Tag: Forwarders/Agents

DHL deal with UPS faces scrutiny from American Postal Workers Union

Deutsche Post World Net’s plans to restructure its DHL US Express business, announced last week, have come under scrutiny from the American Postal Workers Union and other lawmakers.

The transport and logistics company working towards a contract with UPS to provide airlift for its domestic and international shipments in North America. In the proposed agreement DHL will no longer use air carriers ABX and ASTAR. The two air carriers stand to lose as many as 8,200 jobs at the Wilmington Air Park.

“[An employee strike is] not something we’re anticipating,” said Jonathan Baker, a spokesperson for DHL. “We’re working closely with all of our partners to continue services and we have received assurances from both companies that they will continue to operate without any impact to the business.” ASTAR forwarded inquiries to DHL.

However, Baker went on to say that DHL may not be pulling out of Wilmington completely. “We will be transitioning the domestic air volume to UPS, which we believe will expect greater reliability,” he said, “but we will have a continuing need for operations at the DHL air park in Wilmington.”

He explains, “[The park] not only serves as a domestic air volume sorting facility but also handles ground volume and clears and sorts our international package volume. There is no decision yet as to where those operations will be located. It’s possible they will continue in Wilmington.”

In total, this plan could cost upwards of USD 2 billion. DHL said it would decrease its infrastructure network in the US by 30% and reduce its ground linehaul network by 18%. Pickup and delivery routes will decrease 17%.

According to UPS the agreement, when finalized, will provide the company with USD 1 billion in additional revenue.

DHL plans to cut its 40,000-stong staff by 4%.

Read More

Poste Italiane flagged as Alitalia vehicle

Italy’s state-owned mail group Poste Italiane is again being flagged as a possible vehicle to rescue the ailing Alitalia, this time as part of a consortium.

Poste Italiane relies on 16 daily flights, some operated by Alitalia, to transport its mail and Italian media have already carried stories indicating it might be interested in the airline’s cargo business. Poste already operates its own cargo carrier, Mistral Air.

Poste’s CEO Massimo Sarmi cautioned that he has not yet been approached to join the proposed group.

He stressed that any decision to pick up pieces of the cargo business or to be part of a consortium would be based on business considerations.

Read More

ABX Holdings reports first quarter results

ABX Holdings, Inc. reported first-quarter net earnings of USD 3.8 million, or USD 0.06 per common share, on strong revenue growth to USD 382.1 million, driven both by its acquired airline and air services businesses and its expanded charter fleet of Boeing 767 freighters. In the first quarter of 2007, ABX Holdings earned USD 4.3 million, or USD 0.07 per share, on revenues of USD 288.1 million.
ABX Holdings acquired the businesses of Cargo Holdings International (CHI) at the end of last year. The principal businesses of CHI include two independently certificated airlines, Air Transport International (ATI) and Capital Cargo International Airlines (CCIA), and a leasing company, Cargo Aircraft Management (CAM). Collectively, the CHI businesses contributed approximately USD 75.4 million, or 80pct of the year-over-year increase in ABX Holdings’ first-quarter consolidated revenues. Growth in ABX Air’s businesses, principally its air charter operations, provided the remainder of the revenue gain. The CHI businesses also contributed approximately USD 1.7 million in net earnings during the quarter, net of acquisition-related interest expense.
ABX Holdings’ pre-tax earnings declined to USD 6.2 million in the first quarter from USD 6.9 million a year ago. The decline principally reflects a USD 4.6 million increase in net interest expense associated with financing of acquired businesses and additional aircraft. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased 78pct to USD 36.8 million in the first quarter, compared with USD 20.7 million in the year-earlier period (see Reconciliation of EBITDA to GAAP Net Earnings at the end of this release). EBITDA is a non-GAAP measure of financial performance that management believes better reflects the cash-generating performance of asset-intensive, financially leveraged businesses such as ABX Holdings.

