Tag: Worldwide

UPS volume grows in third quarter, 1,200 jobs to be eliminated

Posted by | Oct 19, 2006 | |

United Parcel Service Inc. has credited a 5 percent spike in global small package volume for its increase in net income in the third quarter.
Atlanta-based UPS (NYSE: UPS) also announced a new five-year partnership with the Italian Post to deliver the Italian post office’s international express volume. Financial terms were not disclosed.

For the third quarter, UPS had net income of USD1.04 billion on USD11.7 billion in revenue, compared with net income of USD953 million on USD10.6 billion in revenue in the third quarter of 2005. Earnings were 96 cents a share, compared with earnings of 86 cents a share in the third quarter of 2005.

Daily U.S. ground volume increased 3.6 percent in the third quarter, while average daily volume for Next Day Air rose 1 percent and deferred air volume climbed 3.4 percent. Total international package volume grew 19.9 percent.
“UPS is moving forward with confidence,” said Mike Eskew, UPS chairman and CEO. “Our small package business continues to show strength across all segments and we are taking the steps necessary to put our supply chain business on the right track after a disappointing performance.”

In other news, Reuters reports Thursday the UPS will cut 1,200 jobs from its freight forwarding division this quarter. This move will save the package shipper about USD100 million next year.

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Coast Capital Partners With London Drugs Subsidiary, Total Delivery Systems and Others to Deliver

Posted by | Oct 18, 2006 | |

Coast Capital Savings has inked a partnership with Total Delivery Systems and London Drugs subsidiary TLD Information Technology Specialists to provide value-added services to its business customers.

The program, dubbed “Big Perks for Small Business(TM)”, is the first cross-industry partnership between a Canadian financial institution and major service providers and will provide the credit union’s business customers with benefits, including a discount of 20 per cent on same-day courier services.

“In addition to simplifying the financial lives of small business owners through our banking products and services, we want to help them save time and money in three key areas: courier service, printing and copying and computer technical support,” said Lloyd Craig, President and CEO, Coast Capital Savings.

The program’s perks include discounts on small business IT service packages from TLD and a free initial service call. It also gives Coast Capital Savings’ business customers discounts of 20 per cent off same-day delivery services from local courier Total Delivery Systems. Big Perks for Small Business also offers customers discounts on national and international courier services. “Our goal is not necessarily to make small businesses bigger, but to help make them better.

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DHL agrees to buy 49 percent stake in Polar Air Support Services

Posted by | Oct 17, 2006 | |

DHL, the express delivery arm of Deutsche Post, has agreed to buy a 49 per cent stake in US-owned Polar Air Cargo to strengthen its presence in the trans-Pacific parcel and freight markets.

The deal represents a challenge to UPS and FedEx, the US express delivery groups, which currently dominate the tightly regulated market between Asia and the US.

DHL has a large parcel network in Asia and is also investing heavily in the US but before yesterday’s deal it lacked its own air capacity between the two markets.

Demand for trans-Pacific express delivery services is increasing sharply as trade between the US and China soars.

In return for its Dollars 150m investment in Polar, DHL will secure guaranteed capacity on the airline’s routes across the Pacific for up to 20 years.

“This key strategic partnership ensures we can meet the rapidly rising demand for air cargo capacities between the US and Asian destinations,” said John Mullen, chief executive of DHL’s express division.

UPS and FedEx each have more than 20 weekly flights between the US and China and the routes have become a powerful source of growth.

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Move on Hanjin suggests big rationalisation in container shipping

Posted by | Oct 17, 2006 | |

The Israeli shipping investor Sammy Ofer has bought a 12% stake in Hanjin, the Korean shipping line. Ofer bought the stake of Norwegian shipping magnate John Frederikson on Thursday, for over USD100m, equivalent to 8% of Hanjin’s equity. Ofer owns the Israeli shipping company ZIM and states that his stake in Hanjin is for “investment purposes”.

This is likely to be true, in the short term at least, as Hanjin is controlled by the Cho family who owns 30% of the company. It is therefore unlikely that Ofer will be able to mount a quick takeover bid.

On top of this Korea is a none-too-friendly place for takeover bids by non-Korean companies. Whilst some took place in the late 1990s, the last few years have experienced a hardening of sentiment against foreign investors.

However, the South Korean government has recently indicated that it would support the rationalisation of the Korean shipping industry, possibly through the takeover by Hanjin of smaller Korean container shipping companies. This is being driven by the consolidation of the container shipping industry, led by Maersk’s take-over of P&O Nedlloyd and Hapag-Lloyd’s purchase of CP Ships in 2005.

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Atlas Air Worldwide Holdings and DHL to form strategic partnership

Posted by | Oct 16, 2006 | |

Atlas Air Worldwide Holdings, Inc. (AAWW), leading provider of global air cargo services, announced today that its subsidiary, Polar Air Cargo Worldwide, Inc., has executed a letter of intent for DHL to acquire a 49% equity interest, including a 25% voting interest, in the scheduled-service business of Polar Air Cargo, Inc. (Polar), in exchange for USD150 million in cash.

The proposed transaction includes a strategic 20-year commercial arrangement that will ensure DHL access to aircraft capacity in key global markets, while providing the AAWW companies with a valuable, long-term customer and potential revenue stream in excess of USD3.5 billion over the full-term of the agreement, although there are certain early termination rights at five-year intervals. In addition, DHL will have access to available additional aircraft capacity from AAWW’s subsidiary Atlas Air, Inc. (Atlas).

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