Tag: USA

UPS debuts customs clearance and international returns solutions for small businesses

As the world becomes “flatter” and globalization drives new opportunities for international commerce, how do small- and medium-size businesses (SMBs) jump on the bandwagon?

The Internet allows any business to gather orders and process them across borders very easily at low cost. For SMBs in the U.S., currency fluctuation are working in their favor for overseas commerce. And such free-trade drivers as the North America Free Trade Agreement (NAFTA), the Central America Free Trade Agreement (CAFTA), and World Trade Organization (WTO) measures are making it easier for goods to flow around the globe — at least in theory.

The reality is that small business operators need to jump through complex hoops — especially in a post-9/11 world — to actually move their goods across borders, and back again the event of returns. Recognizing the opportunity and the challenge, UPS in early 2008 is debuting several new services to help SMBs join the Fortune 500 when it comes to expanded markets and international commerce.

UPS is helping to change the face of global shipping by being a market innovator with a solution called UPS Paperless Invoice. It uses UPS applications and the Internet to define commercial shipment invoice data for border clearance, eliminating the customer’s chore of manually applying three paper invoice copies to each shipment. UPS will also soon deliver UPS Returns in 98 countries so shippers can use digital technology and UPS solutions to prepare the proper return labels so goods can be easily returned back across borders when necessary.

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Online, Newspaper Audiences Up, But Revenue Growth Slows

Roughly 59.6 million people visited newspaper Web sites in July, according to new figures from the Newspaper Association of America. That’s 37.1 pct of all active Internet users in the U.S., and the number represents a 9 pct increase over the same month in 2006.

In fact, it’s the second-largest monthly audience on record since 2004, when NAA started tracking Web audiences. (The top spot is held by May of this year, when NAA reported 60.3 million visitors.)

This good news for newspapers comes alongside a new report on the total print and online “footprint” of newspapers, based on analysis of Scarborough data, which found that 77 pct of adults read a newspaper in print or online every week during the third quarter. The duration of online visits is also on the upswing, with users spending an average of 43 minutes per month on newspaper Web sites during the third quarter of 2007, versus 40 minutes in the same period last year.

The historic and current figures are all available in the Newspaper Audience Database or NAdbase report produced by the NAA, which contains other data detailing newspaper readership, including the following statistics: 85 pct of individuals from households with annual incomes over USD 100,000 read a newspaper in print or online each week; so do 84 pct of college graduates. Also, 82 pct of individuals who bought something online in the last year.

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US Postal Service halts vehicle buys

When it comes to procuring alternative fuel vehicles, the U.S. Postal Service leads the way. Its alternative fuel fleet — nearly 38,000 vehicles that run on ethanol, compressed natural gas or other nonpetroleum products — is the largest of any employer nationwide.

The Postal Service won’t be purchasing any vehicles — gasoline-powered or otherwise — until 2015 at the earliest, said Walt O’Tormey, the agency’s vice president of engineering.

Most of the agency’s alternative fuel vehicles run on E-85, a blend of 85 percent ethanol and 15 percent gasoline. There is strong support in Congress for increasing the use of E-85 nationwide, but the fuel has several limitations that are only now beginning to emerge.

The Postal Service is not covered under a January executive order that requires executive branch agencies to reduce their gasoline consumption by 2 percent annually and increase their use of alternative fuels by 10 percent a year. However, the agency is taking several steps to reduce its fuel consumption, including consolidating delivery routes, promoting ethanol usage where it is cost neutral, and using vehicles more efficiently, a spokesman said.

Because the Postal Service has such a large fleet — more than 210,000 vehicles — the infrastructure must be in place before the agency can move wholesale to alternative fuel vehicles. That means parts suppliers and mechanics, in addition to fueling stations.
O’Tormey recalled one instance in which the company supplying batteries for a vehicle the Postal Service was testing closed up shop.

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FedEx & UPS give peak day package forecasts

FedEx expects 11.3 million packages to move through its FedEx Express and FedEx Ground networks on Dec 17, compared with an average daily volume of 7 million packages, the company said in a press release.

Last year, FedEx predicted 9.8 million packages would pass through its network on its peak day.

Spokesman Howard Clabo said last year’s figure did not include FedEx SmartPost packages — a lower cost service in which packages are dropped off at the nearest post office and then taken the last few miles to customers by the U.S. Postal Service.

Excluding SmartPost packages from this year’s prediction, the comparable forecast would be 10.4 million, a gain of 6.1 percent.

UPS spokesman Norman Black said the Atlanta-based company expects package volumes in its network to reach 22 million on its peak day on Dec. 19.

On average day the world’s largest package delivery company moves around 15 million packages through its network.

Company officials said in early 2007 that during the 2006 peak season the company moved more than 22 million packages on three separate days.

Both companies have warned recently that slowing U.S. economic growth will have an impact on their business.

In September FedEx reported a 4 percent increase in fiscal first-quarter profit but warned that slower growth would act as a drag on earnings in coming quarters.

In a conference call with analysts last week after it also posted a 4 percent increase in quarterly net profit, UPS officials said the company still expects package growth in the crucial fourth quarter but added that growth would be slower than in the past four years.

As in previous years, online retail sales are expected to be a boost for both package delivery companies.

Retail consultant TNS Retail Forward predicted in September that fourth-quarter online sales this year would grow 20 percent to USD 42 billion from USD 35 billion in 2006.

Overall retail sales should grow by just 3.3 percent as the credit crunch is expected to hurt consumer confidence, TNS Retail Forward said.

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