Tag: USA

FedEx spends USD 5.5M to lobby in 2007

Posted by | Feb 19, 2008 | |

FedEx Corp. spent roughly USD 5.5 million in 2007 to lobby the federal government; according to a disclosure form posted online Thursday by the Senate’s public records office.

The company spent about USD 3.9 in the second half of 2007 to lobby the House of Representatives, Senate and White House on issues related to the federal budget, transportation and energy, according to a disclosure form posted online Thursday by the Senate’s public records office.

FedEx also lobbied Congress on trade agreements with Peru, Colombia and Korea.

FedEx spent USD 1.6 million in the first six months of 2007 to lobby on legislation related to Federal Aviation Administration funding, air cargo security, air traffic control, biofuels, homeland security and visa wavers, among other issues.

Lobbyists are required to disclose activities that could influence members of the executive and legislative branches, under a federal law enacted in 1995.

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USPS raises rates in effort to keep up with rising costs

Posted by | Feb 18, 2008 | |

The US Postal Service has announced several rate increases for its market-dominant products, which include First-Class Mail, Standard Mail, Periodicals, package services and special services. The increases are expected to take effect on May 12.
The USPS plans to increase prices for these products on an annual basis each May, according David Partenheimer, a USPS spokesman. “Smaller, predictable price changes will allow our business customers to better plan and budget for their mailings,” he said.
This will avoid the problems caused by the old pricing system, where several years went by without a price change and then some mailers were hit with a big increase.
According to the Postal Accountability and Enhancement Act, the average price increase per class can not exceed the Consumer Price Index. However, prices can vary within a class. As of January 16, the price cap for market-dominant products is 2.9 pct, according to the Postal Regulatory Commission. Overall, First-Class mail will increase by 2.889 pct, Standard Mail by 2.875 pct, Periodicals by 2.710pct, package services by 2.876 pct nd special services by 2.848 pct .
In the Standard Mail category, par¬cels and non-flat machinables will see the largest percentage cost increase at 9.66 pct. Standard Mail letters will increase by 3.39 pct; flats by 0.86 pct; high density and saturation letters by 1.66 pct ; high density and saturation flats and parcels by 2.09 pct and carrier route letters, flats and parcels by 2.99 pct .

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UPS accelerates ground shipments for customers in eight states

Posted by | Feb 18, 2008 | |

UPS announced another step in its continuing quest to reduce ground transit times for customers, accelerating package movements between more than 12 million ZIP code pairings by one day or more. The improvements include lanes originating in eight key states and more than 70 markets and will speed up more than 75,000 packages nationwide every day.

This year’s initiative is improving service for almost half-a-million customers nationwide without changing their pick-up and delivery times. The new enhancements follow transit time improvements in 2006 that helped more than 1.2 million customers in 11 metropolitan areas.

The faster deliveries will benefit daily package pick-up customers as well as general consumers shipping via UPS.com or The UPS Store and Mail Boxes Etc. For example, shipments between Denver and Philadelphia now are guaranteed to arrive in three business days instead of five. Shipments between Pittsburgh and Dallas now are guaranteed to arrive in two business days instead of four, while ground shipments between Hartford and Chicago now will take two business days instead of three.

The eight origin areas with the latest improvements include Colorado, Connecticut, Minnesota, Pittsburgh, Montana, North Dakota, western Nebraska and Wyoming. Customers can view the improved transit times at ups.com/fast and print both outbound maps as well as inbound time-in-transit maps.

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US regional operator Velocity Express seeks international partners

Posted by | Feb 13, 2008 | |

Velocity Express plans to expand its international business and is looking for partnerships with logistics suppliers. The company meanwhile reduced its losses in the fourth quarter but its revenues also dropped due to customer losses.

The company said it is stepping up its focus on its Global Alliance initiative to capture the significant long-term opportunity in the worldwide marketplace.

Wasik, Velocity’s Chairman and Chief Executive Officer said the company has signed up Shanghai-based ALC Advisors to assist on the Asian component of the alliance. “We are also in discussions with potential partners in other regions of the globe and other industry segments,” he added.

Velocity Express also announced operating results for the second quarter and six month period. Revenue for the quarter ended December 29, 2007 fell to USD 86.1 million from USD 102.3 million in the same period one year earlier. This was due to the loss of two significant contracts with a financial institution and Office Depot, the end of unfavourable contracts inherited from the merger with CD&L, and the generally slow economic environment, which combined more than outweighed new customer acquisitions.

However, the company succeeded in reducing its Q4 operating loss to USD 3.9 million from USD 8.7 million one year earlier. The net loss was USD 8.9 million compared to USD 13.4 million one year earlier.

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DHL Express USA to reduce workforce by 600 positions

Posted by | Feb 12, 2008 | |

In a move designed to lower general and administrative costs across its U.S delivery business—due to the current economic climate and market conditions—DHL Express USA said today it will reduce its workforce by approximately 600 positions.

DHL added that these domestic workforce reductions will occur through attrition, reductions, and suspending open positions across functional areas. DHL Express USA Spokeswoman Michele Nadeem told LM that these reductions will take place today and tomorrow.

Hans Hickler, Chief Executive Officer, DHL Express USA., said in a statement that this action is one of several measures DHL Express USA is taking to improve its competitive position in the U.S. market, which is strategic to the company’s global growth plan. “These changes will help us better align our cost structure without impacting our unwavering commitment to serve our US customers,” said Hickler.

Since then it has competed aggressively for market share against industry bellwethers UPS and FedEx, as well as the United States Postal Service. DHL said it has invested more than USD 3 billion into the U.S. since 2003, including USD 1.2 billion in infrastructure and distribution.

In the DHL statement issued today, the company said it is making moves to augment its competitive position in the U.S. by investing in business growth areas and increasing service to both consumer and business customers, as well as the non-cash writedown for DHL Express USA.

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