Tag: International

FedEx to Face China Anti-Dumping Investigation?

Posted by | Sep 29, 2008 | |

FedEx’ Express division in China has cut its prices by up to 40 per cent in recent months, a move that has resulted in a growing market share and a monthly loss of RMB 50m (USD 7.30 m) , The Economic Observer reports. Chinese competitors, who see their existence in danger, are now reportedly urging the government to start an anti-dumping investigation.

FedEx has reduced its prices for shipments three times in 12 months, with the result that since its last cut in June, its market share has risen and volume has quadrupled, The Economic Observer writes.

China’s Ministry of Commerce and the China Federation of Logistics and Purchasing have been urged by Chinese express companies to support a proposal that the government launch an anti-dumping investigation into FedEx’ pricing strategy. China Post’s EMS and S.F. Express, the country’s largest private express delivery, say these price cuts are putting a lot of pressure on their companies, could eliminate the existence of small and middle sized express firms and could fundamentally change China’s express market in the next five years.

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DPD to open enlarged depot in north-west Germany

Posted by | Sep 26, 2008 | |

DPD Germany has officially inaugurated its new depot in Essen-Karnap, north-west Germany, which is planned to go into operation on January 2, 2009.

The 5,000 sqm facility, on a 32,000 sqm site, will replace the smaller DPD depot in Essen by doubling the sorting capacity to up to 32,000 parcels per day. With the new depot, the company aims to strengthen its network in the region in order to keep up with the parcel volume which is expected to grow continuously over the next few years, DPD said.

The company aims for annual volume growth of at least 3 pct at the new depot which has 10 unloading bays and 16 loading bays. All 100 employees and 90 deliverers from the old depot will move to the new facility.

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FedEx gains USD 1.37bn US government contract

Posted by | Sep 26, 2008 | |

The United States Transportation Command (USTRANSCOM) has awarded a contract to FedEx and its team a contract worth an estimated USD 1.37 billion, with a minimum guarantee of USD 150.7 million.

The contract, announced earlier this month, is for international airlift services, which includes the short and long-range transport of Department of Defense passengers and cargo. The Federal Express Team is a consortium that also includes Air Transport, Atlas Air, Northwest Airlines, Omni Air International, Polar Air Cargo Worldwide, and Tradewinds Airlines.

According to the USTRANSCOM Office of Legislative Affairs, the work under this agreement will be undertaken at FedEx hubs and the hubs of team members around the world, and is expected to be completed by September 2009. FedEx competed among 30 proposals for this contract.

The mission of USTRANSCOM is to provide air, land and sea transportation for the Department of Defense.

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Belgian Post eyes Greek express company

Posted by | Sep 25, 2008 | |

Belgian Post is close to buying the express business of the Greek post office, according to newspaper reports.

The Belgian national postal operator is heading a consortium also comprising financial investors that would buy Tachimetafores, the express courier subsidiary of the Greek post office ELTA, the Belgian publication Trends-Tendances reported.

Citing Greek media, the publication wrote that Belgian Post was the final remaining bidder following the withdrawal of Deutsche Post and a dozen originally interested parties. A deal could be sealed within two months, it said.

Tachimetafores has revenues of EUR 30 million, and expects to make a small profit of EUR 700,000, this year, according to the report. The sale is part of the search for a “strategic partner” for ELTA ahead of postal liberalisation, which is scheduled in Greece for 2013.

A Belgian Post spokesman declined to make any comment on the topic, the publication added.

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Senators: Government should block UPS-DHL deal

Posted by | Sep 25, 2008 | |

The Justice Department should block a proposed deal between package delivery companies UPS Inc. and DHL Express because it would violate antitrust laws and eliminate thousands of jobs, a pair of Democratic senators said Thursday.

UPS would provide air transport services for DHL’s North American business for 10 years under a contract the two companies are developing, UPS said in May. Currently, two independent airlines provide the services.

The contract, expected to be completed later this year, could result in USD 1 billion of additional annual revenue for UPS. Other terms of the deal haven’t been disclosed.

But the arrangement also could lead to the closure of a DHL air freight and sorting facility in Wilmington, Ohio, and eliminate 9,000 jobs, the senators’ letter said.

The deal “will substantially diminish, if not eliminate, the competition between DHL and UPS by rendering DHL a captive of UPS rather than an independent competitor,” Sens. Herb Kohl, D-Wis., and Sherrod Brown, D-Ohio, said in the letter. Kohl chairs a Senate antitrust subcommittee.

Norman Black, a spokesman for UPS, said the agreement is a “straight vendor contract” and not subject to antitrust oversight.

Ohio state officials have urged DHL to find other alternatives, but a DHL executive said earlier this month the company is struggling and losing USD 5 million a day. DHL is a unit of German postal service Deutsche Post AG.

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