New Zealand Post to Buy Out DHL of Express Couriers Limited & PDG

New Zealand Post Positions for the Future | New Zealand Post.

Press release by New Zealand Post dated 25 June stipulates that DHL Express and New Zealand Post have reached an agreement for the latter to buy out the 50% shareholding of DHL in Express Couriers Limited and PDG.

While the relationship based on ownership is resolved, the two parties will maintain a strong contractual relationship to s “support each other’s express delivery operations at a global level, through DHL Express; and domestically in New Zealand, through ECL; and in Australia via CPPL.”

Once again, we see the familiar reference to the decline in letter mail volume while parcels and courier services are growing “on the back of growth in e-tailing and e-trading.”

New Zeland Post’s response to that is to better align ECL with New Zealand Post to better match the products and services portfolio to the needs and wants of the market.

New Zealand Post Group CEO Brian Roche says “We can only achieve this if we have full ownership of ECL.” He also says that this acquisition is key in delivering the New Zealand Post strategy.

7% Price Hike by FedEx Freight from 9 July 2012

Following a 4% price hike for FedEx Express and FedEx Ground in January this year, according to the INQUISITIR, FedEx Freight is hiking prices by 6.9% on 9 July.

Says the INQUISITIR, “The Fed Ex rate increase as reported by MarketWatch applies to large shipments within the 48 contiguous states (i.e., Alaska and Hawaii are left unaffected by the new rate), between the U.S. and Canada, and within Canada. The new rate also applies to freight sent from the U.S. to Mexico.
Read more at http://www.inquisitr.com/250607/fedex-freight-boosts-shipping-charges-by-nearly-7/#IhIof5kLbbcqMxuj.99“

But this is likely to mean higher surcharges for FedEx Express and FedEx Ground services as well.

Yamato to Launch Next Day Service from Japan to Asia via Okinawa Hub

On 4 June, Yamato Holdings Co., Ltd., parent company of Yamato Transport Co., Ltd. and a group of companies now offering home delivery express services in Japan, Taiwan, Hong Kong, Singapore, South China and a number of other locations, announced that it will launch a new express service within the financial year utilizing its hub in Okinawa

Yamato aims to significantly reduce its lead time for “International Takkyu Bin” (B2C/C2C) as well as its “International Small Parcels Transportation Service” (for corporate accounts only) so that items shipped to any destination where it offers its 2C Takkyubin delivery service will be delivered the following day. This service is to commence within the current fiscal year. 

In addition, Yamato has announced that it plans to take advantage of the numerous flights operating in and out of Okinawa including late night flights as well as the 24-hour customs clearance and bonded warehousing facilities to create a new Asian Region Door to Door Comprehensive Logistics Platform. Also in the near future, it plans to expand its refrigerated and frozen goods logistics service, “Cool Takkyubin” into “International Cool Takkyubin.”

Yamato announced in its press release that they have reached an agreement with the Governor of Okinawa for this new range of services. 

In the press release, Yamato raised the following 6 points as the benefit of the Okinawa International Logistics Hub:

（1）	Okinawa’s geographical edge due to its being centrally located in East Asia (average flight time to key Asian cities is 4 hours or less)
（2）	An extensive overnight air transport network connecting Japan to major Asian cities
（3）	Commencement of a Special International Logistics Region Polocy at the International Logistics Base  （40% deduction on income tax, investment deductions, extraordinary deductions, etc. )
（4）	Potential expansion of international logistics infrastructure  （additional runways, concentration and expansion of the air and sea ports as well as FTZ, logistics center facilities, etc. ）
（5）	A young and abundant work force, quality education and research facilities, extensive subsidies, high standard of living, aspirational resort environment, securing Japanese high quality, etc. )
（6）	Fewer earthquakes than the main island, its remoteness as security against simultaneous damage in case of acts of god

Several images were available on the press release:

Schematic image of the Okinawa Hub Operations

Transit Time Comparison: Before (4days) and After (next day)

Yamato Okinawa Hub Flight Schedule

Yamato International Takkyubin  Price List

Note that Zone 1 is Korea, Taiwan, China, Hong Kong, Macau, Indonesia, Malaysia, Singapore, the Philippines, Thailand, Vietnam, etc. 

Zone 2 is Australia, New Zealand, US, Canada, Mexico, India, etc. 

Zone 3 is UK, France, Germany, the Netherlands, Belgium, Switzerland, Austria, Italy, Spain, Turkey, etc.

Zone 4 is ROW (rest of the world)

Feature Article on Singapore Post’s CEO

Post & Parcel ran an interview on Singapore Post, now led by the 36-year old Dr. Wolfgang Baier on 7 June 2012.

Singapore is 24km x 42km and has a population of 5.18 million people and 4 licensed postal operators.

Singapore Post or SingPost is the public postal licensee, but competition is fierce.

While many see Hong Kong as the gateway to the southern provinces of China, Singapore is no doubt a direct marketing and publishing hub for Southeast Asia. There are still several international titles printed in Singapore and distributed physically.

I do like to keep the address labels on my treasured magazines to see who is carrying them. In recent years, I have seen Pitney Bowes increase their influence with quite a number of titles. And the biggest surprise was when the September issue of a very globally renowned fashion magazine came via Saga Express and not the cheaper “Mail Bin” or mail delivery option which only has a delivery scan (no signature) as it is dropped in the mailbox. The issue was so thick that it by far exceeded the 2cm limit to have it dropped in my mailbox! I am sure THAT delivery cost the courier more than what it made, but then again, it was only one of 12 issues for that year…

Singapore is now one of the more aggressive posts when it comes to pursuing commercial initiatives. (The rule of thumb in the postal world is that the smaller posts are more dynamic and the larger posts or the posts of larger countries are more conservative.) And vPost is quite a novel approach. I particularly admire their ongoing efforts in the SNS space, an area where many posts have yet to venture.