Tag: UK

DX Group – Royal Mail VAT advantage stifles competition (UK)

The DX Group has reminded Postcomm that the VAT exemption applied to Royal Mail is, in their view, continuing to stifle competition.

In response to Postcomm’s Strategy Review, Michael MacClancy, Head of Regulation at DX said:

“Royal Mail’s VAT exemption will continue to tip the playing field against end to-end entrants for the foreseeable future. The VAT exemption extends to positive discrimination in favour of so-called access competition over end-to-end competition. If consolidators such as TNT and UK Mail use Royal Mail for final delivery then they can take advantage of the recently introduced agency agreements to minimise VAT liability for their customers. If they use another operator (such as DX) they must charge VAT.”

“The VAT exemption not only places entrants at a disadvantage in comparison with Royal Mail, it also gives TNT and UK Mail an advantage in comparison with other operators. Furthermore, as we have argued previously, access is a very limited form of competition with limited economic benefits. If Postcomm really does wish to create the right conditions to enable a further withdrawal of sector specific regulation it will have to find a way of promoting end-to-end competition that will apply pressure along the whole of Royal Mail’s value chain.”

“Postcomm should avoid further tilting of the market towards the access model. We note that there are substantial differences between the postal markets of the UK and USA, not least of which are the statutory monopoly over delivery enjoyed by USPS and a workshare pricing mechanism that appears to leave USPS with a considerably higher proportion of the revenue than the UK equivalent.”

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Gala awards celebrate strength of PalletForce network

PalletFORCE’s sixth annual Gala Awards Dinner on Saturday 12th April highlighted the strength of the Network, with a record number of Member Depots being recognised for their contribution.

Held at the Royal Lancaster Hotel in London and attended by 430 Shareholder Members and staff, the event rewarded the Network’s outstanding performers over the past year.

The event’s top prize, PalletFORCE Depot of the Year, was this year renamed as the PalletFORCE Depot of the Year – The Robert Bedford Award in honour of the Bedfords Transport Depot Principal and PalletFORCE Non-Executive Director, who died in 2007. The award was won by Edwin C Farrall & Sons for the fourth time.

Ge-Be Transport was voted Members’ Depot of the Year, whilst the Sales & Marketing Award was won by Owens Road Services. The Members Service Committee Award went to White Logistics.

A new category, Networkers of the Year, singled out twelve Member Depots who, in the opinion of the Network, had ‘shown a true Network spirit and had gone that extra mile’ over the past twelve months. Those chosen were Horley Road Services, UK Freight Masters, Alan Firmin Ltd, Freightforce, Online Roadways, JBT Ltd, White Logistics, Price Express Transport, Beattie Bros Transport, R G Bassett & Sons, John Jempson & Sons Ltd and Abacus Transport

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City Link confirms commitment to major customer with new joint liveried trailer

City Link has reinforced its ongoing commitment to Karndean, a flooring supplier, with the presentation of a joint liveried trailer.

The eye catching vehicle serves to raise the profile of both companies. City Link will use it to deliver Karndean’s design flooring to retailers and commercial contractors across the country.

Stuart Godman, City Link’s Sales and Marketing Director, said: “We have been working closely with Karndean over the past three years to deliver a quality service to flooring customers. This liveried trailer is a sign of our commitment to continue this successful partnership and maintain a high standard of service.”

Karndean’s Operations Director, John Wright, commented: “City Link has played a key role over the past three years in supporting Karndean’s commitment to quality customer service. We look forward to continuing this partnership and using this trailer to meet the needs of our valued customers. ”

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DHL and Borderlinx partner to simplify international e-commerce

Delivery and logistics company DHL International GmbH and U.K.-based Borderlinx, a company that helps businesses ship goods from a number of suppliers, have partnered to assist U.S. e-retailers selling internationally. The deal aims to make it easy for U.S. e-retailers to ship abroad, and for foreign consumers to know how much they will pay for shipping.

Under the agreement, U.S. online retailers can integrate directly with Borderlinx to make their products available to the international marketplace. The integration provides web merchants with such services as order fulfillment and warehousing and shipping and delivery services out of DHL’s primary ground hub in Wilmington, OH, to any of the 225 countries and territories to which DHL ships. The hub location allows easy access to international flights, as well as late cut-off times for orders, according to DHL.

The five-year deal is aimed squarely at what Borderlinx founder Neill O’Sullivan says is huge demand among international consumers to shop U.S. e-commerce sites. Only a small percentage of the top 500 U.S. Internet retailers ship internationally, and O’Sullivan says the deal removes two key barriers preventing U.S. e-retailers from doing so—the inability of U.S. online retailers to easily sell and ship to foreign consumers, and the reluctance of an international shopper to complete a purchase without knowing the shipping fee.

When a U.S. merchant ties into the U.S. DHL/Borderlinx platform, consumers from abroad will see an international shipping button during the checkout process. A click of that button passes the transaction to Borderlinx, which calculates the total cost of getting the order from the merchant to the international customer, including the product price, the shipping costs and a Borderlinx service charge of about 10% of the product price.

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