Tag: North America

Deutsche Post sees DHL breaking even in U.S. in 2-3 years

Posted by | Dec 5, 2006 | |

Deutsche Post expects its DHL Express business in the United States to break even in two to three years as it takes on larger U.S. rivals UPS and FedEx.

The company wants to achieve a return on sales of 3 to 5 percent at the U.S. business in the mid to long term, DHL Express head John Mullen said at a capital markets day in New York on Tuesday.

“The United States is a long, hard road,” Mullen said. “I think we are making good progress. At the moment, our focus is clearly to break even.”

The company had previously said it did not expect DHL Express to break even in the U.S. before 2009.

Shares in Deutsche Post rose 3.6 percent to 23.35 euros following Mullen’s comments, making them the second-best performers on the German DAX index.

Deutsche Post is struggling with losses at DHL Express in the United States as it tries to boost its presence in a market dominated by FedEx and UPS. Deutsche Post has expanded into new markets, in particular through its DHL logistics and express delivery divisions, as it prepares to lose its domestic mail monopoly.

Mullen said the 3 to 5 percent return-on-sales target for DHL Express in the United States was “hardly on the radar screen,” but added: “It’s there as an aspirational goal.”

The company is aiming to achieve an eventual return on sales of 10 percent across DHL Express worldwide.

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FedEx raises ground, home delivery rates by 4.9 percent

Posted by | Dec 5, 2006 | |

FedEx Corp. (NYSE: FDX) will increase standard list rates for FedEx Ground and FedEx Home Delivery shipments by an average 4.9 percent on January 1.

Rival United Parcel Service Inc. (NYSE: UPS) will raise list rates by 4.9 percent for ground shipments and 4.9 percent for air express shipments, when factoring in a 2 percentage point reduction in fuel surcharges.

FedEx announced last month that rates for its FedEx Express shipments in the United States and for export will increase by 3.5 percent at the first of the year, when a decrease in fuel surcharges of 2 percentage points is factored in.

The company also will begin adding other transportation-related surcharges, such as those for rural or home delivery, to total costs before figuring fuel surcharges on FedEx Ground shipments.

In February, FedEx Ground will begin using a “dimensional weight system” for figuring rates on large but relatively lightweight packages, rather than relying on weight alone.

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US Direct Mail Spending Forecast Sees 7.5% Icrease

Posted by | Dec 5, 2006 | |

It may be the Internet age, yet consumers should expect old-fashioned direct mail to keep clogging their mailboxes. Marketers’ spending on direct mail will swell 7.5% to USD64 billion next year after growing 8.5% this year, according to respected ad forecaster Robert Coen, who on Monday presented his industry-wide 2007 look-ahead at the annual media conference hosted by UBS. That means direct mail will continue to be one of the fastest-growing ad formats. “More and more mail advertising is being used … and all of this despite the fact that postal rates went up about 5%,” says Coen, forecasting director at media buying agency Universal McCann. Part of its allure, he says, is that it’s easy for marketers to track response rates compared with, for example, a 30-second TV ad. As for the ad spending outlook overall, both Coen and fellow ad forecaster Steve King, CEO of rival media-buying company ZenithOptimedia, say they expect U.S. spending growth to slow in 2007. Coen sees total ad spending next year rising 4.8% to USD298.8 billion. King forecasts 4.2% growth and a total of USD280.2 billion.

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DHL Express announces appointment of Keith Lovetro as Executive Vice President of Marketing for its U.S. operation

Posted by | Dec 4, 2006 | |

DHL Express today announced the appointment of Keith E. Lovetro, as Executive Vice President of Marketing for its U.S. operation. In his new role, Lovetro will be responsible for the company’s key marketing functions. Lovetro reports to Hans Hickler, Chief Executive Officer, DHL Express USA, and is a member of the Express U.S. Management Board.

“Keith is a seasoned industry veteran with the skills and in-depth knowledge of our industry that will be critical as we build on the momentum DHL Express has accomplished in the U.S.,” Hickler said. “Keith brings a strong track record of accomplishment to his new position and deep experience in development of sound go-to-market strategies that will serve us well in 2007 and beyond.”

Lovetro began working in the transportation industry in 1980 for C.F. Airfreight. He gained additional experience working at Emery Worldwide, Amdahl Computers and most recently spent 12 years in various positions of increasing responsibility at FedEx Freight West. Lovetro was most recently President and Chief Executive Officer of FedEx Freight West, based in San Jose, Calif. He received a Master of Business Administration degree from Santa Clara University and a Bachelor of Arts degree from the University of California at Davis.

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FedEx Ground to increase 2007 rates 4.9 percent

Posted by | Dec 4, 2006 | |

FedEx Corp. today announced that it will increase the standard list rates for FedEx Ground and FedEx Home Delivery by an average of 4.9 percent. The new rates and surcharge changes will be effective Jan. 1, 2007.
The announced increase is in addition to other changes to FedEx Express, FedEx Ground and FedEx Home Delivery surcharges. These changes include an adjustment to the fuel surcharge for FedEx Ground shipments which will be assessed on additional applicable transportation-related surcharges.
FedEx Corp. previously announced an increase to the net average shipping costs for FedEx Express by 3.5 percent, which is composed of a 5.5 percent average increase in standard list rates, offset by a 2.0 percent point reduction in its fuel surcharge. These rates are also effective Jan. 1, 2007 and apply to U.S. domestic and U.S. export packages and freight.
FedEx also previously announced a new dimensional weight system for oversized, large FedEx Ground shipments. If the dimensional weight is greater than the actual weight, dimensional weight will apply to FedEx Ground shipments that are three cubic feet (5,184 cubic inches) or greater. A FedEx Ground dimensional weight customer aid is available on fedex.com to assist customers. This will be effective Feb. 5, 2007. Complete details on the FedEx Ground and FedEx Home Delivery surcharge changes will be available at www.fedex.com on Dec. 8, 2006.

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