Tag: USA

TNT Says Fuel, U.S. Economy Haven't Hurt Express Unit

Posted by | Jun 19, 2008 | |

TNT said rising fuel prices and the slowing U.S. economy aren’t hurting its express-delivery division. ‘TNT is coping well with the uncertainty in the economy,’ Marie-Christine Lombard, head of the Hoofddorp, Netherlands-based company’s TNT Express unit, said today at a press briefing in Liege, Belgium. There is ‘so far no impact.’

Jet fuel prices in northwest Europe have risen 42 percent this year, Bloomberg data show. TNT’s Memphis, Tennessee-based competitor FedEx Corp., the second-largest U.S. package-shipping company, posted its first quarterly loss in 11 years yesterday and projected earnings that fall short of analysts’ estimates as fuel costs rise and the country’s slowing economy curbs demand.

TNT is transporting as much as possible by road rather than air, helping to hold back costs as prices for diesel fuel rise more slowly than for jet kerosene. The company’s U.S. business makes up only 2 percent to 3 percent of total express-delivery volumes. TNT isn’t planning to expand its operations within the world’s largest economy, Lombard said today. ‘We’re not a big player intra-U.S.A. and we don’t plan to be one,’ she said.

TNT, which operates a fleet of aircraft for its express-delivery network, is considering forming a partnership with cargo airlines to use their freight space on some routes, Lombard said. Such an alliance would probably be a ‘commercial’ agreement and not involve a capital investment, she added.

Bonn-based competitor Deutsche Post AG’s DHL express-delivery unit and Deutsche Lufthansa AG, Europe’s second-biggest airline, set up the AeroLogic cargo joint venture this year. The business will fly freight and express mail from Germany to Asia and the U.S. starting in 2009, stepping up competition with TNT as well as U.S. rivals United Parcel Service Inc. and FedEx.

TNT will invest in new aircraft in the event that there is sufficient shipment volume that requires additional capacity, according to Lombard.

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USPS sponsor ‘eBay Live!’

Posted by | Jun 19, 2008 | |

The U.S. Postal Service has one question for the anticipated 10,000 small business owners attending eBay Live! 2008 in Chicago: “What are you paying for shipping?”

The Postal Service is the title sponsor of eBay Live! 2008. Through a series of workshops, labs and presentations, attendees discover new strategies, share business solutions and network with other online sellers. The conference is set for June 19-21 in Chicago.

Postal Service employees are on hand to explain new pricing opportunities in domestic, international and online services, working with the theme, “What are you paying for shipping?” Online savings, volume discounts and competitive prices could bring savings as high as 11 percent for eBay shippers, according to the Postal Service. Two international power sellers will demonstrate international shipping options.

All Express Mail and Priority Mail customers can save money simply by going online to purchase postage, including customers using Click-N-Ship at usps.com. Express Mail customers will receive 3 percent off the published retail prices and Priority Mail customers will save an average 3.5 percent.

The Postal Service also is working on a payment solution that allows eBay buyers and sellers to stay on the eBay website to complete financial transactions or print Postal Service shipping labels online. Customers will no longer have to migrate to the PayPal site to conclude business, a convenient solution Anita Bizzotto, Executive Vice President and Chief Marketing Officer at USPS, said will be available at the end of August.

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US Postal Service Federal Credit Union Outsources ATM Locations to Select-A-Branch ATM Network

Posted by | Jun 18, 2008 | |

Select-A-Branch ATM Network (“S-A-B”) announced that the US Postal Service Federal Credit Union (“USPS FCU”) has outsourced five branch ATM locations to S-A-B. In addition, USPS FCU has now joined the S-A-B Network, providing branded, surcharge-free transactions to its own card holders.

S-A-B ATMs are equipped with the company’s patent-pending software, which allows multiple financial institutions to deliver branded transactions through each S-A-B ATM. When the card holder of a participating institution swipes their card at any S-A-B ATM, they are instantly presented with transaction screens branded with the logo, colors and marketing messages of that particular institution. The surcharge is then shifted to the institution, resulting in a surcharge-free transaction to the card holder.

Aside from S-A-B’s standard customer service and brand extension benefits, providing outsourcing services to USPS FCU provides the credit union with the added benefit of eliminating ATM ownership and maintenance costs, which are now shouldered by S-A-B. And, since S-A-B participant banks and credit unions drive traffic to S-A-B locations, USPS FCU can expect to turn what has been traditionally known as a cost center into a profit center.

S-A-B transactions are processed by Fiserv, a Fortune 500 company that provides processing services for over 3000 financial institutions. “Fiserv is very enthusiastic about the evolution of S-A-B,” commented Tom Fox, VP of Sales for Fiserv’s EFT division. “We believe that more and more institutions will look to outsource their ATM offerings over time, and S-A-B appears to have a superior model that provides benefits to customers, merchant locations and financial institutions alike.”

S-A-B’s USPS FCU locations are in the Washington DC/Baltimore area.

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USPS Governor Ellen Williams reappointed

Posted by | Jun 18, 2008 | |

President George W. Bush has appointed US Postal Service Board of Governors member Ellen Williams for a second term ending on December 8, 2014.
The president first appointed Williams to the board in 2006 to serve the remainder of an unexpired term. At that time, she replaced John Gardner, who had held a recess appointment following the death of former governor Legree Daniels in November of 2005.
Governor Williams currently serves as vice chair of the board’s Compensation and Management Resources Committee and is a member of the Government Relations and Regulatory Committee.
She previously served as vice chairman of the Kentucky Public Service Commission and was chairman of the Republican Party of Kentucky.
She currently runs her own business, Ellen C. Williams LLC, a government affairs and lobbying firm. A graduate of the University of Kentucky, she lives in Anderson County, KY.
The USPS Board of Governors consists of nine governors who are appointed by the president and the consent of the Senate. No more than five of the nine governors can be members of the same party.

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FedEx report first loss in 11 years

Posted by | Jun 18, 2008 | |

FedEx Corp. posted its first quarterly loss in 11 years and projected earnings that fall short of analysts’ estimates as fuel costs rise and a slowing economy curbs demand. The shares dropped 2.1 percent.
The report from FedEx, considered a proxy for the U.S. economy, suggests fuel costs and declining demand will continue to erode prospects in industries ranging from shipping to airlines. Economists have cut their U.S. growth forecasts for later this year and next as job losses, food and fuel prices and tougher lending rules hurt consumers.
FedEx and UPS typically have a two-month lag in recovering fuel expenses through surcharges. Crude oil, from which gasoline and jet fuel are derived, averaged USD 115 a barrel in the three months ended May 31, up from USD 63 in the same period a year earlier.
FedEx’s fuel bill for the fourth quarter surged 54 percent, to USD 1.39 billion. Jet-fuel costs jumped 80 percent from a year earlier, Graf said on a conference call with investors and analysts.
The surcharges that FedEx has been able to add so far have hurt demand for express shipments, as some customers downgrade to cheaper options such as two-day shipping or freight. FedEx’s fuel surcharge on express packages is 28 percent, up from 18.5 percent in March, according to its Web site. The surcharge will jump to 32.5 percent in early July.
FedEx’s results underscore concerns among economists that higher energy and raw-materials expenses will squeeze profits in more industries as consumers resist price increases.

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