Tag: UPS

UPS won't refund surcharge (U.S)

Bowing to high fuel prices, UPS will change its policies on parcel service guarantees next month and no longer include the fuel surcharge in its refunds to customers.
The shift effective Sept. 2 means UPS will only refund the basic charge and whatever other accessorial charges were included in the bill, including pickup and special service charges.
“While nothing changes the ability of our customers to request a refund of shipping charges, we do still make the delivery,” a UPS spokesman said. “So since we still make the delivery, including fueling the truck to get it there, we are going to stop refunding the fuel surcharge fee.”
UPS adds 10.25 percent to its ground parcel bills as a fuel surcharge and will raise that rate to 10.5 percent Sept. 1. The fuel surcharge for air and international package shipments is 34.5 percent.

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UPS to build new Asia hub

The US express service provider United Parcel Service is investing USD 125 million in a new intercontinental airfreight hub in Shanghai (China). The approximately 100,000 sqm facility is scheduled to go into service in November. Over and above this, the CEP service provider wants to start construction work on a USD 180 million hub in Shenzhen (China) for intra Asian flights. This platform should be finished by 2010 and replace UPS’ existing facility in the Philippines. UPS anticipates that it will generate 40 pct of its sales in international traffic in 2010. At present the figure is 25–30 pct. UPS has also announced that it is acquiring a logistics company in China, but it is still remaining tight-lipped about the rumours concerning its supposed USD 20 billion offer for TNT, Europe’s second largest CEP service provider.

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Integrators change course as clients go for ocean transport

This summer, FedEx opened two new gateways on the US West Coast for traffic entering its home market from Asia by ocean vessel. The integrator’s trade networks unit created gateway offices at the ports of Seattle and Oakland for traffic that moves in consolidations to the US and after breakdown is fed into the domestic FedEx network.

The focus on waterborne traffic is indicative not only of the weakness of the US economy and the impact of high oil prices on supply chain costs and strategies, it also shows a change in strategic thinking at FedEx.

Fred Smith said that FedEx was reviewing its strategy in order to position itself better to deal with an expected change in the way how its clientele was doing business. He outlined a new situation, where reliance on aircraft for shorter hauls is diminishing further. Increasingly, customers are cutting back on premium services.

The integrators remain bullish about their international express package business, particularly in Asia. FedEx and UPS are due to open their new Asian hubs in Guangzhou and Shanghai respectively this year.

Elsewhere in Asia, UPS bought out Korea Express’s share in their joint venture to assume full control of its express business in Korea.

According to some unconfirmed reports, FedEx is about to take a giant leap to boost its strength in the market, particularly on intra-European and Asia-Europe trade lanes. The integrator is allegedly seeking to acquire TNT. Both sides declined to comment on what they described as “speculation”.

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UPS issues new sustainability report (U.S)

UPS released its sixth annual Corporate Sustainability Report with progress reports on the company’s economic, social and environmental performance. The report is posted at sustainability.ups.com.

The report is based on data from 2007, UPS’s 100th anniversary. Highlights include safety goals achieved, fuel conserved through technology and increases in global employee volunteerism and charitable giving. Additionally, the 2007 report includes a new Climate Change Statement and establishes 2011 sustainability goals.

“With these new additions, you will see that our sustainability goals and processes are evolving along with our business as we begin our second century,” said Chairman and CEO Scott Davis.

UPS was the first company in its industry to issue a sustainability report and to publicize its specific goals.

UPS pursues a wide range of socially responsible and sustainable business practices designed to reduce its impact on the environment and improve communities around the world. UPS is included in the Dow Jones and FTSE4Good Sustainability Indexes, which evaluate corporations based on economic, environmental and social criteria.

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USPS stats put FedEx & UPS at risk

The number of parcels and packages that postal workers are toting around the country has declined sharply, according to government statistics, opening the prospect of fresh liabilities for the U.S. Postal Service’s private-enterprise rivals, analysts said.

According to the data, challenging economic conditions, the end of stimulus checks, and inflation in fuel prices have contributed to a pronounced sell off in package deliveries. Express mail shipments fell 14 pct in the quarter that ended in June, the most recent data available. Priority mail shipments declined 6 pct in the period. The pullback could have direct implications for FedEx, which has made as much as USD1.2 billion a year flying priority mail packages for the USPS. But there are threats to the franchises of FedEx as well as United Parcel Service (UPS) simply from industry pressures. The USPS data suggested that package shippers have gotten more cost-conscious about their shipping activities. FedEx’s May quarter showed that daily domestic air freight declined about 15 pct, including its priority shipping business. Nevertheless, both FedEx and UPS have ticked up about 1 pct in Wednesday’s trading (27th August).

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