Tag: UPS

DHL considers U.S. future

Posted by | Jan 16, 2008 | |

Deutsche Post will likely unveil plans for its problem-plagued DHL business in the United States on March 6, say analysts.

When the German parent company releases its earnings report, losses are expected for the express unit which lags behind UPS and FedEx in the U.S. market.

In December, Bear Stearns called for the German parent company to “back away from U.S. domestic express.” In last month’s report, Bear Stearns analyst Andrew Beh called on Deutsche Post management to “reconsider its strategy to become a global express operation offering international and domestic service in all major markets under an integrated brand and service umbrella.”

This month another investment analyst, Morgan Stanley, also made a rare direct call for a DHL pull out, saying Deutsche Post needed to make the move in order to make its own financial projections.

Deutsche Post and DHL say they remain committed to their U.S. operations.

“The U.S. is an important market in our commitment to offer a truly global service network,” DHL said in a statement. “As the world’s leading Express and Logistics company, the U.S. is strategically important to the Group both as a stand-alone market and as a high-performance extension of our global service platform.”

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UPS to open Shanghai cargo hub in November

Posted by | Jan 13, 2008 | |

United Parcel Service Inc. in November plans to touch down on a new 1 million-square-foot air cargo hub in Shanghai. It will be the first U.S. cargo carrier to open a hub in the burgeoning China market.

UPS remained tight-lipped on the cost of the facility at Pudong International Airport, but said it has invested about USD 600 million in China in the past five years.

The new hub, plans for which were announced last spring, is expected to employ more than 1,000 by 2010 and serve cities in China as well as the United States, Europe and other parts of Asia.

UPS now operates from leased space at the Shanghai airport, which it shares with other freight carriers. The hub, which will include office and warehouse space, will give UPS greater control over operations — allowing the carrier to employ its own workers and schedule flights as needed.

While UPS may be the first U.S. carrier to open an air hub in China, it won’t be the only one for long.

FedEx Corp. is building an air hub in Guangzhou, China, scheduled to be completed by December.

UPS declined to disclose how much of its revenue comes from China, but said its export volume from the country was up more than 25 percent in the first nine months of 2007 compared with the prior year.

UPS, which became the first wholly owned foreign express carrier in China, serves more than 330 Chinese cities representing 85 percent of the country’s international trade activity.

The company has grown its China workforce to more than 4,500 employees while developing logistics infrastructure that includes more than 60 distribution centers.

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UPS Freight announces 2008 rate adjustment

Posted by | Jan 11, 2008 | |

UPS Freight announced a general rate increase averaging 5.4 percent covering non-contractual shipments in the United States and Canada.

The increase goes into effect on Feb. 4, 2008, and applies to minimum charge, LTL and truckload (TL) rates.

“We are continuing to improve service to our customers and to provide the latest technology,” said UPS Freight President Jack Holmes. “On Jan. 1, UPS began offering on-time guarantees at no additional charge to customers on the current base UPS Freight tariff for shipments moving within the continental United States.”

Also beginning this month, customers can process both package and LTL shipments in the UPS WorldShip® system, an enhancement that’s already exciting customers, Holmes added. In addition to being able to create a Bill of Lading (BOL) for LTL shipments, UPS WorldShip users can send e-mail notifications, save BOL’s for later completion, import commodities and view their negotiated rates.

UPS Freight, the over-the-road heavy freight division of UPS, offers a full range of regional, interregional and long-haul LTL and TL capabilities in all 50 states, the Virgin Islands, Puerto Rico and Guam along with comprehensive cross-border service in Canada and Mexico.

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UPS volume no longer seen as long-term gauge

Posted by | Jan 10, 2008 | |

UPS’s shipping volumes used to be a good indicator of how the economy would be doing down the road — but no longer thanks to changes in how its business customers operate, the package shipper’s top executive said Wednesday.

D. Scott Davis, who became CEO and chairman of the package shipper on Jan. 1, told attendees of a Metro Atlanta Chamber of Commerce breakfast that fluctuations in the company’s fortunes once foreshadowed the economy’s direction.

But its volume has become more of a real-time indicator in recent years as many retailers and other shippers have switched to so-called “just-in-time” operations to reduce their inventory levels, said Davis, who is also vice chairman of the Federal Reserve Bank of Atlanta.

Davis declined to disclose recent trends in UPS’ shipments, but said the risk of a recession has increased after retail sales growth over the Christmas shopping season dropped to its slowest rate since 2002. UPS will report its fourth-quarter financial results at the end of this month.

Separately, UPS said Wednesday it will repurchase up to USD 10 billion in company stock within the next two years, and it has decided it will take on greater debt to allow it to make more investments in its business.

UPS said its board of directors has authorized an immediate increase in the amount of funds available for stock repurchases from roughly USD 2 billion to USD 10 billion. It added that the repurchases may take the form of an accelerated share repurchase program, open market purchases or other unspecified methods.

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UPS rises on upgrade to 'Outperform'

Posted by | Jan 10, 2008 | |

Shares of United Parcel Service Inc. rose last Thursday 09 January after a Bear Stearns analyst upgraded the stock, citing a slew of catalysts for long-term growth including current troubles at rival FedEx Corp.

Analyst Edward Wolfe raised his rating on UPS to “Outperform” from “Peer Perform,” saying the company is well positioned to grow once the domestic economy begins to improve.

He expects the company to steer guidance lower in the next few quarters as domestic freight demand remains weak and pricing stays competitive. But a settled Teamster contact, changes in senior management, and rival FedEx Corp. ‘s ground unit woes should all benefit UPS in the long-term, Wolfe said.

The company signed a five-year contract with the Teamster union in late November. In December, former Vice Chairman and Chief Financial Officer Scott Davis took the reigns as chairman and chief executive, replacing retiring Mike Eskew.

The company also announced a change to the top post of its Asia Pacific unit Tuesday, in which Ken Torok will be replaced by Senior Vice President Derek Woodward.

Wolfe said FedEx should continue to lose business to UPS as troubles at its ground unit could lead to higher costs and slower growth. He reduced his 2009 earnings expectations for FedEx Corp. by about 5 percent, but left his 2008 expectation unchanged.

Shares of UPS rose USD 2.76, or 4.1 percent, to USD 69.47 in midday trading, while FedEx shares gained USD 1.40 to USD 84.14.

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