Tag: FedEx

Business Post Group – close period trading update

Posted by | Apr 4, 2007 | |

Business Post Group plc today issues the following close period trading update for the twelve months ended 31 March 2007.

At interim results in November 2006 Business Post Group said that it expected a much improved second half.

The company reported that this has been achieved and expect to report revenue growth of around 18% in the second half year giving revenue growth for the full year of around 17% – primarily driven by the continued strong performance of UK Mail.

The exit from the FedEx Corporation contract is progressing satisfactorily. As announced on 6 February 2007, an exceptional cost of some GBP 1m will be incurred in the current financial year relating to contract exit costs. This will be offset by an exceptional gain of GBP 1m from a recent property disposal.

Good progress is being made in creating the platform from which the group’s strategy – to develop Business Post into the UK’s leading independent integrated postal group – can be achieved.

As a result of the above, the Board anticipates that the results for the year to 31 March 2007 will be in line with its previous expectations.

Preliminary results for the year ended 31 March 2007 will be announced on 23 May 2007.

Read More

FedEx honoured by General Motors as a 2006 Supplier of the Year

Posted by | Apr 2, 2007 | |

FedEx Global Supply Chain Services, company that provides supply-chain management solutions, was presented the General Motors 2006 Supplier of the Year award for its overall business performance in providing GM with world-class logistics services.

The 15th annual award — themed the “Best of the Best” — was given during ceremonies Saturday, March 31 in Orlando, Fla. FedEx Global Supply Chain Services, the first logistics provider to receive the GM Supplier of the Year award in 1998, is now the only logistics company to earn the honor for nine consecutive years.

Since 1995, FedEx Global Supply Chain Services has managed the inbound transportation for more than 1,125 suppliers into 27 GM powertrain, engine, transmission and component plants, primarily in North America.

The GM Supplier of the Year award began as a global program in 1992. Winners are selected by a global team of executives from purchasing, engineering, manufacturing and logistics who base their decisions on supplier performance in quality, service, technology and price. This year, General Motors honored 89 suppliers for their outstanding performance throughout 2006.

FedEx Global Supply Chain Services provides critical inventory logistics, transportation management, fulfillment and fleet services to improve the supply-chain performance of its customers and offers customers process discipline through flexible and scalable solutions.

Read More

Border hikes costs, Canada Post says

Posted by | Mar 31, 2007 | |

I cannot agree with Mr. Bank’s assessment that Canada Post has ‘shockingly high postal rates and shipping fees.’

The Canadian parcel delivery market is in fact one of the most competitive in the world, and Canada Post fights for share against large and efficient multinationals such as UPS, FedEx, and DHL, as well as thousands of smaller regional and local players. As a result, Canadians have many practical shipping choices for different levels of service and price from competitors.

EBayers do complain that they cannot compete with United States Postal Service rates, as they compete with other U.S. sellers in a continental marketplace dominated by U.S. buyers. This false logic compares U.S. domestic rates with Canadian cross-border rates, which are naturally higher. Postal administrations and private couriers alike structure their processing and delivery networks on a national footprint. Crossing from one network to another duplicates costs, while customs clearance adds more still.

It is simply unrealistic to expect that a Canadian-based eBayer selling to a Californian, and therefore obliged to pay international shipping rates for fulfillment, would be on equal footing with an American eBayer offering a competing item and could fulfill using a domestic U.S. service. It is not uncommon to see prices for cross-border delivery, from any of the couriers serving the Canadian market, that are double or triple the price for similar service within Canada, or for domestic service within the United States.

Canada Post has a statutory mandate to operate on a financially self-sustaining basis and is prohibited by law from cross-subsidizing its parcel business with revenues from lettermail. Our parcel services are provided on a purely competitive basis and are priced accordingly.

