Tag: International

Aramex is first logistics company in Middle East to use hybrid vehicles

Posted by | Jun 29, 2008 | |

Aramex announced that it has introduced four hybrid cars to its ground fleet, becoming the first logistics company to use hybrid vehicles in the Middle East. The move is part of Aramex’s bid to help reduce its carbon foot print across the region, demonstrating the company’s commitment to environmental sustainability as it takes a step toward its ambitious goal of becoming the industry’s first carbon neutral provider.

At a critical time when high oil prices are putting a strain on the industry, the use of hybrid vehicles not only helps protect the environment, but also provides a cost effective solution to soaring fuel costs.

Using pioneering technology, the environmentally-friendly hybrid vehicles operate on two engines designed to minimise fuel consumption, while reducing the harmful emission of carbon dioxide.

Running on an electric motor and switching to fuel based on the load of the engine, it is estimated that hybrid cars reduce fuel costs and carbon emissions by 50.0 pct.

In-line with the Company’s drive to reduce its impact on the environment, Aramex has switched the majority of its fleet to unleaded fuel and is now looking at ways in which it can make its entire fleet environmentally-friendly.

As part of a comprehensive strategy outlined in its annual Corporate Sustainability Report (CSR), Aramex has set aggressive environmental targets, including the reduction of carbon emissions per shipment by 50.0 pct before 2009.

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Mexican express market hit by weaker demand

Posted by | Jun 27, 2008 | |

The Mexican express market is starting to experience the impact of falling US demand and rising prices driven by higher fuel surcharges, according to a recent newspaper report. DHL is meanwhile pledging further investment in Argentina.

In Mexico, which has strong trade links with the USA, air cargo volumes dropped by 12.9 pct in the first quarter of 2008, the Reforma newspaper reported. Mexican airlines saw a 33.8 pct fall in their domestic volumes, although their international shipments rose by 18.4 pct, it said, citing figures from the Mexican civil aviation authority.

International airlines, including FedEx and UPS, suffered a combined 15.4 pct declines in volumes, it added. FedEx suffered a 73 pct decline in Mexico volumes while UPS had a 9.1 pct drop, according to official figures.

Customers started to switch business away from air transport rather than pay higher prices resulting from the rapid increase in fuel surcharges, the newspaper said. It cited UPS manager Miguel Trejo as saying that the situation was “stable” until now. But he added: “There are certain reductions in the growth expectations, however, and we are staying alert to market behaviour.”

In Argentina, in contrast, DHL Express has announced that it is maintaining its leadership of the international express market, with market shares of about 50 pct for express exports and 30 pct for imports.

Roger Crook, CEO DHL Express, International Americas, said on a recent visit to Buenos Aires that DHL would continue to invest in the market to offer customers the best possible service and a wide range of products. DHL Argentina has six operational centres linking the major cities, and operates with 90 vehicles, which it described as 30 pct more than the combined vehicle fleets of other international express operators.

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DHL begins ABX cutbacks

Posted by | Jun 27, 2008 | |

DHL notified ABX Air this week it will cut its use of the carrier’s DC-9 freighters by 23 aircraft starting next week, starting the DHL restructuring in the United States that will move the express operator’s volume over to UPS.

The cutback will reduce ABX revenue by approximately USD 3 million, the airline said. It is not yet known how many employees will be affected.

On May 27, DHL informed ABX Air that, starting in the third quarter, it intends, as a part of phase one of its cost-reduction programs, to remove from service over the next 12 to 18 months, 39 of 55 DC-9 aircraft that ABX Air has dedicated to DHL’s U.S. network.

“This reduction is in line with what we have planned for, and we are taking the steps necessary to accommodate these changes,” said Joe Hete, president and CEO of parent company Air Transport Services Group. Hete emphasized that his company will continue to perform under the current ACMI agreement and to pursue efforts to present DHL with a flexible plan to maintain a dedicated, efficient, and customized air network in the United States. The ACMI agreement with DHL includes a put provision that gives ABX Air the option to retain or to sell back to DHL the aircraft removed from the DHL network.

ABX has lately been aggressively expanding business with other customers. That effort will also continue, said Hete.

ABX Air has been DHL’s principal business partner in the United States since August 2003, when it became an independent publicly held company as its former parent, Airborne Express, was acquired by DHL.

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New directors extend APC Overnight prowess

Posted by | Jun 27, 2008 | |

APC Overnight has recently appointed two additional industry experts to its Board of Directors. Jon Barber, owner of Scarlet Couriers, and Syed Ziaullah, owner of Action Express, join the existing team of parcel logistics experts, comprising Quentin Abel, Paul Griffiths and Ivor Skinner. Barber takes on the role of Marketing Director, with Ziaullah taking up the mantle of Operations Director.

Barber has developed his Thames Valley-based Scarlet Couriers into one of the UK’s largest independent couriers. He brings his skills in targeted branding and publicity to his new role at APC Overnight. “It’s said that a brand is a promise that you make to the customer – underlining what people can expect of a company. Our brand stands for quality on a national scale, and our task is to make sure it is recognised wherever people need excellent delivery services,” says Barber.

Ziaullah is passionate about the parcel delivery business and his can-do attitude has proven to be the driving force of the 25 year history of his Northampton-based company Action Express. “The dedication of people involved in the network “from Day One” is a major APC strength, and the current Board offers and excellent balance of skills and experience to take the company forward,” adds Ziaullah.

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European Parcels Market: Price Pressure Eclipses Growth through Internet Trade

Posted by | Jun 26, 2008 | |

After several years of strong sales growth for courier, express and parcel (CEP) services, in the coming years the figures in Europe are expected to slip back. Average annual growth in revenues in international CEP markets, for example, will decline from 8.6 percent today to 6.6 percent in 2010. The almost constant growth in transport volume resulting from steadily rising internet trade is being eclipsed by considerable price pressure. This is one of the conclusions from the latest study conducted by A.T. Kearney. Transport costs are being driven ever higher by the rising price of oil, and this could lead to a significant shift in the choice of means of transport in future. Although costs are rising, for highly time-critical goods such as express parcels there will be no alternative to air transport even in years to come. CEP providers need to tighten up their own market positioning and service provision profile and compensate for price pressure and increases in factor costs through strict cost management. The key challenges are the pressure to differentiate, the expansion of international networks, zonal pricing, closed supply chains and continuing consolidation.

Impacts of the high oil price on the global transport industry

For highly time-critical goods such as express parcels or spare parts, but also for high-value moisture-sensitive goods, there will still be no alternative to air transport in the future. Nevertheless, in the short and medium term opportunities to benefit from this within Europe will be available to service providers who build on a good road network, as in this case fuel costs are a considerably less weighty factor than in air transport.

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