Tag: FedEx

FedEx lawsuit could cost USD 630 million

Posted by | Aug 9, 2007 | |

A federal judge in South Bend this month will weigh whether lawsuits filed by independent contractors against FedEx Corp. in two dozen states should be combined.

About 150 independent contract drivers, designated by FedEx as part-time employees, seek to be classified as full-time workers, according to Bloomberg. That would entitle them to benefits and paid time off.

FedEx also could be forced to buy up to 15,000 trucks used by the drivers, at USD 45,000 apiece. According to some estimates, a favorable ruling for contract drivers could cost the Memphis-based company USD 630 million.

FedEx has been nipping at the heels of larger United Parcel Service, grabbing nearly 20 percent of the ground-delivery market, while UPS has shrunk to 70 percent from 82 percent over the past decade.

The Teamsters union, which represents UPS drivers, is behind the flurry of lawsuits, according to FedEx. It filed as evidence with the court copies of emails between the union and attorneys representing the independent drivers.

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FedEx Kinko’s to Introduce Locations in McCormick Place

Posted by | Aug 9, 2007 | |

FedEx Kinko’s and the Metropolitan Pier and Exhibition Authority (MPEA) today announced plans to open five office and print centers in the McCormick Place convention center and historic Navy Pier in Chicago. Detailed plans provide for four locations to open within the convention center facility and one in Navy Pier later this fall.

The presence of FedEx Kinko’s in McCormick Place will provide the convention center’s nearly three million annual visitors with convenient access to high-quality office, printing and shipping services all in one place, without leaving the facility. In addition, customers anywhere in the world may submit orders online for production at the new FedEx Kinko’s locations, saving the hassle of traveling with hefty materials and presentations.

The new FedEx Kinko’s centers will be located in the North, South, and West Buildings and Lakeside Center (formerly the East Building). Similar to stand-alone FedEx Kinko’s Office and Print Centers, these locations will offer copying and digital printing services, sign and banner production, FedEx Express and FedEx Ground shipping options, and more.

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Interview – Cologne seeks to defend status as Europe's top express airport

Posted by | Aug 8, 2007 | |

Cologne/Bonn Airport is determined to defend its position as Europe’s leading airport for express cargo despite the move of DHL to Leipzig, managing director Michael Garvens told CEP-Research in an interview. Integrators and low-cost passenger airlines will remain the two core businesses in the future, he said.

Cologne/Bonn, with some 700,000 tones of air freight in 2006, is Germany’s second-largest cargo airport behind Frankfurt but the largest for express traffic due to the UPS European air hub and DHL’s night flight hub. This year it is expecting to grow to about 740,000 tones.

Cologne, with rapid access to Germany’s main export region of North Rhine-Westphalia, had a much better location than Leipzig, he noted. “Integrators are close to their customers in Cologne,” he declared.

The relocation of DHL and Lufthansa Cargo flights to Leipzig later this year and during early 2008 will mean the loss of some 215,000 tones of freight and some EUR 20 million in revenues. DHL, which will close down its larger European hub at Brussels next year, expects to handle some 700,000 tones a year at its new European express hub at Leipzig, which is due to go into service in August 2008.

The relocation of FedEx’s Central and Eastern European hub from Frankfurt to Cologne in 2010 will compensate for about one-third of the lost DHL tonnage. This will enable the airport to grow from about 550,000 tones to well over 600,000 tones in annual volumes that year.

Cologne/Bonn generates about 40 pct of its revenues, which grew to EUR 256 million last year, from freight, and expects to maintain this share in the future.

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FedEx switches partners in Russia

Posted by | Aug 7, 2007 | |

FedEx has dropped its Russian partner Emex and signed a new Global Service Partner (GSP) contract with transport group Major. Russia is developing into a more important market for FedEx.

The new Russian GSP is Major Express, the express division of the freight transport group Major and founded in 2003. The Major group, created in 1998, is represented all over Russia with 90 regional offices and 2,500 sites, and offers a wide range of freight transport by road, rail, air and sea. According to information on its website, Major is an exclusive partner of air freight forwarder Expeditors, gained an ISO 2001 certificate in 2006 and joined FIATA and IATA in February 2007.

FedEx would work with Major and also other Russian transport firms to broaden its network in the country.

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Allied Capital Announces Buyout of Worldwide Express

Posted by | Aug 7, 2007 | |

Allied Capital Corporation announced today that it has completed the buyout of Worldwide Express Inc., (“WWEX”), a leading reseller in the U.S. of DHL express and ground shipping services to the small and medium-sized business market, with a USD 15.7 million subordinated debt and equity investment. Management of WWEX also made a significant debt and equity investment alongside Allied Capital. Third party lenders provided all of the senior financing and the majority of the subordinated debt for the deal.

Worldwide Express is the largest master franchisor of DHL shipping services in the U.S., with approximately 150 franchisees serving over 60,000 small business customers nationwide. The reseller model is used by DHL to penetrate the highly fragmented small and medium-sized business (SMB) market with a direct, high-touch sales strategy. WWEX supports this strategy by providing its franchisees access to over 200 days of sales and marketing training per year, recruiting and operational support, in addition to localized service, customized billing solutions, and pricing discounts to its customers.

Fidus Partners served as advisor to WWEX in the transaction.

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