UPS Strengthens Its EU Presence

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FLYINGSCOT
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TNT
FLYINGSCOT   3/28/2012 8:50:47 AM
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I sure hope the UPS acquisition of TNT improves the service provided by TNT.  Having used TNT a few times over the years I have always found their service somewhat lacking.

Barbara Jorgensen
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UPS/TNT
Barbara Jorgensen   3/28/2012 9:27:52 AM
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This seems like a sweet deal for UPS. If, as some readers suggest, TNT's service could use an upgrade, I think UPS is up to the task. My last dealings with UPS were exceptionally good--they beat their delivery dates by several days. Whatever they are doing here in the US, they are doing right, and if they can duplicate it in Europe I thinks you'll see an improvement.

Jennifer Baljko
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Re: TNT
Jennifer Baljko   3/28/2012 9:44:55 AM
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@FlyingScot - Just wondering... "Found their service lacking" - how? in what way? Were they late, unreliable, etc? Can you clarify. Thanks.

Jennifer Baljko
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Re: UPS/TNT
Jennifer Baljko   3/28/2012 9:46:20 AM
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@Barbara - From what I read, that sounds like the intention. Take some of the best practices in the US and export them here. Hopefully it will be as effective.

Susan Fourtané
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Aha!
Susan Fourtané   3/28/2012 12:12:11 PM
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Hi, Jennifer 

So this was the reason. Some days ago I saw a UPS van close to where I live, and for half a second I was surprised. Then I just forgot about it. Surprised because I hadn't seen one in ages. Now thanks to your blog I know what was that UPS van doing in Finland. :) 

-Susan 

tech4people
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This is part of a much needed consolidation particularly in a Shrinking Market.
tech4people   3/28/2012 12:25:31 PM
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Jennifer,

I am sure you must have seen the recent Fedex Announcement that they have radically cut Growth and earnings Estimates for the rest of 2012.

http://www.businessweek.com/news/2012-03-23/u-dot-s-dot-stocks-fall-in-s-and-p-500s-biggest-weekly-drop-in-2012

This is something which is going to afflict the Industry as a whole going ahead as the World Economy slows down.

Good thing is that this move will enable consolidation especially in the rapidly Shrinking Market of Europe.

Thanks to Austerity Europe will struggle to see much growth going ahead and this UPS/TNT merger will ensure one less competitor for UPS in a shrinking market.

Consolidation is inevitable ,especially for the Smaller players.

Regards

Ashish.

Barbara Jorgensen
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FedEx and UPS and austerity
Barbara Jorgensen   3/28/2012 2:48:12 PM
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That's an interesting development becuase FedEx is usually considered a premium service, and UPS has a variety of 2nd and 3rd day deliveries that are less expensive. You may see more people and businesses willing to wait a day or two in order to save freight costs.

Bolaji Ojo
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Re: UPS/TNT
Bolaji Ojo   3/28/2012 7:00:07 PM
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One other issue to consider is that the various segments of the economy are being consolidated by the biggest companies. There are certain economic ends that can benefit from scale and one of this is logistics, which may explain UPS' action.

Hospice_Houngbo
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Re: Aha!
Hospice_Houngbo   3/29/2012 12:35:33 AM
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@SF

This means that UE market is still attractive to foreign businesses. However according to this article, EU antitrust regulators don't like the way UPS and other logistics companies are breaking EU antitrust rules. UPS would have to abide by EU laws if the company really want to do business there.

TaimoorZ
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Re: FedEx and UPS and austerity
TaimoorZ   3/29/2012 1:57:49 PM
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"and UPS has a variety of 2nd and 3rd day deliveries that are less expensive"

@Barbara: I think that's the niche market UPS has captured where they compromise on the delivery time but win with the cost. This may be true in markets where the consumers are more sensitive towards the price. I wonder if they can continue with the same strategy in the new regions they are entering into.


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