Tag: Mexico

UPS releases 2nd quarter results 2008

UPS reported a 6.7 pct revenue increase in the second quarter but an 18.3 pct decline in diluted earnings per share to USD 0.85 compared to USD 1.04 the prior year. Increasing fuel costs and a stagnant U.S. economy caused the earnings decline in both the U.S. Domestic and International Package segments.

In contrast, the Supply Chain and Freight segment posted a substantial improvement in profitability.
“Although operating conditions in the second quarter were challenging, UPS firmly believes the long-term growth fundamentals for our company and for our industry are very favorable,” said Scott Davis, UPS chairman and CEO. “We are helping our customers manage through this difficult period while doing everything we can inside UPS to adapt to current conditions.”

For the three months ended June 30, 2008, UPS delivered consolidated volume of 959 million packages, essentially unchanged from the second quarter last year. Revenue rose to USD 13.0 billion and revenue per piece increased 5.9 pct. Results were negatively affected by a 67 pct increase in fuel expense, a reduction in premium product volumes and weakness in U.S. imports.

The slow U.S. economy caused average daily volume in the United States to decline 1.3 pct in the quarter and also contributed to a more pronounced reduction in premium products than in the previous quarter. Volumes per day declined 6.1 pct for Next Day Air, 2.3 pct for deferred air and 0.7 pct for ground. Consolidated revenue per piece rose 3.1 pct, increasing for all services.

These factors, along with the rapid increase in fuel cost and the impact of the two-month lag in the application of the fuel surcharge, were responsible for the declines in second quarter operating results.
During the quarter, UPS and DHL announced they were working on a 10-year agreement through which UPS would provide air lift for DHL’s express, deferred and international volume within the U.S. and between the U.S., Canada and Mexico.

International results were negatively impacted by higher fuel costs, declining U.S. import volume and slower growth in premium services in the major regions of the world.

Export volume increased an industry-leading 10.2 pct, aided by the calendar effect of an early Easter, which boosted growth rates by approximately 2 pct. However, volume growth slowed significantly through the quarter.

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DHL expands product portfolio in Latin America

DHL introduced the largest two new time-definite express products in 12 countries across Latin America: DHL Express 10:30 a.m. for deliveries to the United States and DHL Express 12:00 p.m. for delivery services within Latin America.

The new morning express delivery services respond to customers’ time-sensitive needs, empowering them with the choice as to when and at what time they want their urgent materials delivered.

These new offerings are now available for customers and businesses sending shipments to major business centers within Latin America and to the U.S. from Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela.

Both products will serve the steady growth of exports from South and Central America which increased by 5 percent in 2007 while the region’s real merchandise imports increased by 20 pct, more than three times the global average in 2007, according to data from the World Trade Organization.

The service guarantees door-to-door, next day or second day delivery of documents and parcels. Additional service features for these services include the latest possible collection times-a clear competitive differentiator-proactive delivery notification by email, delivery guarantee, dedicated operations procedures for priority handling.

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Mexican express market hit by weaker demand

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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Estafeta adds two planes to cargo fleet

Mexican express operator Estafeta is expanding its fleet of cargo planes by adding two Bombardier CRJ jets with capacity of five tonnes, Mexican media reported.

The two new planes will operate on the routes from its San Luis Potosí hub to the northern cities of La Paz and Ciudad Juárez and on the east-west Villahermosa-Guadalajara route. They will replace smaller aircraft previously operated by third-party contractors.

The company’s operations director, Ricardo Becerril, stated that the two additional aircraft would enable it to carry larger shipments over longer distances, while also reducing the number of flights. The express operator currently has a fleet of five B737 cargo planes, which capacity of about 14 tonnes, flying to 12 destinations within Mexico and abroad.

Estafeta said that the two new aircraft were part of this year’s ongoing USD 30 million (EUR 19 million) investment in its air network and infrastructure. The bulk of the investment will go on a runway extension at its hub at San Luis Potosí in central Mexico that will enable international flight operations. Estafeta also plans to add a third small cargo plane, to open a new centre in Mexico City and inaugurate additional sites in Toluca, Morelia, Leon and Guadalajara.

“Although these are times of uncertainty, we are doing everything possible to maintain our programme of investment,” director general José Antonio Armendáriz was cited as saying. “We have always believed that at times of difficulties, investment supports job creation and contributes to the competitiveness of the country.”

Estafeta increased net sales by 13 pct to USD 250 million and carried 25 million shipments in 2007. It is targeting 15 pct revenue growth this year, partly to be generated through a new LTL trucking service covering Mexico and the USA.

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The ZIP code information changes periodically. Since we update our products on monthly basis, we include a low-cost yearly subscription plan that allows customer to download updates anytime within a year. ZIPCodeWorld™ United States Gold PO Box Edition database is available from $99.95 onward. Internet download is available immediately once order approved. Please contact [email protected] or visit http://www.zipcodeworld.com for more information.

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