Tag: FedEx

INVESTING IN CHINA: A dogfight for courier service dominance

Posted by | Feb 15, 2006 | |

When FedEx paid Dollars 880m for Flying Tigers, a cargo airline, in 1988, it was buying a piece of Chinese history. Flying Tigers was founded by, and named after, a group of American volunteer fighter pilots who flew for China against Japanese forces in the second world war.

FedEx, however, was more interested in the international cargo network that came with the deal – including access to China.

The acquisition helps explain why, nearly two decades later, FedEx operates more flights to China than any other express delivery company.

Next month, the company will add a further three flights, taking its weekly total to 26, and work is under way to relocate its regional hub from the Philippines to the southern Chinese city of Guangzhou.

But while FedEx enjoys aerial supremacy in to and out of China, inside the country it faces a much tougher dogfight with its rivals DHL, UPS and TNT. FedEx’s need to strengthen its domestic capabilities explains why it agreed a Dollars 400m deal last month to take full control of its Chinese joint venture with Tianjin Datian W. Group.

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FedEx sees steady global growth in '06

Posted by | Feb 9, 2006 | |

Global economic growth prospects appear to be in good shape heading into 2006, FedEx chief economist Gene Huang said Thursday. Global growth should be slightly above 3% this year, after growing at a 3.3% rate in 2005, Huang said.
Huang has an enviable vantage point for an economist – a front row view of the global supply chain management system. ‘I get to watch traffic flows in every sector of every economy in the world on a real time basis,’ Huang told reporters at a briefing. The global business cycle is still determined by trade in goods, Huang said, as the services sector remains constant. Huang said 2006 will be a ‘typical mid-cycle year’ for the global economy, with continued demand and improvement in labor markets. ‘A mid-cycle environment is all about sustainability,’ Huang said. The durable goods and industrial sectors remain strong and there will be ample opportunities in merchandise trade supported by inventory restocking and pent-up demand in capital spending. The United States and China continue to be the global growth engines, Huang said.

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Renewed thrust for DHL: delivery firm says it has fixed infrastructure and will attack UPS-FedEx duopoly anew

Posted by | Feb 7, 2006 | |

The challenger came on strong last year with a splashy, USD150 million ad blitz that portrayed its bright yellow fleet as a reliable alternative to UPS and FedEx. DHL, long the dominant small-package carrier outside the United States, was determined to break into the domestic duopoly of UPS and FedEx which, together, control 80 percent of deliveries in the world’s largest market. It’s been a bumpy road so far. A series of breakdowns in DHL’s domestic delivery network stranded huge numbers of US packages last fall, lowered on-time deliveries to levels company officials called “totally unacceptable” and cost UD280 million in lost revenue. Now, with its infrastructure problems apparently fixed, DHL plans another major ad campaign during the Winter Olympics aimed at wresting market share from its American rivals. “Our strategy going forward is totally unchanged, and it’s beginning to bear fruit,” said John Pearson, DHL’s executive vice president. “We’re challenging the duopoly here with a flexible, responsive and more human approach – and the reaction from customers has been very favorable.”

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Bosses return to ‘coal face’

Posted by | Feb 2, 2006 | |

Business Post Group chief executive Guy Buswell says changes since he took over six weeks ago have already led to improved service levels.
Buswell faces an important period with major customers: Walsh Western, for which it delivers Dell computers and which had high volumes in January; and Federal Express, whose contract is up for renewal this spring.

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