Brussels forces UPS to dump TNT bid


2


UPS has abandoned its bid to take over Dutch-owned express rival TNT Express in the face of opposition from Brussels. The US-based parcels giant said on 14 January that it had learned that the European Commission was working on a decision to prohibit the proposed acquisition. UPS had already submitted


proposed “remedies” to assuage the regulators’ concerns, but to no avail. UPS chairman and CEO Scott said he was “extremely


Davis,


disappointed” with the EC’s decision. “The combined company would have been transformative for the logistics industry, bringing meaningful benefits


to consumers and


customers around the world, while supporting growth in Europe in particular.” UPS will pay TNT a termination


fee of €200 million. The Commission apparently concerns


had that reducing


the number of major players in the international parcels market to a ‘big three’ would stifle competition – espcially considering that, given FedEx’s relatively small market share in Europe, DHL would have been the only credible competitor to UPS in many countries. This was despite UPS’s argument that the market is in fact much more competitive taking into consideration local parcel delivery firms and freight forwarders.


The refusal in early January


by FedEx to take over some TNT assets was instrumental in Brussels’ decision to reject the UPS takeover plan. Fedex is said to have wanted a larger share of TNT’s activities than that being offered; other possible purchasers like DPD were also discounted because their lack of an air transport network would have made them dependent on UPS or DHL. TNT’s shares responded by


slumping from around €8 to under €5. The two companies


protestations that they would sell assets and open up their air networks on 30 November held little sway with Brussels


regulators. Earlier, TNT said it would sell its shares in TNT Airways


all


and Pan Air Lineas Aereas, respectively


its Belgian and


Spanish-based air subsidiaries to ASL Aviation. TNT Express has already taken


legal action against its former CEO, Marie-Christine Lombard in an effort to stop her taking a similar post at French logistics firm Geodis. Lombard has been working for the French railways subsidiary


since 1 November,


but TNT says that a clause in her contract prevents her from working for a competitor. However, a Dutch court has ruled that the claim can only be pursued in France.


Safety watchdog calls for new airfreight fire rules


The National Transportation Safety Board in the US recommended changes to airfreight rules following publication of its investigation of three major cargo plane fires on 28 November. NTSB chairwoman Deborah


Hersman called for new Federal Aviation Administration rules requiring better early detection


of fires inside cargo containers, development of fire-resistant containers and requiring active fire-suppression systems on all freighter aircraſt. In the three cargo fire accidents


investigated, in Dubai, North Korea and Philadelphia, fires quickly grew out of control, leaving the crew with little time to get the aircraſt on the ground, Hersman said. Detection,


suppression and containment systems would give crews more time and options, she said. While existing federal


regulations require cargo airline fire detection systems to alert pilots within a minute of a fire starting, the investigation found that current systems in fact took from 2½ to 18 minutes to work. The NTSB added that


the materials used in cargo containers made fires worse and manufacturers or regulators had paid little attention to developing fire-resistant versions. The report also recommended


improved fire suppression systems on cargo planes, echoing recommendations made in 2007 - although the FAA found it to be too expensive.


New look for AMI operation


Wholesaler Air Menzies International (AMI) has reorganised its cargo receiving and trucking in the give later close-outs and more next-day departures from Heathrow. In Manchester, AMI has become


self-handling and will move to its own dedicated 8,000 sq ſt unit


instead of the existing shared facility. The on-airport facility will also be refurbished and its security improved. Manchester cargo for


flights


departing from London Heathrow will be trucked by nightly road feeders operated by Ware Transport. Reorganisation of


routes and pick-up points will give more direct services, later close- outs, shorter transits and earlier arrival at Heathrow. At Leeds Bradford Airport and


East Midlands Airport, AMI is now using handler WFS for receiving, with trucking to Manchester and Heathrow also provided by Ware


Transport. In Birmingham, AMI is now


being handled by Ware Transport at its Gateway Estate receiving centre and the transport firm also runs nightly trucks to AMI’s main UK consolidation centre at Heathrow to meet next day departures.


Manchester Airport has gained outline planning application approval for its World Logistics Hub. Airport owners MAG had put in an application for the £100 million scheme at the southern part of airport’s City Enterprise Zone in August and it was approved by Manchester


City


Council on 22 November. MAG’s Airport City director,


John Atkins said it was “a big step forward towards starting to


deliver new employment


opportunities for local people.” The 91.2 acre site is within the airport’s operational area next to Junction 6 of the M56 motorway,


and close to the existing airport freight area. Around a third of the area will


be dedicated to new landscaping and natural habitats but there will also be 1.2 to 1.4 million sq ſt of new logistics space with a mixture of logistics units ranging from 7,500 to 200,000 sq ſt. MAG adds that, together with


the existing cargo facilities at the adjacent World Freight Terminal, the new development will create “a world-class logistics district” with a full range of transfer, assembly and processing activities for freight forwarders and other logistics business.


UPS gets heavy


UPS has launched a new service for urgent and high-value international heavyweight shipments over 150lbs (68kg). The Worldwide Express Freight service is being marketed as an extension of its existing time-definite parcels product and is available from 37 origins to 41 destination countries and territories, door to door, including overnight service from the Asia Pacific region, Europe and the Americas to the United States. Two-day shipping is available to Europe from Asia Pacific, the US, and the Americas. Like the package service,


it offers automated shipment preparation, online tracking and proactive notification and freight


and package shipments can be consolidated into a single bill. UPS president of marketing, Ed


Buckley, said that the new offering was in response to demand from industrial manufacturing, automotive, high-tech, retail and healthcare customers. There are some specific pallet


size and weight limitations depending on the origin of the shipment. Full details are available on the UPS website. Worldwide Express Freight can


currently be used for dangerous goods shipments originating from Europe but is not available at the moment for shipments to Europe or Canada. However, there are plans to expand its availability in 2013.


Issue 1 2013


///NEWS


Manchester’s new logistics hub passes planning hurdle


Daily land departures from the UK to Russia and Eastern Europe


www.logistics.dbschenker.co.uk FBJ Jan_Feb_2013_Russia_EasternEurope_ 60_270mm.indd 1 27/12/2012 14:21:22


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