Express delivery is making inroads into Poland and the Baltic States, with new partnerships, services and investment launched in 2004. Established in Poland, DHL, TNT and UPS have been joined by FedEx, which launched direct flights in August. Industry sources estimate that Poland supports a EUR500m-a-year total express market, including courier business worth EUR270m – EUR280m, and the market is expanding rapidly.
Read MoreViews on FedEx, DHL & UPS from traffic managers at US Fortune 500 companies
Executive Summary 3
— Investment Conclusions
P:LibraryUBS AirFreight Survey Dec04.pdf
Customer Relationships 7
— Established Relationships
— Product Usage
— Cross-Selling Success Rate
— Supply Chain and Logistics Relationships
Scorecard 12
— Reliability and Dependability
— Price
— Ease of Doing Business
— Value for Money
Topics of Interest 27
— Who is the Most Aggressive on Price?
— Likelihood of a Price War
— UPS Ground Market Share
— Effectiveness of DHL’s U.S. Ad Campaign
— DHL Service Quality Post-Airborne Acquisition
— DHL Share Post-Acquisition and 2005 Outlook
— Will DHL Be a Major Threat Beyond 2005
— What Does DHL Need to Do?
United Parcel Service Inc plans major investments in China’s fast-growing parcel delivery market as it prepares to part company with its long-time partner Sinotrans, UPS Asia Pacific president Ken Torok said.
UPS, which is paying Sinotrans USD100m to end its relationship, will add 500 more UPS vehicles by December 2006 and build an aviation hub in Shanghai by 2007.
‘We will greatly increase investment in China,’ he said without giving details.
Under the agreement, UPS will take direct control over agency operations from Sinotrans in five major cities by January. It will then add another 18 locations which cover over 200 cities by the end of next year.
Read MoreUPS today announced an agreement with Sinotrans to take direct control of its international express operations in China’s largest and most important cities by the end of 2005. The agreement, signed on Dec 1, requires a payment of USD100 million by UPS for the transfer of operations in 23 cities across China. Operations in those 23 business centers extend service to an additional 200 cities, which account for more than 80 percent of China’s gross domestic product. Starting in January of 2005, UPS will take direct control of operations in five locations: Shanghai, Guangzhou, Shenzhen, Tianjin and Qingdao. By December 2005, UPS will assume control over its express operations in 18 additional locations, and have a total of 1,700 employees.
Read MoreAbout 3,800 United Parcel Service workers in Canada went on strike yesterday, refusing the shipper’s new collective bargaining agreement offers, according to Teamsters Canada. UPS said it would deliver all packages already in transit but suspended all customer pickups within Canada as well as ground shipments into the country. The Canadian employees’ contract expired July 31. UPS met with the union during the past five months, and Canadian Teamsters management entered into a handshake agreement about a month ago.
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