Growing Reliance on Supply Chain Software Applications
Growing Reliance on Supply Chain Software Applications
Read MoreTag: USA
Sorting FedEx’s US Mail
Still seething from losing lucrative U.S. Postal Service business in 2001, passenger airlines want FedEx Express to pony up information about its postal contract.
The airlines want the Department of Transportation to demand FedEx segregate mail volume from freight data. The Bureau of Transportation Statistics requires airlines to submit volume and revenue data about what they carry, including mail. Airlines and airports use the data for planning purposes and as fodder when they bid to carry USPS cargo. But Memphis-based FedEx, which carries more than half of the U.S. domestic mail, lumps the mail it carries in with its “freight” category on its quarterly reports to the BTS. Given the large volume of freight FedEx carries, BTS and passenger airlines say the aggregate number is meaningless when it comes to parsing out Postal Service information.
Read MoreDHL signs multi-million dollar agreement to ship hazmat packages
DHL has been chosen by Acuity Specialty Products (ASP) to handle all small package Hazardous Material (hazmat) requirements to customers nationwide. As part of a two-year, multi-million dollar agreement, ASP will leverage DHL’s ground delivery network and services to ship premium specialty products, including cleaners, deodorisers, disinfectants, herbicides, and pesticides, geared for the industrial, institutional, and retail markets.
Read MoreUPS freezing hiring and cutting costs after volume weakens
UPS Inc said it is implementing a management hiring freeze and will work harder on reducing costs as it reported disappointing fourth-quarter results that included weaker-than-expected domestic ground volume.
The Atlanta-based company also said Thursday that while it expects strong earnings and overall growth in 2005, its U.S. ground volume is only expected to rise 2 percent to 3 percent, which would be below the 3.5 percent the economy is projected to grow this year.
UPS shares fell USD1.49, or 2 percent, to close at USD74.01 in Thursday trading on the New York Stock Exchange. Its shares have fallen about 15 percent since Dec. 9, when the stock closed at USD87.53. It traded as high as USD89.10 on Dec. 10.
Read MoreUPS upbeat over forecast for 2005
UPS has insisted its weak performance in the last three months of 2004 was an isolated blip and forecast “solid” growth this year, driven by surging international business, particularly in China.
However, guidance for first-quarter earnings was at the lower end of analysts’ expectations, deepening concern that the world’s largest package delivery company could be losing ground to rivals FedEx and DHL.
UPS pledged to reduce annual costs by Dollars 200m and launch an initiative to win more business from mid-sized US businesses in response to its disappointing end to last year.
The company warned two weeks ago that its fourth-quarter earnings would fall below expectations because of reduced growth in domestic ground deliveries.
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