UPS may layoff 300 pilots worldwide

Despite a fourth-quarter net income of $757 million reported last week, UPS is still considering furloughing 300 pilots in May. They are still however negotiating with the Independent Pilot Association on ways to avoid this, such as early retirement, and leaves of absence yet this has been in the works for the past year. For UPS to come out in the free press and make this statement even, it seems as if the decision has already been made.

The company, one of the world's largest delivery integrators has been on a belt -tightenirg program for the past two years. With 1800 jobs already cut, salary freezes, and removing the match on 401K plans, UPS aims to go as lean as possible as the economic recovery wavers through 2010.

Read more at the WSJ

Fedex launches Direct Distribution

Fedex has launched a new service called International Direct distribution, which aims to provide shippers with an all in one service of consolidation of their multi destination packages at origin into one shipment. This saves costs for several reasons. There is only one customs clearance at destination and there is only one shipment, therefore eliminating multiple minimum charges for each consignee.

Shippers do not have to maintain a distribution centre offshore nor deal with several agents or parties that they often have no control over. Fedex aims to provide the distribution at destination throughout their own carrier system. This really is one stop shopping.

Traditional freight forwarders have been providing this for many years now. Dependant on the coverage and internal infrastructure of that logistics provider, sometimes they make it work and sometimes unfortunately they do not. What Fedex has over these companies is a faster transit time and reasonably efficient tracking capabilities. Learn more.....

Haiti Earthquake shows who steps up to the plate

Link to CBS News Video

Fedex will uplift $2million worth of medical aid to Haiti this coming Friday. The air lift as well as the logistics support is their donation to this effort.
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UPS is quick on the uptake and has announced they are donating $1 million to Haiti relief . Half of it will be "in kind " services i.e. their services and the other half in cash that will be spread to the various aid organizations. Bear in mind that UPS has a very aggressive and strong internal fund raising program that makes voluntary deductions from UPS employees so it's not clear whether it's really the compassion of the UPS employees or the UPS Corporate coffers that is the source of the cash donations.
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Reuters article highlights those companies that have stepped up to the plate to provide cash or fund raising programs.
Companies offer Aid for Earthquake victims

UPS Cuts 1800 Jobs and posts outstanding 4th Q results.

The latest news this week on Couriers is the cut of 1800 back office jobs in the USA. They report the reduction of their domestic small package service and are reducing regions as well as down sizing this particular business module. It seems rather ironic however since the USA domestic small package service was their original business module that propelled them onto the national and eventually international scene.

Considering that they have increased their rates by a general rate increase across the board by 4.9%, they are pretty serious about generating more revenue and cutting costs. They've posted a $0.73 dividend that is far higher than the forecasts.

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Published Rate Guides Courier

DHL, UPS, Fedex and Purolator have now published their 2010 rate guide and standard tariff. Yes...all this information is available on their websites but somehow, when focused on obtaining a rate, one can easily forget to check the handling, customs clearance and various additional fees, as well as the fuel surcharges which are in addition to the door to door rate. A written or printed document is much more likely to reviewed in it's entirety and provide information that the reader should know but does not necessarily seek when on line.


Published Rate Guides Courier