Net income down, are asking the international express delivery!

UPS and DHL are currently not indicated on the Chinese market and further reduce costs, but just passed the "Postal Law" to express giant ambitions in China poured cold water basin.

Global express delivery giant spate of bad news on the economic trends continue to remind those who are optimistic about people, do not get too excited. United States, UPS has announced first quarter earnings, net profit fell sharply 56% to 4.01 billion. After two weeks, Europe's largest postal delivery service DHL is also expected to decline in a quarter past the fourth quarter of super speed, as a pillar of e-mail business income fell even more evident. With the news here also, UPS and DHL in North America on receiving the latter's air parcel business negotiations broke down, the number of co-operation could have produced one billion U.S. dollars revenue.
Also, news from China is not optimistic. Just adopted a new "Postal Law" clearly provides that foreign investors can not invest in the domestic mail delivery, will be shut out of the four major express delivery group. At the same time, FedEx is also taking place in China's domestic express delivery within a week lay off hundreds of the Department.
"Logistics service delivery level of activity is a barometer of the economy, the second quarter will still be the company's difficult times. According to the forecast of economic observers, we hope that performance will bottom out later this year, and at the end of the year or early next year U.S. market growth. "UPS Chairman and CEO Scott Davis (D. ScottDavis) said.
Collective performance dip
According to U.S. media reports, because the amount of letters and small package delivery plummeted, some local cities have begun to dismantle a roadside mailbox. Corresponds to the performance of each company, the last year, net profit of 906 million U.S. dollars UPS at this time, but now only 401 million U.S. dollars; the global average daily package delivery volume fell 3.9%, revenues declined 14% to 10.094 billion U.S. dollars. Air Transport Union, said the United States, UPS freight scale for 7 months down, 21% decline in February.
DHL at the annual shareholder meeting, admits, in the first quarter decline than the fourth quarter of 2008, even more violent. Mail service was DHL money-spinner, but forecast first-quarter operating profit fell 27% e-mail to 396 million euros, while revenue fell 5%, and only supply chain operating profit improved.
However, senior vice president of DHL Asia-Pacific Fanshi Feng told Reuters in an interview Friday, said Shi Que, nearly six weeks of business volume in Asia has bottomed. DHL Asia in the first quarter sales were flat over the same period, overall less affected in South Asia, China and South Korea are performing better. "I hope that backlash is not temporary."
Last month, FedEx also announced as of Feb. 28 in the third quarter fiscal 2009 net profit fell to 97 million U.S. dollars, up 75.3% plunge. Which express business operating profit 45 million U.S. dollars, plunged 89% year on year.
For the performance of each company, analysts were not surprised. "The problem is, is not it has bottomed," Deutsche Bank analysts said the North.
Save some, and then save some
Short-term performance is difficult to improve, companies first and foremost task is to further reduce expenditure. UPS said in a quarterly, as demand fell and the opening of the double impact of large aircraft program, fleet size during the year will decrease from 263 to 212. Over the past few months, UPS has been working with American pilots union negotiations to lower pilot pay expenses, currently there is no final outcome of this negotiation. "Every department must make sacrifices to meet the overall interests", UPS said a manager of external affairs, through cost-cutting program has saved up to 5 billion dollars.
Earlier this month, FedEx announced before the end of May will be out of 10 Airbus A310 aircraft and four Boeing MD-10 series aircraft. In the Chinese market, more recently, the Department decided to domestic express about 2 / 3 of sales personnel cut, the remaining sales staff into the department of international express delivery, the plan is expected to save more than 20 million yuan for the FedEx.
Decisive battle in China
UPS and DHL are currently not indicated on the Chinese market and further reduce costs, but little change in business details have emerged, such as more expensive. DHL announced the beginning of "re-value goods," services, with lower prices of imports and exports for non-emergency to provide convenient door to door delivery. Subordinate to another branch of DHL Global Forwarding business last week announced plans to launch direct service container LCL.
While still in the transit center near the Shenzhen airport, the construction of UPS, said, "is still the primary key markets as China, and will continue to invest in this market."
However, just passed the "Postal Law" to express giant ambitions in China poured cold water basin, which explicitly not allowed to invest foreign domestic express mail service. The world's four major express delivery companies to speak on behalf of the Asia Pacific International Business Forum issued a public statement express regrets. "" Postal Law "the relevant provisions of Chinese companies and consumers can not make the full enjoyment of foreign express delivery services. This will undermine the broader foreign express delivery market and competitive domestic enterprises should be some competitiveness."
Interestingly, despite the poor performance, UPS Chairman Davis in the analyst meeting, or criticized the U.S. government to buy domestic products to encourage behavior that it may send a negative signal to the world. "Once we implement protectionist, other countries will immediately do the same thing."