Tag: USA

American is back on postal route: Airline proves itself, signs 5-year contract to ship U.S. mail

Posted by | Sep 21, 2006 | |

In early 2005, the U.S. Postal Service rated American Airlines Inc.’s ability to deliver the mail on time so low that it stopped shipping mail on the carrier.
But a determined effort to improve service restored American to the postal service’s good graces — so much so that it signed a new contract with the Fort Worth-based airline on Wednesday that could mean USD500 million in cargo revenue over the next five years for American.
At a joint signing ceremony with airline president and chief executive Gerard Arpey, Postmaster General Jack Potter said American will carry more mail than any other U.S. passenger carrier, second behind only FedEx Corp. among all U.S. carriers.
David Brooks, president of American’s cargo division, said American most recently was getting USD80 million to USD100 million annually from its mail revenue.

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FedEx's wheels firmly on the ground in trucking Andrew Ward on how the delivery group's strategy to expand into the lighter truckload segment is paying off

Posted by | Sep 21, 2006 | |

FedEx is building an increasingly powerful presence in the US road freight market, expanding its delivery capabilities beyond parcels into a broader range of cargo.

Revenues from FedEx Freight, its trucking division, rose 20 per cent in the 2006 fiscal year, which ended in May, and accounted for more than 11 per cent of the group’s Dollars 32bn total.

Investors are hoping to see the positive trend continue today when FedEx reports first-quarter results.

This month, the group completed the Dollars 780m acquisition of Watkins Motor Lines, a large US truck company, further strengthening its presence in the sector. With more than Dollars 1bn of annual revenues, Watkins will increase the scale of FedEx Freight by about a third.

The deal came a year after UPS, FedEx’s biggest competitor, entered the road freight market through the Dollars 1.3bn acquisition of Overnite Corporation.

Both FedEx and UPS are focused on the Less-than-Truckload (LTL) segment, which handles lighter loads than the heavy truckload carriers.

FedEx wanted Watkins because it specialises in long haul, nationwide deliveries that differ from the group’s existing short haul, regional services.

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American Airlines announces new postal contract

Posted by | Sep 21, 2006 | |

American Airlines today signed a 5-year service agreement with the U.S. Postal Service potentially worth USD500 million in revenue to American, which is the largest single contract ever awarded to American’s Cargo division.
The previous contract with the Postal Service, executed in 2003, narrowed the number of carriers from 50 to only 13 and instituted stringent new requirements for the on-time delivery of mail by contracted carriers. To accommodate the requirements of that contract, American completely re-engineered its mail processes. Today, American is a preferred carrier of the Postal Service and carries more mail than any other passenger airline.

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DHL Global Mail expands U.S. mail terminal network with Phoenix facility

Posted by | Sep 19, 2006 | |

DHL Global Mail has expanded its Mail Terminal network in an effort to increase volume and customer demand.

Weston, FL-based DHL Global Mail said its new Phoenix Mail Terminal is expected to handle more than 25,000 mail parcels daily with capacity to quickly double its output.

Due to the expanding market needs DHL Global Mail recently opened a state of the art Mail Terminal in Kansas City, Kansas, to service increasing volumes of mail to the Midwest region.

The Phoenix Mail Terminal offers technologically advanced, full-service domestic processing for mail and mail parcels, including Smartmail Parcel residential package delivery service for shipments that are less than one pound.

The new facility has approximately 25,000 square feet and is about 20 minutes west of the Phoenix International Airport.

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Teamsters, UPS Starting Early on 2008 Contract Negotiations

Posted by | Sep 19, 2006 | |

The International Brotherhood of Teamsters and UPS today opened negotiations on a new contract to replace a six-year pact that expires July 31, 2008.
“While it is unusual to start this early, we do so because there are some very complex issues to address and we all recognize it will take time to find solutions,” said John McDevitt, UPS’s senior vice president for Global Transportation Services. “And an early start to negotiations greatly increases the chances of an early finish.”
“Ultimately, the only way to solve complex issues is through the collective bargaining process,” McDevitt added. “Starting almost two years early is the right thing to do for UPS employees as well as customers whose business depends on UPS.”
The Teamsters union represents roughly 238,000 UPS hourly workers in the United States.

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