Tag: FedEx

DHL looks to expand overseas shipments from the U.S.

Posted by | Mar 8, 2007 | |

Deutsche Post’s DHL is looking to expand overseas shipments from the United States, a senior U.S. manager said.

James Cameron, executive vice president of operations, said Plantation-based DHL has posted a ”slight uptick” in U.S. package volume. However, he added, DHL doesn’t necessarily want to be as big in the United States as FedEx and UPS. ”The scope of what we have is nowhere near the two big giants in the U.S.,” said Cameron.

DHL, a unit of Deutsche Post, Europe’s largest postal service, has spent more than $2 billion in the United States since 2003. DHL said in December it didn’t expect to break even in the United States until 2009.

DHL held about 2 percent of the U.S. ground delivery market at the end of 2006, with UPS controlling 68 percent and FedEx with 18 percent, according to Rick Paterson, an analyst with UBS Investment Research in New York. The U.S. Postal Service and other firms have the rest.

Deutsche Post, based in Bonn, labeled DHL’s U.S. unit its ”weakest performer” in December.

”DHL just does not compete with FedEx and UPS when it comes to service and reliability,” Daniel Ortwerth, an Edward Jones & Co. analyst in St. Louis, said. “The U.S. customer just does not tolerate that.”

Satish Jindel, president of Pittsburgh-based SJ Consulting, said he expects DHL to stick with its strategy of retaining the business it has already won in U.S. ground shipping for at least the next two years, until it is profitable.

DHL’s U.S. division has more than 21,000 employees and contracts for its air lift with closely held Astar Air Cargo, based in Miami, and ABX Air, based in Wilmington, Ohio. As a foreign-owned company, DHL is prohibited from owning a U.S. airline.

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USPS upgrades international products with alliance partners

Posted by | Mar 2, 2007 | |

The US Postal Service (USPS) aims to grow its international business with guaranteed products offered through the ‘Kahala Postal Group’ (KPG) of selected international postal operators, a top official told CEP-Research in an interview. Royal Mail and Spain’s Correos have just agreed to join the six-strong group.

The USPS is putting a stronger focus on its international business than in the past, and aims to target small US firms for their international express mail and deferred parcel business, Paul Vogel, managing director global business and senior vice president, said on the sidelines of this week’s World Mail & Express Logistics Middle East, Africa & South Asia conference in Dubai. He took charge of the newly-created Global Business unit in summer 2006.

Britain’s Royal Mail and Spain’s Correos have just agreed to join the KPG alliance, Vogel said. The fundamental aim was to expand the alliance to other postal operators in Europe and elsewhere as they upgraded their performance standards to be able to provide guaranteed services. “ I believe most Posts can improve their service,” Vogel commented. But he added: “If a post cannot promise visibility and service, then I need an alternative.”

Although the Kahala members had a reasonably balanced flow of items, there were no plans to invest in any postal air network, Vogel stressed. USPS has a long-term agreement with FedEx for its international uplift, and uses both FedEx and UPS alongside commercial airlines within the USA.

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Interview – FedEx eyes booming Middle East-India trade

Posted by | Mar 2, 2007 | |

FedEx is seeking to take advantage of the fast growth in trade between India and the Middle East with its direct flights between the two regions, a senior manager told CEP-Research in an interview.

The US integrator expanded its Middle East capacity in autumn 2005 by upgrading weekday flights from its European air hub in Paris to the Middle East hub at Dubai with an MD-11 freighter. It also started its own flights from Dubai to India in place of using commercial capacity. FedEx now has a daily eastbound and westbound service using MD-11 flights that operate from Paris via Dubai to Delhi and Mumbai, and return via Dubai to Paris.

“The MD-11 flights open up the market with large capacity,” said Brian Britnor, senior manager sales, Middle East & Africa, on the sidelines of this week’s World Mail & Express Logistics Middle East, Africa & South Asia conference in Dubai. Trade between India and Dubai, which has a large Indian business community, has more than quadrupled since 2002 to reach $10.9 billion in 2006, according to official statistics from Dubai released at the end of February.

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FedEx completes acquisition of Chinese firm

Posted by | Mar 2, 2007 | |

FedEx has completed the purchase of Tianjin Datian W. Group Company’s 50% share of the FedEx-DTW International Priority express joint venture and DTW Group’s domestic express network in China for approximately USD400 million in cash.

“China continues to be one of the fastest growing markets in the express industry and a key to FedEx international growth and profitability,” said Michael L. Ducker, president, FedEx Express International.

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FedEx to modernize retirement plans

Posted by | Feb 27, 2007 | |

FedEx Corporation announced new measures it is taking to modernize its retirement plans for most of its employees. These measures will take place in the coming year and are in direct response to recent legislative, regulatory and demographic changes that continue to dramatically reshape U.S. retirement benefit needs.

FedEx will continue to offer highly competitive retirement benefits funded entirely by the company and will also enhance its 401(k) plans. The company expects to spend about the same amount on its employees’ retirement plans over the long run as it would have spent under the current design and current rules.
Under the new program, most eligible employees who participate in a pension plan will begin accruing future benefits under a cash balance formula, which FedEx calls the Portable Pension Account, effective June 1, 2008. Any benefits already accrued under a traditional pension benefit formula will be capped as of May 31, 2008 and will be payable monthly at retirement. These changes will not affect the benefits of current retirees.

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