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Psa Nov 21 2010


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update on fedex, ups, usps, dhl, tnt

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Psa Nov 21 2010

  1. 1. Kitty Hawk, NC (North Carolina), December 17, 1903. Orville Wright's famous first airplane flight.
  2. 2. 1910 First commercial airplane flight <ul><li>The first commercial </li></ul><ul><li>transport flight </li></ul><ul><li>with an airplane took place on November 7, 1910, when Phil O. Parmalee carried two bolts of silk </li></ul><ul><li>on his Wright Model B from Dayton to Columbus, Ohio. </li></ul><ul><li>The world’s first air-freight shipment was sponsored by the Morehouse-Martens Department Store as a publicity event. </li></ul>
  3. 3. The first “you freight is out for delivery message”
  4. 4. <ul><li>Reported in the local Columbus newspaper, the story noted that the shipment had beaten the railroad express between the two cities </li></ul><ul><li>Phil Parmelee posing after his historic first cargo flight on November 7, 1910. The 100# cargo of silk (valued at $800) is bundled next to him. </li></ul><ul><li>.He made the historic flight of 62 miles in 62 minutes from Dayton to Columbus, exceeding the expectations and as a result only about 1000 people saw him land. However, shortly thereafter the crowd grew to around 4000. </li></ul>By using a consultant this shipper could have received a 49% lower price UPS would have charged an extra handling fee of $50 for this packaging
  5. 5. Airmail <ul><li>With initial help from the U.S. Army, </li></ul><ul><li>the Post Office in 1918 </li></ul><ul><li>initiated an intercity airmail route. </li></ul><ul><li>The subsequent achievements </li></ul><ul><li>of the Air Mail Service included </li></ul><ul><li>the establishment of a transcontinental route and the development of airway lighting. </li></ul>
  6. 6. Outstanding Books to read on the topic
  7. 7. Something is clearly going on in the Parcel Industry Review
  8. 8. Reminder <ul><li>DHL exited the @home business </li></ul><ul><ul><li>Aug 28 2008 </li></ul></ul><ul><li>DHL exited the domestic air and ground commercial segment </li></ul><ul><ul><li>Jan 30 2009 </li></ul></ul><ul><li>We are 22 months post event </li></ul><ul><li>Ergo the current numbers are absent of y-o-y tailwinds for UPS FedEx and USPS </li></ul>
  9. 9. DPWN DHL Nov 9 2010
  10. 10. DHL Freight Nov. 9, 2010
  11. 11. Panalpina <ul><li>Nov. 4, 2010 </li></ul>
  12. 12. Expeditors <ul><li>Revenue up 32% Y/O/Y </li></ul>Nov. 2, 2010
  13. 13. Kuehne & Nagel <ul><li>Seafreight </li></ul><ul><li>During the first nine months of 2010, Kuehne + Nagel maintained high-level container volume with a 17 per cent increase. Growth in the global seafreight market, however, softened in the third quarter. </li></ul><ul><li>Airfreight </li></ul><ul><li>Kuehne + Nagel increased airfreight tonnage by 29 per cent in the first nine months, although growth in the international airfreight market had slowed in the middle of the year. </li></ul>Oct. 16, 2010
  14. 14. Aramex <ul><li>Aramex reports third quarter net profit of AED 46.7 million, up 12%      Aramex (DFM: ARMX), the global logistics and transportation solutions provider, today announced its results for the three months ended September 30, 2010. </li></ul><ul><li>Revenue for the third quarter was AED 545 million, an increase of 12% year on year. </li></ul><ul><li>Published on: 10/25/2010 3:29:00 PM  </li></ul>
  15. 15. TNT Nov 1, 2010
  16. 16. UPS <ul><li>Average (domestic) daily package volume expanded 3.6% during the quarter due to growth in Ground and Next Day Air.  </li></ul><ul><li>Revenue per piece improved 4%, primarily through increases in base pricing and higher fuel surcharges.  </li></ul><ul><li>Export average daily volume increased 13%, outpacing the market, due to growth in all regions with Asia leading the way, up more than 30%. </li></ul><ul><li>Non-U.S. domestic volume increased 14% with strength across Europe, Canada and Mexico. </li></ul><ul><li>October 21,2010 </li></ul>
