Tag: UPS

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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CPL – Daimler switches from international express to deferred deliveries

Posted by | Oct 2, 2008 | |

Daimler aims to switch more of its international express shipments to deferred products to save on cost while ensuring reliable transit times.

Over the last two years, Daimler has centralised its CEP planning and procurement in the Stuttgart head office. Previously this was handled at local level, resulting in deviance from global standards and agreements, and a lack of transparency, Pomberger explained.

In order to offer CEP shipping across the entire group of brands and subsidiaries, Daimler has created its own intranet tool under the name of “CEPRIS”, integrating all agreements and negotiated rates with the four integrators for delivery of documents and parcels up to 70kg. This also provides one single database for reporting purposes. “CEPRIS is a key success factor,” Pomberger emphasised.

At the same time, the automotive group has defined its international CEP requirements into four service levels: economy, offering reliable transportation; next-day express by 09:00 and 12:00; and special services/urgent deliveries, he said.

For the first three service levels, Daimler works with all four integrators, “trying to use their regional strengths around the world”, Pomberger said. The company is looking into adding another service provider, he added. “I’m sure we will add one or more company to our portfolio in future,” he said. For urgent shipments, Daimler uses DHL, time:matters, TNT and World Courier.

Daimler is now actively trying to steer more of its CEP traffic flows from express to economy delivery, Pomberger said. “We need greater flexibility and economical alternatives for less urgent shipments,” he declared. “(Our) demand for economy services is growing.” The company was under “ enormous cost pressure” and needed “competitive” rate levels, he noted.

In addition, the automotive group needed its CEP providers to ensure reliable transit times, high quality reports and service offers focused on Daimler’s needs. “CEP firms often offer products and services that do not fit our needs,” he criticised. “I do not always have the feeling that the integrators listen to our needs.” But he stressed that overall Daimler had “good service levels” around the world from its providers.

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UPS tests zero-emission vehicle in the UK

Posted by | Oct 1, 2008 | |

UPS is currently trialling an eco-friendly, zero-emission delivery vehicle in central London that is powered by electricity, manufacturer Modec ZEV said.

The carbon-neutral van has been tested on routes in north-west, east and central London in recent months. On average, it makes 49 stops and covers some 18 miles per day, using only about 25 pct of its battery capacity.

The vehicle is the first of its kind to effectively harness the power of modern, high energy batteries to meet the medium-range, high performance requirements of urban delivery vehicles, Modec ZEV said.

UPS operates the largest private alternative fuel fleet in the transportation industry, including over 1,600 hybrid electric, CNG, LNG and propane-powered vehicles.

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CPL – B2C will drive European express growth

Posted by | Oct 1, 2008 | |

B2C deliveries will be the major growth market for the European express and parcels industry in the next few years along with international deferred shipments as customers downtrade from premium express to slower but cheaper products, the Courier and Parcel Logistics conference in London was told.

Home deliveries will grow strongly as consumers increasingly shop on the internet instead of in the high street, but issues surrounding “final mile“ deliveries will continue to pose operational challenges, senior industry managers said on the event’s opening day.

Speakers agreed that the B2C market would move towards segmentation between premium deliveries of higher-value goods and standard delivery of lower-value items. However, there was little customer take-up of parcel collection and drop-off points so far, they commented.

Addressing market trends, speakers said that the world economic slowdown and recent financial markets turbulence would impact on business. The express industry would see fewer shipments and more bundling of volumes from financial customers, while customer relationships were being shaken up by the rapid changes in the financial sector. More generally, operators needed to right-size their networks, remove excess capacity but not endanger their customer service levels.

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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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