Read More

The Future of Mail by Air

A project to develop a postal air waybill (PAWB) and several related activities could enable airlines to manage mail traffic as part of their general cargo systems very soon, with significant cost and service benefits to their postal service customers. Air cargo and airmail must now travel internationally with different documents: the air waybill and postal delivery bill consignment note. Separate processes are required to track the two traffic categories, a problem compounded by the fact that airlines use air waybills to track whole consignments, whereas postal organisations want to be able to track individual bags or trays.
To bring these systems together, airlines and the postal authorities will have to work together to integrate the functions of their cargo and mail system, explains Jörgen van Mook, manager of Operations Planning for the International Post Corporation. “Then the airlines can manage mail in their cargo systems and, over time, do away with the stand-alone systems they use only for mail.” That objective is a central element in a joint initiative called the Future of Mail by Air established in early 2006 by members of the IPC and a group of mail-carrying airlines, including AF-KL cargo.
The postal authorities want airlines to improve the quality of service they provide, particularly for tracking mail consignments, and at the same time charge them less. However, in aligning the processes and systems required to do this, they want to avoid changing the legal status of mail, says Mr. van Mook. “Mail has to remain mail and not become cargo.” Mail and cargo are ruled by different conventions, Mr. van Mook explains. “Mail is ruled by the Universal Postal Union Convention and carried under postal delivery bills. It also has separate procedures for customs clearance.”
The Patch
Postal authorities and airlines have come up with the clever idea of creating a postal air waybill number, a reference number that enables airline cargo systems to track mail without the legal status it would have travelling with an air waybill. “Manifesting mail in a cargo system under a postal air waybill number does not mean creating an electronic air waybill,” Mr. van Mook says. “Mail would continue to travel with a postal delivery bill. However, it would have a special handling code, MAL, in the airline tracking system. IATA recently approved this designation specifically to enable mail tracking. Using a PAWB number, carriers can identify traffic as mail in their cargo systems and identify it for customs.”
Stéphane Bocquet, AF-KL Cargo’s director of Airmail, says the PAWB development is significant. “We will be able to add more value for our customers in the postal sector by providing enhanced tracking and tracing at a reasonable cost. The mail situation today is similar to the time when carriers and forwarders agreed to develop Cargo 2000 in order to ensure better visibility of their shipments.” Moreover, the continuing development of Cargo 2000 could also play a role in the airmail sector, adds Marloeke Werst, AF-KL Cargo’s sales director of Airmail Services. “Cargo 2000 provides the status messages required for tracking cargo based on the use of air waybill numbers. If we introduce postal air waybill numbers for airmail, then it opens the possibility of using Cargo 2000 to generate the messages for that traffic as well.”
In Practice
“The idea now is to let individual airlines and postal authorities decide how they want to number their mail shipments,” says Christophe Eggers, international networks manager for La Poste. The process starts when the post enters the airline booking system and creates a profile for tracking. Then, either the airline issues a PAWB number or the post provides the airline with a number. In one case, the airline could send an allotment of
PAWB’s to the post, which could allocate them to shipments as it sees fit and inform the carrier accordingly. Alternatively, the post could send the airline an EDI

Read More

Delta acquires Northwest in USD 3.1B deal

Delta Air Lines announced a long-speculated deal to acquire Northwest Airlines for about USD3.1 billion Monday, a combination that will create the world’s largest airline and could lead to a series of other deals to reshape the U.S. airline industry.

The new carrier will operate under the Delta name, and be based in Atlanta.

Delta said the carrier will maintain the nine hubs of both airlines in the United States, Europe and Asia, serving more than 390 destinations in 67 countries. The combined carrier will have USD35 billion in annual revenue, more than 800 airplanes and 75,000 employees, according to Delta.

But many of the employee unions at Northwest were quick to voice opposition to the deal, even though Delta said it is not looking to cut non-office staff.

The deal could lead to less competition and higher fares on some routes where the two carriers now compete. But there is relatively little overlap between the current Delta (DAL, Fortune 500) and Northwest (NWA, Fortune 500) systems.

The greater impact on competition and fares could come if other major carriers follow suit and negotiate their own deals in response. Some experts have suggested that several deals could eventually leave three mega-carriers handling about 80% of the nation’s air traffic.

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!



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.

 

Pin It on Pinterest