Tag: North America

Parcel shipping: Domestic problems persist for DHL Express USA

Posted by | Oct 3, 2008 | |

DHL Express USA has terminated roughly 80-to-90 percent—or hundreds—of its domestic sales force staffers, LM has learned.

According to an industry source, DHL Express USA will retain somewhere between 80-to-150 U.S.-based sales staff that will now be referred to as “international” sales representatives.

The UPS-DHL contract was originally expected to be finalized by August; industry analysts are suggesting it may take at least another two months.

While market conditions remain challenging for DHL Express USA, the industry source said it is by no means certain that it will exit domestic ground operations.

But a research report by Robert W. Baird transportation analyst Jon A. Langenfeld said that, according to industry contacts, deteriorating conditions could force DHL to more drastically eliminate its U.S. domestic parcel operations.

And Morgan Stanley analyst William Greene wrote in a research note that due to anecdotal reports of extremely large volume declines at DHL it is becoming more difficult to see how DHL can deliver USD 1 billion in annual air revenue to UPS should the deal go through.

Greene wrote that prospects of this deal being consummated are becoming doubtful, adding that DHL’s customers appear to be leaving at a rapid pace, coupled with the fact that the House anti-trust and competitive issue-related hearings could also spike the deal.

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U.S. Postal Service releases new five-year plan

Posted by | Oct 2, 2008 | |

The U.S. Postal Service has released Vision 2013, its new five-year strategic plan that balances near-term priorities with long-term needs to adapt to changing customer needs.
The plan acknowledges that postal customers, and the mailing industry as a whole, are hard pressed by current economic conditions, and that service improvements and cost reductions remain crucial. Vision 2013 offers a broad perspective of what it will take for the Postal Service to succeed in the future, while providing affordable, universal service.
“The customer is at the center of all our efforts,” said Postmaster General John Potter and Board of Governors Chairman Alan Kessler in a joint letter included in the report. “In this time of uncertainty, we see opportunity to buildon a solid foundation. We will continue to invest in the Intelligent Mail® barcode, flexible networks, the new Flats Sequencing System, and other initiatives that promise new gains in service, efficiency and customer value in the years ahead.”
At the same time, Vision 2013 says the Postal Service must listen to what customers have to say as the Postal Service strives to make its products, services, channels and processes more convenient.

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U.S Postmaster General kicks off year-long conservation campaign

Posted by | Oct 1, 2008 | |

Postmaster General John Potter launched a year-long campaign to increase awareness and create results for energy conservation. Potter called on employees, suppliers and partners in the mailing industry to increase efforts to “go green.” His statements came during a special “unplugged” event at Postal Service corporate headquarters, recognizing October as National Energy Awareness Month.
The Postal Service has a stated goal of reducing energy use 30 percent by 2015, he said, a further demonstration of the organization’s commitment to environmental stewardship. Scheduled capital investments will be made annually in energy conservation measures, primarily for lighting and HVAC upgrades.
A national energy management plan is being reviewed by Postal Service leadership, identifying goals and standards for energy reduction and consumption for facility energy management, fleet management, fuel use and energy consumption.

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CEO Fred Smith promises bright future for FedEx, Memphis

Posted by | Sep 30, 2008 | |

FedEx Chief Executive Frederick W. Smith exuded optimism Monday in his USD 40 billion company’s future and Memphis’ place at its epicenter.

The Chairman, President and CEO said it would be hard for FedEx not to double in size as the company strengthens connections to emerging economies from Asia to Brazil.

Smith spoke after an annual meeting at The Peabody in which shareholders torpedoed proposals that would have split his duties and required nonbinding referendums on executive pay.

The proposals advocated by International Brotherhood of Teamsters General Fund and spokesman Louis Malizia won slightly more votes than last year, but failed by a 2-1 margin. Results were announced to an audience of about 150.

The votes came after Smith reaffirmed the company’s position that FedEx Ground drivers are independent contractors, not employees, as Teamsters assert. A class-action lawsuit is pending.

With 33,000 employees in the Memphis area, FedEx is the city and Tennessee’s largest private employer. Its superhub makes Memphis International Airport the world’s largest volume cargo airport.

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