Tag: USA

US Postal Service plans to overhaul delivery network

The U.S. Postal Service plans to close dozens of facilities across the country as part of a major reorganisation, a move that could save millions of dollars and create a more flexible postal network. But the plan is certain to spark a fresh round of bickering with the agency’s strong labor unions.
Last month, the agency released a plan for overhauling its delivery network. The so-called network report calls for closing airport mail facilities, consolidating bulk mail centers and streamlining the computer software that maps postal routes. The closures could lead to the elimination of hundreds of jobs and more outsourcing.
Postal officials say the changes will help revitalize a decades-old network.
The first facilities to close under the network plan are the airport mail centers (AMCs), which transfer mail between distribution centers and commercial airlines working under contract with the Postal Service.
Up until a few years ago, the Postal Service had mail contracts with more than a half-dozen carriers at many airports, and the centers were hubs of activity. But the agency has consolidated its contracts: At many airports, only one or two carriers handle mail. That means less work for the AMCs.
The Postal Service is also trying to ship less volume through the airlines because of rising fuel costs and increasing delays at many airports.
The Postal Service has closed 54 AMCs under a consolidation plan dating back to 2006. Williamson expects “a few” AMCs to keep running, but he couldn’t say how many or which ones. The agency expects to save USD 117 million between now and 2009 through reduced work hours and lease expenses.
And now the agency is starting another round of consolidations at its 400-plus mail processing facilities. The Postal Service will spend two years soliciting expert study and public opinion to decide which facilities to close.

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ABX Air aims for smaller but more profitable post-DHL future

ABX Air is planning for a post-DHL future based on a smaller but more profitable business with other customers.
Joe Hete, President of the airline’s parent company Air Transport Services Group (ATSG), told analysts and investors in a conference call that the company still believed it could offer DHL a competitive model compared to the planned DHL-UPS cooperation, and warned that the connection of the two global air express networks could prove “expensive and challenging”.
Admitting that the transition from DHL operations would not be easy, Hete commented: “We expect ABX to grow and prosper without DHL.” DHL currently accounts for about 74 pct of ABX Air revenues.
ABX Air had already been diversifying its customer base for several years and was well-positioned to place the B767 fleet with other customers on a wet-lease or dry-lease basis, Hete said. About half of the DHL-dedicated B767s could be placed with other customers, he added. Key customers include USPS, the US military and freight forwarder Schenker BAX.
CFO Quint Turner noted that ABX’s activities for DHL had been “low-margin business” and stressed that the company believed it could generate a higher return on capital from other customers. Although ABX has a ‘put’ option to return aircraft to DHL, the planes have a low book value, and higher prices might be achievable if the planes were sold on the open market, executives noted.
ATSG is also talking with DHL about severance packages for ABX pilots and aircraft mechanics.

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DHL expands product portfolio in Latin America

DHL introduced the largest two new time-definite express products in 12 countries across Latin America: DHL Express 10:30 a.m. for deliveries to the United States and DHL Express 12:00 p.m. for delivery services within Latin America.

The new morning express delivery services respond to customers’ time-sensitive needs, empowering them with the choice as to when and at what time they want their urgent materials delivered.

These new offerings are now available for customers and businesses sending shipments to major business centers within Latin America and to the U.S. from Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela.

Both products will serve the steady growth of exports from South and Central America which increased by 5 percent in 2007 while the region’s real merchandise imports increased by 20 pct, more than three times the global average in 2007, according to data from the World Trade Organization.

The service guarantees door-to-door, next day or second day delivery of documents and parcels. Additional service features for these services include the latest possible collection times-a clear competitive differentiator-proactive delivery notification by email, delivery guarantee, dedicated operations procedures for priority handling.

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USPS restructures major functions

In a dramatic realignment of several of its core functions, the Postal Service moved to position the organization to capitalize on new competitive opportunities and significantly enhance the vision of its customer outreach.
The realignment creates two new strategic focal points, the first grouping all major shipping and mailing products in one division, and the other, representing the voice of the customer, giving priority to the interests of business and individual mailers. The realignment also consolidates all Intelligent Mail Barcode activities under the chief operating officer to focus on execution in the year ahead.
A law enacted in the closing days of 2006 (the Postal Accountability and Enhancement Act of 2006) streamlined the way the Postal Service sets prices and added certain flexibilities in the pricing of its shipping (package) services enabling it to become more competitive with private shipping companies.
With the changes, Potter today announced the following senior executive appointments:
• A corporate leader with more than 30 years of private sector experience, Robert F. Bernstock, has been brought on to be President of the newly created Shipping and Mailing Services Division. He will serve as Division President. Reporting to him will be a newly created position, Senior Vice President of Mailing Services, as well as the current Vice Presidents of Expedited Shipping, Ground Shipping and Sales.
• Supporting Bernstock will be a new senior Vice President for mailing services, David Shoenfeld, who formerly served as senior Vice President of Worldwide Marketing for Federal Express.
• Stephen Kearney, a current officer, will lead Customer Relations as a senior Vice President. This group will centralize the key consumer and business customer relationships, external and internal communications, as well as integrating pricing into a single unit.

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DHL and TNT boost association of European airlines’ membership to 35

From 1st July 2008, the Association of European Airlines expands its horizons, following the decision of the AEA Presidents’ Assembly in May to welcome the express cargo carriers TNT and DHL, as AEA’s 34th and 35th airline members.

The accession of DHL’s European airlines (European Air Transport and DHL Air UK) and TNT Airways to AEA membership will bring still one more dimension to the Association. The express air carriers’ business model integrates different modes of transport into one system; it is based on network planning and coordination centred around one or more hub airports to which express freight is forwarded either by road or by air.

DHL traces its origins to the early 1970s in the US, but with expanding worldwide operations, Deutsche Post World Net bought the company in 2002. DHL has its main European operating hub at Leipzig in Germany, from where it operates regular direct daily services to 30 European destinations, as well as services to Africa and the

Middle East. DHL airlines operate 33 Boeing 757s and 18 Airbus A300s for the DHL Express network to every major city in Europe.

TNT Airways, founded in 1999, is a Belgian licenced air carrier based in Liège. Its parent company, TNT n.v. has its headquarters in the Netherlands. From its Liège hub, TNT operates 47 aircraft (B747s, A300s, B757s, B737s, BAe146s) to more than 70 European destinations and has traffic rights to 12 intercontinental destinations. For long haul transport, the company also has agreements with commercial passenger airlines.

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