  17. 17. USPS September 27, 2010
  18. 18. UPS FedEx Stock performance since July 1
  19. 19. Effective Jan. 2011 <ul><li>FedEx Express package and freight rates will increase an average of 5.9 % for U.S. and U.S. export services. The rate increase will be partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by 2 percentage points. </li></ul><ul><li>UPS Ground services will increase a net 4.9% through a combination of a 5.9% increase in rates and a 1% reduction in the UPS Ground services fuel surcharge. UPS Air and International services will increase a net 4.9% through a combination of a 6.9% increase in rates and a 2% reduction in the UPS Air and International services fuel surcharge. </li></ul><ul><li>USPS - In addition to an overall price change of 3.5 percent for Priority Mail, new prices for Express Mail, Global Express Guaranteed, Express Mail International, Priority Mail International, Parcel Select and Parcel Return Service will be effective Jan. 2. The overall price change for all Shipping Services products is 3.6 percent. </li></ul>
  20. 20. The Devil is in the Details <ul><li>Dimensional weight is calculated by multiplying the length by width by height of each package in inches and dividing the total by a specific factor. FedEx will change the factor from 194 to 166 for FedEx Express shipments within the U.S. and between the U.S. and Puerto Rico, and from 166 to 139 for U.S. export and U.S. import-rated shipments. FedEx will change the factor from 194 to 166 for FedEx Ground packages that are 3 cubic feet (5,184 cubic inches) or larger for shipments within the U.S., and from 166 to 139 for FedEx International Ground ® shipments to Canada. </li></ul>
  21. 22. FedEx <ul><li>Average daily package volume increased 3%. </li></ul><ul><li>FedEx Ground average daily package volume grew 7% </li></ul><ul><li>FedEx SmartPost average daily volume increased 9%, </li></ul><ul><ul><li>with net yield increasing 19%. </li></ul></ul><ul><li>The increase in FedEx SmartPost yield was primarily due to lower postage costs as a result of increased deliveries to U.S. Postal Service final destination facilities and increased fuel surcharges. </li></ul><ul><li>September 16,2010 </li></ul>
  22. 23. Y/O/Y Trend
  23. 24. “‘ It’s tough to make predictions, especially about the future” baseball-playing philosopher, Yogi Berra
  24. 25. DHL & TNT <ul><li>(DHL Express) </li></ul><ul><ul><li>“ The upward business trend of the first quarter continued steadily in the second quarter with daily shipment volumes rising by 5.5% in the TDI product line.” </li></ul></ul><ul><ul><ul><li>(Aug 3, 2010) </li></ul></ul></ul><ul><li>(TNT EXPRESS) </li></ul><ul><ul><li>“ Volumes back around 2007 levels (core kilos +9.5% versus Q2 2009)” </li></ul></ul><ul><ul><ul><li>(Aug 2 , 2010) </li></ul></ul></ul>
  25. 26. FedEx <ul><li>“ Our revenue and earnings growth are exceeding original expectations, primarily due to better-than-expected growth in FedEx Express and FedEx Ground volumes ,” said Alan B. Graf Jr., FedEx Corp. executive vice president and chief financial officer. “Our package volume growth rates in our first quarter are continuing at a pace similar to our fourth quarter.” Of particular benefit to our earnings is the continued strong demand for our higher-margin FedEx International Priority (IP) package and freight services, with IP package volumes expected to grow more than 20% again this quarter.  </li></ul><ul><ul><li>(July 26 , 2010) </li></ul></ul>
