Although the recent credit crunch and resulting economic uncertainty are affecting the growth potential of the European express industry, the main effects will be on the use of different modes of transport and profitability rather than on overall levels of parcel volumes. Indeed, supply chain rationalization, internationalization and business-to-consumer (B2C) e-commerce are continuing to drive industry growth.

The credit crunch has hit individual markets and companies differently, leaving those relying on the US and intercontinental routes the most exposed. In general, its effects are felt to widely varying degrees depending on companies’ exposure to the most affected verticals, country markets and trade lanes. Continue reading “European parcel volumes resilient against economic adversity” »

FedEx is reported to be interested in acquiring TNT, which seems to suggest that it does not want to rely on organic growth to strengthen its position in the global express market. Although combining two of the world’s leading players would put strong pressure on the other two integrators, UPS and DHL, overall, the competitiveness of the industry looks set to remain intact.

FedEx, which reported negative results in the last quarter of its financial year and subsequently issued a pessimistic outlook, is heavily reliant on the slowing US market. As a result, it now appears to be looking for radical ways to improve its position in the global express sector. Despite the weakened US dollar, the effects of a tougher economic environment and rising fuel costs appear to have sparked FedEx’s renewed interest in the acquisition of Dutch mail and express rival TNT. Continue reading “FedEx interest in TNT renewed despite economic situation” »