Tag: North America

USPS grows international business

Posted by | Oct 8, 2008 | |

USPS is expanding its international business and is poised to gain additional commercial freedom to negotiate rates with air suppliers in order to reduce transportation costs.

In 2007, USPS increased its international revenues by 13.5 pct to USD 2,036 million, which represented 2.7 pct of its overall USD 74,973 million revenues. Volumes increased 5 pct to 833 million pieces. Packages have grown in recent years and last year represented 59 pct of international revenues, or USD 1,201 million, compared to 38 pct of international revenues in 2000.

Customers, especially small businesses, were seeking cheaper alternatives to the global express companies, Paul Vogel, Managing Director global business and senior vice-president said. “

Last year’s product simplification and re-branding in line with domestic products, improved IT tools such as tracking and tracing, as well as growing online shipping had also increased international business.

Although the depressed US economy was impacting on USPS’ domestic business, and especially mail business from the financial sector, the weak dollar was encouraging more international business, Vogel pointed out. European customers, for example, were doing more online shopping with US websites.

In a significant development, USPS expects soon to gain commercial freedom to negotiate air transportation rates with airlines, Vogel disclosed. Until now, it has had to pay fixed tariffs, which represent about one third of its international supply chain costs. The House of Representatives had recently passed legislation to deregulate tariffs, and the legal change was now awaiting presidential approval, he pointed out.

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UPS joins EPA's Climate Leaders program

Posted by | Oct 7, 2008 | |

As part of its continued commitment to sustainable business practices, UPS announced its participation in the U.S. Environmental Protection Agency’s Climate Leaders program.

UPS is the first shipping company to join the program.

Climate Leaders is an industry/government partnership that works with companies to develop comprehensive climate change strategies. Partner companies commit to reducing their impact on the global environment by completing a corporate-wide inventory of greenhouse gas emissions, setting aggressive reduction goals and annually reporting their progress to the EPA.

UPS has been a long-time partner of many voluntary programs sponsored by the EPA. These include a charter partner of the SmartWay Transport Partnership program in 2003, the Green Power Partnership, Waste Wise and the Energy Star program. Later this week, UPS will receive the EPA’s SmartWay Environmental Excellence Award for its leadership in conserving energy and lowering greenhouse gas emissions.

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Canada Post Chosen As One Of Canada’s Top 100 Employers

Posted by | Oct 6, 2008 | |

Canada Post has again been chosen as one of Canada’s Top 100 employers by Mediacorp, which selected the 100 out of 16,000 companies invited to participate. This was after Mediacorp reviewed recruitment histories for nearly 75,000 Canadian firms before deciding whom to invite.
“On behalf of our 72,000 employees, I’m very proud that Canada Post has been recognized as a top 100 employers for the third year in a row,” said Moya Greene, President and CEO. “Being among the Top 100 helps us compete with the best corporations in Canada and likely the world.”
To be included in the Top 100, companies have to show their quality in terms of physical workplace; work and social atmosphere; health, financial and family benefits; vacation and time off; employee communications; performance management; training and skills development; and community involvement.

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DHL 'Mistakes' Make USD 3B Loss Unsustainable

Posted by | Oct 5, 2008 | |

Addressing the U.S. House of Representatives Committee on the Judiciary, DHL CEO John Mullen cited constraints on foreign investment in U.S. airlines as a reason for the express operator’s USD 3 billion losses since 2003.

Currently, U.S. law limits foreign ownership of American air carriers to a 49 pct equity interest and a 25 pct voting interest and with DHL losing USD 5 million a day Mullen said the situation had become “unsustainable.”

In an attempt to integrate the unusual structure of DHL – U.S. ownership of the domestic lift and foreign control of the international operations – Deutsche Post World Net (DPWN) acquired DHL International in 2002 and Airborne Express in 2003.

In order to comply with U.S. law, DHL was then required to divest itself of Airborne’s air operations (ABX), leaving DHL Express to operate ground operations only in the U.S.

So while it may have been one brand, the new DHL has remained several distinct components – including air capacity provided by ABX and ASTAR. Mullen acknowledges that the inability to control its U.S. capacity has resulted in a “substantial cost disadvantage” compared to FedEx and UPS.

In the five years since acquiring Airborne, DHL has invested USD 0.9 billion in its Wilmington, Ohio hub in order to integrate the ground operations of the former DHL and Airborne into a single air express provider.

So when UPS came calling with a more cost-effective solution to DHL’s domestic lift, Mullen and DPWN CEO Frank Appel decided to call “time” on the Wilmington hub operation and its capacity contracts with ABX and ASTAR.

However Mullen denied as “false” claims that DHL is abandoning its Wilmington Air Park facility after accepting more than USD 400 million in incentive benefits from the State of Ohio: “DHL was induced to consolidate operations at the Air Park, rather than in Northern Kentucky, in part by the offer of incentives that the State has valued in excess of $400 million.

DHL says it will provide more than USD 260 million in severance, retention, and health benefits for the workforce in Wilmington, including funding the severance and benefits programs of the ABX and ASTAR Employees.

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