  26. 27. ARAMEX <ul><li>For the second consecutive quarter, company revenues witnessed double-digit growth, reaching AED 557 million, a rise of 15 % from the AED 485 million registered in the same period of 2009 . These results were mainly due to an increase of business across the company’s operations and strong growth in freight services in Europe and India. Building on the solid performance achieved in the first quarter of 2010, the company also achieved a high net profit margin of 10% in the second quarter as it continued to focus on operational cost efficiency </li></ul><ul><ul><li>(July 25, 2010) </li></ul></ul>
  27. 28. UPS <ul><li>“ For the three months ended June 30, 2010, operating margin expanded 320 basis points to 11.5% and consolidated volume totaled 948 million packages, a 4% increase.” </li></ul><ul><li>“ Average daily volume increased more than 1% with ground up 2%.” </li></ul><ul><ul><li>(Jul 22 , 2010) </li></ul></ul>
  28. 29. USPS PRC filing of revenue and volume for May 2010 (June 25 , 2010)
  29. 30. FedEx <ul><li>“ FedEx delivered strong results in our fourth quarter, thanks to sequential growth in package volume and our ability to leverage our unique global networks to take advantage of a recovering economy,” </li></ul><ul><li>FedEx Ground average daily package volume grew 7% in the fourth quarter driven by increases in the business-to-business market and the FedEx Home Delivery service.  Yield increased 5% primarily due to higher fuel surcharges.  FedEx SmartPost average daily volume increased 23%, with yield increasing 6%. </li></ul><ul><ul><li>(June 16 , 2010) </li></ul></ul>
  30. 31. UPS <ul><li>“ For the three months ended March 31, 2010, consolidated volume totaled 940 million packages, a 3% increase .”  </li></ul><ul><ul><li>(Apr 27 , 2010) </li></ul></ul>
  31. 32. CANADA POST <ul><li>The economic downturn made 2009 another challenging year for Canada Post’s Parcels business. </li></ul><ul><li>Overall, volumes were down 6.9 per cent compared to 2008 </li></ul><ul><li>Revenue for the year was down 2.9 per cent at $1.3 billion, as commercial customers sought to manage costs by switching from air shipments to ground delivery of parcels. </li></ul><ul><li>A decline in the number of inbound parcels from the United States also weakened volumes. </li></ul><ul><li>We delivered 148 million parcels in 2009, compared to 159 million in 2008. </li></ul><ul><li>The volume of deliveries of our </li></ul><ul><li>Xpresspost™ service decreased by 11.7 per cent during the year . </li></ul>April 27, 2010
  32. 33. <ul><li>“ FedEx Corp. reported the following consolidated results for the third quarter: </li></ul><ul><li>• Revenue of $8.70 billion, up 7% from $8.14 billion a year ago • Operating income of $416 million, up 129% from $182 million last year • Operating margin of 4.8%, up from 2.2% the previous year • Net income of $239 million, up 146% from last year’s $97 million </li></ul><ul><li>FedEx International Priority® (IP) average daily package volume increased 18% </li></ul><ul><li>IP freight revenue increased 49%. </li></ul><ul><li>Aidaily package volume grew 1% </li></ul><ul><li>FedEx r Ground average daily package volume grew 5% year over year , primarily due to growth in the business-to-business market. </li></ul><ul><li>FedEx SmartPost average daily volume grew 46%.” (Mar 18 , 2010) </li></ul>FedEx
  33. 34. UPS <ul><li>In the fourth quarter, we again saw growth in average daily air volume with Next Day Air up almost 3% and Deferred up over 4%. Growth decline for Ground moderated in the quarter. </li></ul><ul><ul><li>(Feb 2, 2010) </li></ul></ul>
  34. 35. FedEx <ul><li>“ Positive momentum in the global economy and continued execution of our business strategy drove volume growth across all FedEx transportation segments, highlighted by increased international shipments,” </li></ul><ul><li>“ FedEx Ground average daily package volume was up 4%. FedEx SmartPost average daily volume grew 63%,” </li></ul><ul><ul><li>(Dec 17 2009) </li></ul></ul>