Tag: FedEx

DHL initiative makes it No. 1 courier in China

Posted by | Oct 21, 2007 | |

Since the 1990s, China’s international courier market has gradually been taken over by the four international giants — DHL, TNT, UPS and FedEx, which have been growing by more than 20 percent to 40 percent per annum. EMS, the courier service by China Post, has been declining by 4 percent year-on-year.

The domestic courier market has a lot of potential. According to World Trade Organization (WTO) requirements, the Chinese courier market had to be fully opened up to competition by the end of 2005. But in most regions, especially central cities such as Beijing and Shanghai, private courier companies command 80 percent of market share.

Today, if one calls the customer-service departments of FedEx, UPS, DHL and TNT to courier documents from Guangzhou or Shanghai to Beijing, UPS would respond that it only serves clients with whom it has contracts; FedEx, DHL and TNT would take the business, but the quote would be more than 100 RMB from FedEx and DHL; TNT emphasizes medium-to-high end clients and would actively persuade the customer to sign a long-term contract.

Furthermore, international giants hope to acquire domestic courier companies to quickly fill the gaps of their domestic coverage. But there are not many candidates for acquisition. Large private courier companies are mostly alliances of small franchisees. The headquarters have limited managerial control over franchisees, which fight for their regional turfs. If international giants acquire these franchisees, they have to inject a lot of capital and energy to remedy this situation.

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Timing is everything in FedEx expansion

Posted by | Oct 17, 2007 | |

FedEx Ground is undergoing an overall expansion — and its new facility in Orion Township is part of that growth.

Timing is everything for FedEx when it comes to opening up new facilities, says Allison Sobczak, corporate communications for FedEx Ground. While Metro Detroiters have yet to greet trick-or-treaters at their doors, FedEx is in full swing of their busiest season — the winter holidays.

The new 190,000-square-foot, USD 30 million facility replaces two Metro Detroit FedEx facilities in Pontiac and Sterling Heights, which have been closed. Their operations are transferred to the new facility in Orion Township.

FedEx Ground chose Orion Township because of its access to major highways, the local labor pool and its business-friendly reputation. “Most importantly, we look for proclivity to our customer base and from what I understand a lot of the growth in the area has been north of the city.”

FedEx Ground has facilities in Livonia and Ann Arbor to handle the rest of the greater Detroit area.

The Orion Township facility will utilize much more automation in processing packages than the facilities it replaces. It is one of 300 other expanded local facilities in the nation.

Sobczak says reduced transit time is part of FedEx Ground’s overall expansion plan. “In 2003 in more than half of our shipping lanes, about 65,000, we have been able to decrease transit times.”

With the opening of the Orion Township facility, transit times from Detroit to Florida have decreased from four days to three, says Sobczak “Overall these facilities speed up our network, they improve package processing with the improved automation and minimize package handling.”

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Deutsche Post CEO Zumwinkel Confirms 2007 Ebit Guidance

Posted by | Oct 15, 2007 | |

German mail and logistics company Deutsche Post AG at the weekend confirmed its 2007 guidance for earnings before interest and taxes, or Ebit, and despite the uncertain U.S. economy, still sees an increase possible this year.
Chief Executive Klaus Zumwinkel, who was visiting Moscow at the weekend, said he can confirm the outlook now the third quarter has ended; Ebit for 2007 is planned to reach EUR3.6 billion from EUR3.5 billion a year earlier.
Zumwinkel reiterated that it is possible the company will increase its guidance. This was mentioned earlier in the year after the Bonn-based, DAX company delivered its half-year results.
Deutsche Post’s unit Express, like its peers United Parcel Services Inc. (UPS) and FedEX Corp. (FDX) faces a weak U.S. market, said the CEO.
The CEO also confirmed this year’s guidance for the company’s business segments. Express will reach an Ebit of at least EUR400 million, while logistics could reach operating profit of around EUR900 million.
The medium-term goal for the business in the Americas has not been lowered, and Deutsche Post still plans to reach break-even by the end of 2009 in the Americas, he said.
In 2003, Deutsche Post acquired U.S. Express postal service Airborne. After this takeover, the company incurred losses that are valued in the three-digit million euro range. The company said it would break-even on two occasions, but is still to do so.
The CEO has replied to criticism surrounding the losses by saying it is inevitable for a conglomerate with international customers, like Deutsche Post, to do business in the U.S.

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FedEx Ground Reports Federal Court Decisions

Posted by | Oct 15, 2007 | |

FedEx Ground, a subsidiary of FedEx Corp., reports that the United States District Court in Indiana in the pending multi-district litigation has issued a decision granting class certification in the Kansas action for both the Kansas state claims and a national claim under the ERISA statute.

FedEx Ground plans to seek prompt review of this decision by the Seventh Circuit Court of Appeals.

In a separate order, the Court denied the plaintiffs request for a temporary restraining order and preliminary injunction in the California action, also pending as a part of the same multi-district proceeding.

This court decision will not affect FedEx Grounds ability to serve its customers in the world-class manner they have come to expect.

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State reviews options to ease delays at Anchorage Airport

Posted by | Oct 14, 2007 | |

Traffic at the Ted Stevens Anchorage International Airport is steadily increasing, and airport planners believe that the growth could soon lead to take-off and landing delays, more circling for landing slots and longer taxi times on the ground.

By 2012, estimates show there will be a 60-minute wait for some aircraft accessing the airport during weekday afternoons, according to Anchorage airport development director Rich Wilson.

Those projections have led airport planners to consider options for infrastructure growth to head off the problem. Ideas include building a second north/south runway or altering existing runway patterns.

Wilson gave a presentation at the Anchorage Air Cargo Association’s monthly meeting on Sept. 25.

The cost of building the North South runway in 1979 was USD 32 million. Wilson didn’t give a cost to build an additional runway. Such work generally would run into the tens of millions of dollars.

Building a new north/south runway is one of several options airport planners are considering, Wilson said.

Other options included making adjustments to the existing east/west runways, as well as developing an airpark near one of the runways.

Some could argue that cargo carriers UPS and FedEx would be the biggest beneficiaries of spending millions of dollars to build a new runway.

FedEx and UPS together generate USD 15.4 million a year in landing fees.

FedEx is the second highest revenue generator at USD 9.2 million, behind Alaska Airlines passenger and cargo services, at USD10.5 million. China Air ranks third, making the airport USD6.9 million, while UPS ranks in the fourth position at USD 6.05 million.

FedEx, UPS and Northwest Cargo all value Anchorage International as their premier gateway hubs to Asia.

FedEx currently has 20 flights from Anchorage daily, according to McCluskey. UPS has more.

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