Alibaba acquires 14% stake in STO Express

E-commerce giant Alibaba Group will take a 14% stake in Chinese STO Express through a US$693 million deal. The move strengthens Alibaba’s access to STO’s network, while the new surge of investment will likely help the express carrier in its aims to grow its aircraft fleet.   STO Express announced that its controlling shareholder plans to set up a new […]

• Chelsea Toczauer
• March 11, 2019

DP-DHL’s 4Q Express, GF growth outweighed by PeP weakness

Despite revenue growth across all segments during the fourth quarter, and operating profit (EBIT) growth in the Express and Global Forwarding segments, Deutsche Post-DHL Group (DP-DHL) reported Group EBIT declines of 4.0% year-over-year to €1.13 billion, and 15.5% to €3.16 billion for the 4Q and FY2018 respectively, due to sharp declines in the Post-eCommerce-Parcel (PeP) segment. PeP EBIT fell 28.4% and […]

• Caryn Livingston
• March 7, 2019

Amazon growing last-mile strength, planning to go toe-to-toe with integrators?

Major integrators FedEx and UPS have been adamant that they aren’t worried by Amazon’s growing freighter fleet and last-mile delivery network. However, after yesterday’s release of fourth-quarter and full-year 2018 results from US-based 3PL and major Amazon service provider XPO Logistics, perhaps integrators and other logistics providers in major markets served by Amazon should be […]

• Caryn Livingston
• February 15, 2019

CF EMEA 2019: lower asset utilization fuels European express market’s appetite for converted 767Fs

Low utilization rates and inefficient packaging are driving European express demand for freighter-converted 767Fs, said panelists at this week’s first-ever Cargo Facts EMEA event in Frankfurt. Dr. Joerg Andriof, Chief Operating Officer, Titan Aircraft Leasing, told delegates that the most efficient express networks in Europe utilize feeder aircraft, 737Fs, and 767Fs. “On the trunk routes […]

• Caryn Livingston
• February 7, 2019

FedEx revenues rise, while Express trends worsen in 2QFY19

This week, Memphis-based FedEx reported a 9.3% year-over-year increase in revenue for its 2QFY19, ended 30 November, to US$17.82 billion. Operating income during the quarter was up only 4.8%, compared to a double-digit increase reported for 1Q, to $1.17 billion, and net income rose 20.6% to $935 million. The Express segment presented substantial headwinds for […]

• Caryn Livingston
• December 20, 2018

Amazon’s potential threat to FedEx and UPS

More freighters are likely to follow the fortieth 767-300F delivered last month to Amazon Air’s fleet. Today, a research note from Morgan Stanley added that “the market is missing the risk” that Amazon Air poses to growth at United States-based integrators FedEx and UPS. Of course, the idea that Amazon may intend to become an integrator […]

• Caryn Livingston
• December 4, 2018

DP-DHL 3Q operating profit under pressure from PeP division

Ongoing challenges in Deutsche Post-DHL Group’s (DP-DHL) Post-eCommerce-Parcel (PeP) segment depressed an otherwise positive third quarter for the Group. While DP-DHL posted operating profit (EBIT) gains in Express, Global Forwarding and Freight, and Supply Chain segments, a substantial year-over-year decrease in third quarter EBIT for the PeP division weighed heavily on the Group’s overall EBIT […]

• Chelsea Toczauer
• November 6, 2018

SF Express’ parent company to acquire DHL’s supply chain ops in China

Deutsche Post DHL Group (DP-DHL) will transfer its regional supply chain operations in Macau, Mainland China, and Hong Kong to SF Holding, the parent company of Shenzhen-based SF Express, the two companies announced today. Once the deal – which includes an upfront payment from SF Holding of €700 million, plus revenue-based royalties for the next decade – […]

• Charles Kauffman
• October 26, 2018