New survey indicates improvements by 3PLs ‘imperative’
New survey indicates improvements by 3PLs ‘imperative’
Read MoreTag: USA
American Airlines Cargo and DHL Express leverage strengths in cooperative program
American Airlines Cargo and DHL Express have agreed to increase cooperation to pursue additional opportunities in the marketplace. The new program will leverage the strengths of both companies to better serve customers in the freight and logistics industry worldwide. Highlights include the introduction of interline agreements that allow American to use DHL Express freighters to reach Eastern Europe, Africa and parts of the world not directly served by American Airlines. American also is joining DHL Express Air Carrier Management Program, further extending the traditional business relationship the companies have had over the past two decades in markets worldwide. “We’re excited about the opportunity to work with DHL Express and other members of the Deutsche Post World Net at a new level,” said Dave Brooks, President of American Airlines Cargo. “Our participation in the Air Carrier Management Program offered by DHL Express will allow us to provide added value to our customers in the shipping community by maximizing the strengths both companies bring to the industry.”
Read MoreFedEx opens 150 new branches in Bosnia
Shipping company FedEx has signed an agreement with the Bosnian postal services to open 150 branches in the Bosnian Serb half of the country, officials said Wednesday.
The contract foresees FedEx opening branches in 150 post offices in Bosnia’s Serb republic, said Milutin Pejic, the general director of the republic’s postal service.
FedEx official Faruk Sahinagic said his company would handle international shipments, while the post office would handle the fast delivery within the republic.
The agreement was signed Tuesday.
Read MoreRemaking FedEx’s Market
The numbers from the world’s largest express operator suggest the company and its market are undergoing dramatic change. Demand for international airfreight is strong but the slowing U.S. domestic business reflects shippers’ increasing preference for time-definite ground services.
Fedex reported record results in the quarter ended Aug. 31 even as domestic express business remained stagnant and rival DHL reported it would lose more than expected in the United States as it ramps up its operations there.
FedEx chalked up a 23 percent increase in revenue in the last quarter to reach $6.98 billion. Its operating profit surged from $200 million in the period a year ago to $579 million, while the operating margin went up from 3.5 percent to 8.3 percent.
The bottom line was that net profit more than doubled, to $330 million.
Building Brown Bigger
Showing the kind of force it exerts on the logistics market, UPS bought up one of North America’s largest freight operators and raised new questions about how far consolidation of service providers will go and what the parcel giant’s increasingly large competitors will do to respond.
UPS bought Menlo Worldwide Forwarding, the $1.9 billion integrated and forwarding business that once carried the Emery Worldwide name around the world, from CNF for what appeared to be a fire sale equivalent of $260 million. With barely a financial dent to a balance sheet that includes more than $4.5 billion in cash and cash equivalents, UPS moved to fill a gap in its own heavy freight services and freed CNF from a financially struggling business that has distracted the company from its successful and growing Con-Way regional LTL operation.
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