Tag: UPS

UPS says it is working toward a postal reform compromise

Posted by | Oct 2, 2006 | |

A UPS spokesman said Friday that UPS and the U.S. Postal Service had reached a compromise on the single-piece parcel post issue that is holding up passage of postal reform legislation, but claimed that the office of the key senator who is a champion of the cause rejected it.

And late Friday, the spokesman said that UPS would not oppose the postal reform bill as it stood.

The news comes after an 11th hour announcement from the Direct Marketing Association that asked members to write to the Atlanta-based company to persuade them to stop blocking passage of the bill.

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DHL becomes a contender

Posted by | Oct 1, 2006 | |

When considering carriers for overnight express packages, shippers may now have three legitimate options: FedEx, UPS and newcomer DHL Express. DHL commissioned a transit study this summer that demonstrates the carrier is performing as well or better than its veteran U.S. competitors.

The study tracked 14,400 overnight express shipments between 44 major U.S. cities across 480 lanes during July. The results showed UPS and DHL tied at a 90% reliability rate for 10:30 a.m. delivery, followed closely by FedEx at 88%.

“For two or three years, we’ve battled quite a degree of skepticism,” says DHL Americas CEO John Mullen. This study, he says, vindicates DHL’s efforts to break into the UPS/FedEx duopoly. “It has been a difficult road but we have come through it, and we think our customers can feel safe that they are not taking a chance on a niche player with us.”

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TNT re-emerges as possible takeover target

Posted by | Sep 29, 2006 | |

Dutch mail and logistics company TNT has become the subject of renewed takeover speculation after the European Union’s highest court ruled that the Netherlands is breaking the law in owning a “golden share” in the global mail and express delivery company.

The European Court of Justice said the government’s stake, which gives it veto power over TNT’s mergers and acquisitions, is incompatible with the free movement of capital in the 25-nation EU.

The Dutch government has held the stake since the 1980s when the former state-owned post and telephone company was privatized and split into a telecommunications group and a mail operator. The company subsequently expanded into logistics and express delivery.

TNT shares rose 3 percent immediately after the court ruling on speculation that the decision would make it easier for companies such as UPS, FedEx and Deutsche Post to take over the group. La Poste, France’s state-owned mail monopoly, also has been named as a likely suitor.

TNT was at the center of takeover speculation last November when Cornelius Geber, a former executive of Swiss logistics giant Kuehne & Nagel, said he was trying to organize a consortium to launch a bid.

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Express couriers sign up to lobby group

Posted by | Sep 29, 2006 | |

New Zealand’s leading global express courier companies have united to form a new group to work with government regulatory agencies on issues facing the industry.

The Conference of Asia Pacific Express Carriers NZ will be affiliated with similar organisations Capec Asia based in Singapore and Capec Australia. The founding members are TNT, DHL, FedEx and UPS.

Chairman and TNT managing director Ruud Smeets said group members had in the past consulted together and individually with bodies such as Customs and MAF but establishment of Capec would give them a single industry voice.

“International trade is one of the pillars of New Zealand’s economy and our key objective is to ensure the flow of goods is not hindered by government regulations and bureaucracy,” Mr Smeets said.

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New China postal legislation to strike at express sector

Posted by | Sep 28, 2006 | |

The Chinese express industry is facing the same sort of crisis which could strike that of India’s – new regulations designed to protect the national Post Office. The latest legislation being proposed by the Chinese authorities could extend the monopoly of the state owned mail operator China Post to include all domestic deliveries of private letters.

According to the European Express Association (which represents the major express carriers) these moves are a violation of the horizontal rollback provision in China’s WTO commitments.

The industry has suggested a system similar to that in the EU with an initial weight and price definition, along with subsequent reductions in those numbers. Although Chinese officials have said that international express would not be subject to the monopoly because of a special provision, the foreign industry opposes any differentiation in the rules for international and national express operators.

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