Tag: USA

Chicago postal service is rebounding

Posted by | Aug 9, 2007 | |

The Chicago District of the U.S. Postal Service announced Wednesday that it had improved its delivery rate through reforms a few months after the U.S. postmaster slammed the city for having the worst mail delivery in the nation.

District Manager Gloria Tyson said an audit of Chicago’s mail operation by IBM Consulting Services found that 93 percent of first-class, overnight mail arrived on time between April and July, compared with 90 percent the previous quarter.

The increase was the result of the district hiring more than 240 more carriers, overhauling equipment and correcting nearly 143,000 addresses, Tyson said.

The announcement drew praise from U.S. Rep. Danny K. Davis (D-Ill), who in May oversaw a House subcommittee hearing on the city’s mail operation that aired complaints from disgruntled customers, business leaders and lawmakers.

U.S. Rep. Jan Schakowsky (D-Ill) said her office had heard from more than 120 frustrated postal customers this year.

Davis said previous managers of Chicago’s mail operation had insisted there were enough carriers, even as the union argued otherwise. He said the recent audit proved the managers had been wrong.

On an April visit to Chicago, U.S. Postmaster Gen. John E. Potter is finishing an audit of the Chicago district, which will highlight problems and suggest solutions.

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FedEx lawsuit could cost USD 630 million

Posted by | Aug 9, 2007 | |

A federal judge in South Bend this month will weigh whether lawsuits filed by independent contractors against FedEx Corp. in two dozen states should be combined.

About 150 independent contract drivers, designated by FedEx as part-time employees, seek to be classified as full-time workers, according to Bloomberg. That would entitle them to benefits and paid time off.

FedEx also could be forced to buy up to 15,000 trucks used by the drivers, at USD 45,000 apiece. According to some estimates, a favorable ruling for contract drivers could cost the Memphis-based company USD 630 million.

FedEx has been nipping at the heels of larger United Parcel Service, grabbing nearly 20 percent of the ground-delivery market, while UPS has shrunk to 70 percent from 82 percent over the past decade.

The Teamsters union, which represents UPS drivers, is behind the flurry of lawsuits, according to FedEx. It filed as evidence with the court copies of emails between the union and attorneys representing the independent drivers.

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FedEx Kinko’s to Introduce Locations in McCormick Place

Posted by | Aug 9, 2007 | |

FedEx Kinko’s and the Metropolitan Pier and Exhibition Authority (MPEA) today announced plans to open five office and print centers in the McCormick Place convention center and historic Navy Pier in Chicago. Detailed plans provide for four locations to open within the convention center facility and one in Navy Pier later this fall.

The presence of FedEx Kinko’s in McCormick Place will provide the convention center’s nearly three million annual visitors with convenient access to high-quality office, printing and shipping services all in one place, without leaving the facility. In addition, customers anywhere in the world may submit orders online for production at the new FedEx Kinko’s locations, saving the hassle of traveling with hefty materials and presentations.

The new FedEx Kinko’s centers will be located in the North, South, and West Buildings and Lakeside Center (formerly the East Building). Similar to stand-alone FedEx Kinko’s Office and Print Centers, these locations will offer copying and digital printing services, sign and banner production, FedEx Express and FedEx Ground shipping options, and more.

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Mailers’ Technical Advisory Committee focus on measurement

Posted by | Aug 8, 2007 | |

With Overall mail volume up a mere 0.2 percent from the third quarter of last year, the US Postal Service is stepping up its initiatives to improve performance.

Glen Walker, CFO of the USPS, announced the company’s financial results Washington last week at the Mailers’ Technical Advisory Committee meeting.

He reported that First-Class Mail was down 1.3 percent; Standard Mail up 1.8 percent; Periodicals down 2.7 percent; Express Mail down 1.3 percent; Priority Mail down 2.4 percent; and packages down 0.3 percent.

Walker attributes the lackluster results to the postal increase this spring.

The Postal Service has mailed about 1 billion direct mail pieces this year to educate small businesses, large commercial businesses and consumers on the importance and effectiveness of a direct mail piece. It’s part of a multichannel marketing approach that uses direct mail, Internet and television ads. So far, online-shipping service awareness has risen to 55 percent this year, up from 25 percent in 2004. Awareness of free package pickup was at 10 percent in 2004 and is now at 45 percent. Awareness of non-retail window revenue was 25 percent this year, up from 16 percent the year before.

Since on-time delivery is big during the holiday season, the USPS sent out holiday shipping and mailing guide, with 35 percent recalling getting the guide and 58 percent of those finding it helpful.

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Atlas Air Worldwide Holdings, Inc. 2Q07 Net Income Totals USD 43.2 Million, Up 304 pct

Posted by | Aug 8, 2007 | |

Atlas Air Worldwide Holdings reported sharply higher earnings for the second quarter of 2007 compared with second quarter of 2006. This reflects a continuing improvement in aircraft utilization due to proactive asset management, sustained operational execution, the positive impact of Continuous Improvement initiatives, increased AMC charter demand, and reduced net interest expense.

Earnings for the quarter included a substantial tax benefit related to DHL Express’ investment in Polar Air Cargo Worldwide, Inc., in which DHL acquired a 49 pct equity interest (including a 25pct voting stake) in exchange for USD150 million in cash; USD75 million was received at closing in late June, with the balance scheduled to be received in 2008.

For the June 30, 2007 quarter, AAWW earned USD 43.2 million, 304 pct more than in the second quarter of 2006. Earnings per diluted share equaled USD 2.01, nearly four times the year-ago level. Revenues for the quarter totaled USD 370.4 million, with operating income of USD3 1.2 million and pretax income of USD25.2 million. Net income reflected a tax benefit of USD 18.0 million, which was driven by a net tax benefit in connection with the DHL transaction that reduced income tax expense in the quarter by USD 27.7 million, or the equivalent of USD1.29 per diluted share.

The Company recorded a deferred gain of USD 151.4 million in the quarter as a result of the DHL transaction. The gain will be recognized as income in the period in which the blocked-space agreement between Polar Air Cargo Worldwide and DHL commences, which is scheduled to occur no later than October 31, 2008.

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