Tag: USA

US postal chief foresees 2007 rate increase

Gasoline prices that have millions of Americans digging deeper into their pockets are spurring thoughts by Postal Service officials that an increase in mail rates may be needed in 2007, following one already planned for next year.
The fact that it costs the mail agency USD8 million for every penny increase in gasoline prices for its 212,000 vehicles is a major factor in a postal rate increase expected in 2007, after one next year, Postmaster General John Potter said Friday. A 2-cent increase in stamp prices scheduled to take place in 2006 will merely cover the cost of legally required escrow payments, so growing costs overall will force a second boost a year later, Potter said Friday in an interview with The Associated Press.

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UPS opens new logistics facility to serve healthcare industry

UPS today officially opened its largest logistics facility dedicated to serving the healthcare industry, a 500,000-square-foot distribution center located near the company’s Worldport global air hub. Thanks to the location, air shipment orders received as late as 11 pm can arrive at their destination the next day, while packages shipped via UPS’s ground network can reach 70 percent of the United States in two days or less. “With this facility, we have added another healthcare distribution center that can help our clients meet the many operational and regulatory challenges they face,” said Rocky Romanella, president and general manager of UPS Supply Chain Solutions’ Americas region, speaking at the official dedication ceremony here. “This facility will allow us to manage pharmaceutical and medical devices and equipment in a secure and approved environment.”

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UPS could make hostile bid for European firm

UPS chairman and chief executive Michael Eskew said yesterday he would not ”rule out” making a hostile bid for any large European logistics company.
The US parcels giant has been linked with Exel, the British supply chain group that last week agreed a pounds 3.7 billion takeover by Deutsche Post, and has retained Goldman Sachs to advise it. ”If we think it helps and the customers need it, we would [make a hostile bid],” he said during an interview at the company’s global headquarters in Atlanta, Georgia. He declined to comment on UPS’s interest in Exel. Sources close to the company said its interest in Exel had been ”overblown”, indicating the firm was looking to ”fill holes” in its international operations but not take on such a ”huge” firm as Exel. Kurt Kuehn, head of global sales and marketing, said: ”Deutsche Post’s view is whoever is biggest, wins. Our view is who has the best business wins.” He added: ”Deutsche Post is amazing. Their appetite: it would have give me a stomach ache long ago.” UPS’s strategy is to build a global managed supply chain service.

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US Postal Service adds ‘hold for pickup’ to delivery options

The US Postal Service today launched a new delivery option that can save customers shipping costs on products they have ordered by agreeing to pick them up at a designated Post Office. “Hold For Pickup” meets the needs of cost-conscious mailers shipping high-value and heavyweight goods and the customers receiving them. A package delivered Hold For Pickup will be kept safely at the Post Office until the customer collects it. Items shipped using Hold For Pickup are delivered directly to the Post Office instead of customers’ street address. This provides additional security for mailers who may not want expensive products left at a customer’s door.

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Dell transfers deliveries to US Postal Service

Dell is to shift some of its computer deliveries from private parcel shippers to the US Postal Service, underlining the growing competitive threat posed by the government-owned organisation to companies such as UPS and FedEx. The computer maker plans to drop off some newly-bought computers at US post offices for customer pick-up rather than delivering them directly to homes through private couriers. Any loss of business from Dell would be a particular blow to UPS, which counts the company among its 20 largest customers. Analysts have been warning for months that the US Postal Service is becoming a more powerful force in the US parcel market. The additional competition comes at a time when UPS is facing growing competition from FedEx and German-owned DHL in its domestic market. Dell said the change in shipping arrangements would initially affect only the company’s most basic products, with the majority of shipments continuing to be made through UPS. However, a spokeswoman said Dell planned to eventually offer the choice of home delivery or post office pick-up to all customers.

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