Tag: USA

US Teamsters Deliver Message to DHL

Posted by | May 18, 2005 | |

In conjunction with the Deutsche Post World Net Annual General Meeting today in Cologne, Germany, thousands of DHL Teamsters throughout the United States wore “Teamsters Deliver” buttons to protest the company’s efforts to thwart organising drives at hundreds of its ground delivery subcontractors.

At the same time, a Teamsters delegation met with German and other union officials to describe DPWN subsidiary DHL’s systematic efforts to prevent its subcontractors’ employees from forming unions in their workplaces.

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DHL reins in its ambitions in US market

Posted by | May 18, 2005 | |

DHL has said it does not want to chase US market share from UPS and FedEx, signalling a reining in of the company’s ambitions in North America. John Mullen, joint chief executive of DHL Express, characterised the company’s plans in the US as “realistic and modest”, insisting it was not “setting out to create another UPS or FedEx”. His comments, at a Bear Stearns investor conference in New York, eased concern that DHL might spark a price war in the US package delivery market after two years of heavy investment. Mr Mullen said the company’s most urgent objective in the US was to improve service quality, which he described as having been “horrendous” last year. Once service improved, DHL would seek to increase prices closer to those of UPS and FedEx rather than cut them, he said. “We’re not driven by market share gains,” said Mr Mullen. “We want to get more value out of the volume we have rather than chase more volume.”

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Spend and deliver: UPS acquisition of Overnite

Posted by | May 17, 2005 | |

Even UPS has its gaps. The world’s largest package delivery company plugged an obvious one with yesterday’s acquisition of Overnite. The deal takes UPS into less-than-truckload freight services in the US for the first time, after several years watching the success of rival FedEx in that area. Overnite is no steal for UPS. The delivery group is paying a 46 per cent premium, while giving no guidance on the synergies available to justify such a chunky uplift. There should be some. UPS will be able to squeeze some benefits from having a ground freight network to link with the air freight operations of Menlo Forwarding. From the customer perspective, UPS will be able to offer a more complete set of products. Having filled an obvious gap in the US, UPS could turn its attention to faster growing international markets for its next move. Exel, the UK-based logistics group with a strong international presence, would, for example, be a bigger bite. Investors should not underestimate UPS’s appetite.

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USPS continues to report volume gains

Posted by | May 16, 2005 | |

Jim Cochrane, Manager of Package Services for the USPS stated at Bear Stearns Transport Conference that volume growth within its Priority and Express Mail, and Parcel Post producs (all of which compete with UPS, FedEx and DHL Amercias products) continues to trend positive. The USPS had learned its lesson from taking too large rate increases too close together when it raised Priority Mail prices by 30% in two years in 2001-2002. After shrinking for three years, Priority Mail and Parcel Post grew 2.8% (including 5.5% in March) and 8.4% last quarter.

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