Tag: UPS

Parcels Losing Weight

Posted by | Sep 10, 2007 | |

It’s nearly two-thirds into 2007 and shippers are still trying to get a handle on how to handle dimensional rate pricing for parcel shipments.

UPS announced the plan late last year and rolled it out in January, granting some shippers waivers that have just ended. FedEx, DHL and even the U.S. Postal Service soon followed suit.

Dimensional pricing is likely to further fade the line between air express and ground parcel service. The new metric also could affect trucking operations and alter freight classification standards as the express and parcel carriers look to bring the disciplines of that side of the business into their growing less-than-truckload subsidiaries.

Whether they take a dim view of the changes or not, shippers are already adjusting their shipping patterns to pare down what could be large cost increases under older standards.

UPS contends dimensional costing offers shippers something they’ve clamored for – a simpler pricing method. Dim-weight pricing, the company says, more accurately reflects the true costs for handling and delivery.

Some industry analysts say the impact of the new pricing standard has yet to be fully felt.

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UPS names new District Executive

Posted by | Sep 10, 2007 | |

David Ruiz, a 29-year veteran of UPS has been named the Vice President of Operations for the company’s Wisconsin District. In his new role, Ruiz will be responsible for more than 5,000 employees, 23 package centers, three distribution hubs and four sorting facilities within the Wisconsin District.

Ruiz most recently managed UPS’s North Europe District, which includes operations in 28 countries ranging from Belgium to Russia. Prior to that assignment in 2005, he served as vice president of operations in the South Carolina District.

Ruiz began his UPS career in 1978 as a loader/unloader in Metro Chicago and became a package car driver in 1985. Since then, he has held various assignments in the U.S., Mexico, Puerto Rico and Europe.

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Truckers ask court to delay hours ruling

Posted by | Sep 7, 2007 | |

U.S. trucking companies have asked a federal court to delay a requirement that would reduce by one hour the time truckers can drive continuously.

The American Trucking Association Thursday requested an 8-month stay from a mandate of the U.S. Court of Appeals for the District of Columbia Circuit. The court had ordered the daily driving limit be cut to 10 hours for long-haul truckers.

The trade group says eliminating the rule effective Sept. 14 would be expensive and require the industry to retrain drivers and operating personnel, reprint logs, reengineer routes and make other changes.

Safety advocates, who applauded the court’s ruling, say the industry is putting the public at risk by allowing truckers to drive too many hours.

The court action’s had followed by a week an ATA petition with the federal government, asking for revisions to 2-year-old regulations on truckers’ hours, which the court had rejected in late July.

The ATA argued for the 8-month stay to give the Transportation Department’s Federal Motor Carrier Safety Administration time to review the court’s ruling and the new rules.

A Federal Motor Carrier Safety Administration spokeswoman did not return a call for comment Friday. After the ATA’s appeal last week, the agency said it was still developing a response to the court ruling but would do so in time for the industry to adapt.
The trade group’s members include United Parcel Service Inc., FedEx Corp., JB Hunt Transport Services Inc. and YRC Worldwide.

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Slower U.S. economy may affect DHL targets-exec

Posted by | Sep 7, 2007 | |

DHL’s operations in the United States are dwarfed by those of rivals Atlanta-based United Parcel Service Inc. and Memphis-based FedEx Corp. Hans Hickler, CEO of DHL USA, said DHL aims to compete with these companies using improved technology and customer service.

While DHL has some room to maneuver on price with its air package delivery service, which is linked to its international network, the company’s smaller ground delivery network has little leverage against FedEx and UPS, he said.

But he added that DHL does “not want to destabilize the market” with dramatic price reductions.

Hickler also said DHL is not interested in following UPS and FedEx in acquiring companies in the less-than-truckload market. Less-than-truckload operators consolidate small loads into a single truck.

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UPS Executive (USA)

Posted by | Sep 4, 2007 | |

Matt Lawrence, a veteran UPS logistician, has become the Federal Emergency Management Agency’s (FEMA) first loaned executive from private industry.

Lawrence, whose nine-month assignment begins today, will report to the newly-created Logistics Management Directorate. According to the Directorate’s assistant administrator, William “Eric” Smith, Lawrence will assist in the evaluation of current disaster logistics processes and will share best-practices from the private sector.

Internal changes within FEMA over the past year drove the creation of the Directorate, where new approaches to disaster logistics management are being explored. Earlier this year, FEMA approached the U.S. Chamber of Commerce seeking commercial expertise. UPS was the only company that stepped up to volunteer an executive. UPS will continue to pay Lawrence’s salary.

Lawrence brings a broad range of logistics knowledge to the agency, specializing in helping UPS customers to evaluate and redesign their supply chains for improved efficiency and responsiveness. His experience includes transportation network management, warehousing, inventory management and distribution. His most recent assignment involved working with healthcare and pharmaceutical companies to improve logistical efficiency, including the development of contingency plans to respond to crises that interrupt the flow of goods.

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