Within this competitive context we have annual price increases, as do our competitors, necessary to cover rising costs. Mr. Banks is wrong to say that our prices have doubled on average over the last four years. Since his reference point is the U.S. market, it is surprising that Mr. Banks did not mention the impact of the Canadian-dollar exchange rate over this period, which clearly would have had a much greater impact on ecommerce and eBay Canada sales volumes in to the United States.

Canada Post has been actively encouraging the growth of ecommerce in Canada. Canada Post engaged in a strategic partnership with eBay in order to integrate shipping within the eBay/ PayPal online marketplace. Not only does this afford eBay sellers and buyers significant convenience and time savings, it also provides eBayers with savings of 8% to 9% on their shipping costs.

Louis O’Brien, president, parcels division, Canada Post Corp.

Read More

Land of the Rising Hubs

Posted by | Mar 28, 2007 | |

Changi Airports International still runs Singapore”s international airport, but these days it is pushing aggressively into other Asian markets. The wholly owned subsidiary of Singapore”s Civil Aviation Authority announced in late February it had formed a partnership with Indian conglomerate Tata Group to bid jointly for airport projects in India.

The agreement came just weeks after Changi announced it would spend USD138 million to acquire a 29 percent position in China”s Nanjing Lukou International Airport.

Hong Kong International Airport has already moved into Mainland China taking on the management of Zhuhai Airport under a 20-year agreement.

HKIA formed another joint venture in China in mid-December, this time with Hangzhou Xiaoshan International Airport.

Attracted by an ambitious expansion program led by the government, and by the flood of related businesses moving into China, foreign capital and management expertise is also pouring into China”s airport operations.

China shows no signs of running out of expansion opportunities for foreign airports any time soon. The country”s dizzying growth in air traffic has the authorities scrambling in a race to avoid paralysis. By last June, 18 of China”s 142 commercial airports had reached capacity, and another 29 stood to reach their cargo limits by 2010, the Civil Aviation Administration of China warned.

Aiming to push the number of commercial airports in China to 186 by 2010, authorities in Beijing have earmarked more than USD17.5 billion for modernization and construction of airports over the next four years.

FedEx Express is developing a USD150 million hub at Guangzho airport, which is slated to become the integrator”s largest hub outside the United States. FedEx is building an 880,000-square-foot facility sitting on 156 acres with a capacity to handle up to 24,000 packages in an hour. DHL, which expanded its express facilities at several Chinese airports last year, has pledged to set up an operations center at Baiyun.

On the freight side, the biggest push for the airport likely will come from China Southern Airlines, which is based in Guangzhou.

Read More

Where winners are fast rather than large

Posted by | Mar 27, 2007 | |

Few industries are more exposed to the forces of globalisation than logistics. As supply chains are stretched across oceans and continents, manufacturers and retailers are increasingly looking for logistics partners with international capabilities.

By far the biggest deal was Deutsche Post’s GBP3.7bn takeover of Exel, the UK-based logistics group, in 2005. Others included the USD1.1bn merger of Deutsche Bahn, the German rail operator, and Bax Global, the logistics arm of US-based Brink’s. Another was the EUR490m acquisition of Paris-based ACR Logistics by Kuhne & Nagel of Switzerland.

John Allan, chief executive of DHL Logistics says consolidation is likely to continue. He points out that the world’s top 10 freight forwarding companies command less than 40 per cent of the global market.

Deutsche Post’s takeover of Exel accelerated its transformation from a German mail and express delivery group into a global freight and logistics giant.
Mr Allan says DHL is already reaping the rewards of the increased scale and capabilities provided by Exel.

DHL is not the only express delivery group expanding into other supply chain services. UPS has invested more than USD2bn in about 30 acquisitions over recent years – most of them involving freight and logistics businesses.

FedEx, UPS’s biggest US rival, has a large road freight operation and is keen to expand its ocean freight-forwarding capabilities.

The most decisive rejection of diversification has come from TNT of the Netherlands, which sold its logistics and freight forwarding operations last year to refocus on mail and express delivery.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest