Tag: USA

DOT order limits scope of DHL inquiry

The U.S. Department of Transportation issued a decision that had something for everyone in the controversial DHL Airways case, which pits the world’s express giants against each other. In a victory for Deutsche Post World Net, owner of DHL International, the DOT ordered the administrative law judge conducting the inquiry to focus solely on the current ownership of DHL Airways, now Astar Air Cargo.

But in a victory for FedEx and United Parcel Service, the DOT dismissed Astar’s motion to terminate the entire proceeding.

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Deutsche Post to press ahead with U.S plans

Deutsche Post, the German postal and logistics provider, on Wednesday pledged to prevent its US competitors from derailing its expansion plans in the US package delivery market, after lifting its full-year profit forecast on the back of a solid first-half.

Klaus Zumwinkel, the chief executive who has pushed through an ambitious 1.4bn ($1.6bn) savings plan aimed at nearly doubling group profits by 2005, said first-half business was “strong despite the continued economic weakness”.

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Repackaging the U.S. Postal Service

A presidential commission is examining broad-based reforms to the 736,000-person U.S. Postal Service. Among the proposals: letting the USPS slash prices in the summer, when mail volume drops, and offering discounts to merchants who pick up parcels at the post office rather than wait for delivery.

Proponents of the reform hope it will stabilize the troubled USPS, which lost $676 million in 2002 and amassed $11 billion in debt to the U.S. Treasury.

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Deutsche Post's U.S. chief will testify in DHL probe

Wolfgang Pordzik, president of Deutsche Post World Net USA, will testify in the ownership probe of the former DHL Airways. The time and place of Pordzik’s testimony has not yet been determined, said Holly Arthur, a spokeswoman for Deutsche Post. The deposition will not be public.

Pordzik had previously agreed to testify, but then reneged after the July 14 sale of the airline to BD Air Partners.

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UPS wants to sign confidential NVO contracts

United Parcel Service has filed a petition seeking the right to sign confidential contracts for its ocean delivery services, a move that strikes at the heart of the 1998 Ocean Shipping Reform Act. In its petition to the Federal Maritime Commission, which under OSRA has broad authority to review and grant such exemptions, UPS argues that its request for confidential contracting is consistent with the legislative intent of the law.

Under current law, companies that own vessels are permitted to engage in confidential contracting. However, companies like UPS that are classified for the purposes of ocean transport as non-vessel operating common carriers, must make their rate structure known through the publication of tariffs.

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