Tag: USA

Mailers Council Asks USPS for a Standard Rate Implementation Period

Posted by | Aug 24, 2006 | |

The Mailers Council, the largest coalition of mailers and mailing associations, has released a new research paper outlining the benefits of a standard implementation period of at least 90 days, longer in more complicated cases, when the Postal Service raises postage rates.

Currently there is no law or postal regulation mandating the minimum number of days between completion of a rate case and the date when the Postal Service implements new rates. Historically, implementation periods have ranged from 30 to 60 days. As the paper explains in detail, having sufficient time to plan for new rates is important to both mailers and postal employees, especially in cases like the current one that include substantial rules changes so they can update their systems.

Inadequate implementation time exposes mailers and the Postal Service to additional costs from accumulated overtime. It raises the risk of errors and system flaws that add millions of dollars in administrative costs for both mailers and the Postal Service. Exceptions may help avoid postage costs, but most mailers believe the system is inherently unfair, and it generates hundreds of hours of administrative work. The cost to the Postal Service in terms of its customer relations is needlessly high.

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Expeditors International Of Washington, Inc. EXPD's 8-K renders few surprises

Posted by | Aug 23, 2006 | |

EXPD released monthly 8-K. Yesterday EXPD released its 8-K in response to investor questions related to its 2Q:06 report on August 1st. There were no real surprises. Mgmt reported that strong air and ocean freight vols continued into July, remained upbeat about business prospects and gave 3Q:05 and 4Q:05 restated FAS 123R option expense impact for the upcoming comparison quarters.Since reaching an all-time high of USD58.28 on 7/3/06 EXPD’s stock is down 30 percent, however the stock is still up 21 percent since the beginning of the year, compared to the S&P 500 up 1 percent and 2 percent over the same periods. This also compares to EXPD’s closest comps CHRW down 14 percent and up 26 percent and UTIW down 3 percent and 20 percent during these time periods.

Our sense is the recent weakness in EXPD’s stock has been driven in part by (1) the recent sell-off of transport names, mostly the result of investors rotating out of the transport sector (particularly the best performing names such as EXPD) later in the economic cycle; (2) modest downside 2Q results, mostly due to the high expectations set by 1Q results, and (3) our sense that the stock had gotten ahead of itself after several recent strong quarters.

EXPD has a twenty-five year track record for growing earnings through all economic cycles, and we view the stock as relatively a-cyclical or even counter-cyclical. In a potential slowdown, we expect EXPD to gain purchasing power with ocean and air providers and to expand gross yields, offsetting reduced volumes.

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TNT sweetened bid for logistics?

Posted by | Aug 23, 2006 | |

Apollo ups bid for TNT Logistics.

Dow Jones reported yesterday afternoon that U.S. private equity firm Apollo Management has made a late hour bid for TNT’s Logistics division of up to USD2.3B (Euro1.8B), according to unnamed sources quoted by Dow Jones.

This bid is roughly 30% higher than the mid-range of the bid that the newswires reported last Friday that French private equity firm PAI Partners was planning to pay for TNT Logistics. At the reported price of USD2.3B (Euro1.8B), Apollo would pay about 10.7x 1-year trailing EV/EBITDA. TNT has not commented on DJ’s report.

However, if the reported price paid by Apollo is close, we would view this as a strong positive for TNT, with the price about USD1.0B (Euro800M) above expectations

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DHL expands in Charleston

Posted by | Aug 21, 2006 | |

DHL Global Forwarding announced Monday that it plans to relocate its ocean freight and customs brokerage operations in Charleston, S.C. to expanded facilities closer to the Port of Charleston and Charleston International Airport.

The move, effective Oct. 1, will combine the now-integrated operations of the former DHL Danzas Air & Ocean and Exel Global Logistics freight management operations, each of which previously did business at separate locations in Charleston. The move is expected to improve the quality and timeliness of service to ocean freight and customs brokerage customers, Plantation, Fla.-based DHL said.

Charleston is DHL’s primary port for ocean cargo moving to and from the Southeast U.S., and its import gateway for less-than-container load traffic from Europe.

The company said the existing separate facilities were not large enough to accommodate the expanded needs of the newly-integrated companies.

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Made in America

Posted by | Aug 21, 2006 | |

What do blue jeans, DVDs, moisturizer and athletic shoes have in common? They are among the American products that Chinese consumers desire most, according to a UPS survey of 1,200 middle-class consumers in six Chinese cities.

The second annual UPS survey of Chinese urban consumers – often referred to as “Chuppies” – reaffirms their demand for high-quality U.S. products and unearths more detailed insight into their buying preferences and demographic differences. UPS, which flies to more points in China than any other U.S. airline, commissioned the survey to help its customers do business in the world’s fastest-growing market.

“The survey highlights the need for small-to-mid-sized businesses to be prepared and focused on exactly what it is they want to accomplish by entering China,” said Kevin M. O’Connell, senior partner of the law firm O’Connell and Co., which handles foreign direct investment and general business matters in China. “They need to set themselves apart from their competition and from the large multi-nationals and market to a very specific niche.”

The most sought-after products in this year’s survey were American videos/DVDs, music or books and consumer electronics – which also were the top categories in the 2005 survey.

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