express, less-than-truckload (LTL) and copy and print services. The costs of retail service enhancement initiatives, increased marketing and technology expenses and higher expenses at FedEx Ground more than offset the benefits from lower variable compensation and favorable exchange rates.

For the third quarter, the FedEx Express segment reported: Revenue of USD 6.13 billion, up 11% from last year’s USD 5.52 billion. Operating income of USD 425 million, up 8% from USD 395 million a year ago. Operating margin of 6.9%, down from 7.2% the previous year . IP package revenue grew 18% for the quarter, as IP revenue per package grew 10%, primarily due to higher fuel surcharges and favorable exchange rates. IP average daily package volume grew 6%, led by increases in volume originating in Latin America, the United States and Asia. U.S. domestic revenue per package increased 6% due to increased fuel surcharges and higher rate per pound, while package volume declined by 2%.

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Should TNT stay in Germany or should it go?

Posted by | Mar 20, 2008 | |

Dutch mail and logistics company TNT NV has more to gain by staying in Germany despite competitive snags as buoyant growth prospects will make up for a shrinking business at home in the Netherlands.

Europe’s second-biggest mail and logistics company by market value, TNT is expected to lose its remaining monopoly in its lucrative domestic market this year, with competitors already eating into its market share and profitability.

It is seeking to reinforce its German operations but has threatened to pull out of the country due to what it sees as preferential treatment for Deutsche Post.

Earlier this month, a German court ruled in TNT’s favour in a case it brought against a minimum wage for postal workers, allowing it to continue paying its lower wage.

Europe’s largest economy introduced a minimum wage of up to 9.80 euros (USD 15.15) per hour for its roughly 220,000 postal workers in January.

The German government said it would appeal against the court ruling, and a verdict could take months, however.

That appeal is hanging over the company and the German postal sector like a sword of Damocles, Dutch daily De Telegraaf quoted Mario Frusch, the chief executive of TNT Post Germany, as saying on Thursday.

He said the company has put its investments in Germany on hold for the time being. TNT Chief Executive Peter Bakker told Reuters in December the company had frozen its investments due to the minimum wage issue.

But TNT needs to take a long-term view of the German mail market, one of the big three in Europe, as it has the potential to drive future growth and offset Dutch losses.

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Over USD 17 million wasted on FedEx planes

Posted by | Mar 14, 2008 | |

U.S. Postal Service facilities in California and three other Western states incurred USD 17.8 million (U.S.) in unnecessary costs by using FedEx Corp. aircraft to ship mail that could have been moved by truck, rail or passenger plane, auditors found.

The post offices, which account for 14 per cent of all U.S. mail volume, also paid FedEx to sort mail when they could have done so themselves or prepared the mail properly before giving it to FedEx.

Facilities in these states, including Arizona, Nevada and Hawaii, could save the Postal Service about USD 45 million over the next 10 years by minimizing use of FedEx planes and services, said the Feb. 19 report displayed this week on the agency’s website.

The report’s findings come as the Postal Service, a government agency required by law to set rates to cover costs, tries to cope with a possible USD 2 billion loss this year after a USD 5.1 billion deficit last year.

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