FedEx to buy-out current service providers in southern Africa

FedExCorp announced last month that the first stage of its acquisition of its current service provider for Southern Africa is under way. On June 20th, FedEx signed an agreement to acquire the businesses operated by Supaswift (Pty) Ltd in five Southern African countries: South Africa, Malawi, Mozambique, Swaziland and Zambia. The US logistics and courier company is also in discussions to acquire Supaswift's businesses in Botswana and Namibia.

Across all seven countries, Supaswift currently operates 39 facilities and employs some 1,000 staff, all of whom are expected to join the FedEx workforce following completion of the acquisition. Once the deal is complete, the suite of FedEx services - comprising export, import and domestic - will be offered in the region, strengthening FedEx's network in Africa. Most would agree that, of all the major global couriers, DHL currently has the greatest African network. The move by FedEx can be interpreting as a means of expanding its interests into this developing continent.

Indeed, Frederick Smith, Chairman, President and Chief Executive Officer of FedEx Corp said that the acquisition of Supaswift's business "will provide customers with greater access to some of the world’s most rapidly growing economies" and is "an important step in our international growth strategy and further strengthens our FedEx Express portfolio.”

President of FedEx Express Europe, Middle East, Indian Subcontinent and Africa, commented, "FedEx Express has been active in Africa since the early 1990s, through a well-established netowrk of Global Service Providers. This acquisition, once completed, will reaffirm our support to customers in this region."

Middle East sees 10.5% air cargo growth, amidst a slow month for other regions

IATA (the International Air Transport Association) recently published their market analysis for March. Air freight markets weakened during this last month of the first quarter, suggesting that growth rates noted at the end of 2012 have stalled. International markets as a whole saw reductions in both actual freight tonnage (-2.1%) and capacity (-0.3%); but in spite of this slump, the Middle East and Africa saw a growth in traffic, with the former region seeing an increase of a remarkable 10.5%.

African cargo grew by a more modest 3.2%, while every other region saw a fall in traffic of between 0.8% (Latin America) and 5.2% (North America). While the Asia- Pacific region saw a fall of a less dramatic 3.3.%, since this region accounts for 38.5% of the market, the area saw the biggest drop in actual freight volumes. The European market was also flagging, with a traffic reduction of 4%.

Compared to the economic nadir of October 2012, global air freight volumes were up 1.5%. In spite of this relatively low growth, Tony Tyler, IATA’s Director General and CEO commented: “The March decline in air cargo is most likely a temporary stall. The fundamentals for a sustained improvement in air cargo volumes are in place. Business confidence continues to signal forthcoming expansion, and the solid increase in new export orders seen in 2013 should boost air freight in the coming months." 

Speaking of region-specific performance, Tyler said:  "Much of the current weakness is coming from Asia-Pacific airlines. While the region is economically strong, the economies of its trading partners are not. The Eurozone is showing renewed weakness and the negative impact of US budget cuts is yet to be fully measured”. 

Clearly, the air cargo sector is by no means immune to the vicissitudes of the global economic crisis. Perhaps Matthew Mariott, commercial director of Hellmann Worldwide logistics UK, was correct in stating that the way forward for the industry is low yet sustainable growth.  

Source: IATA

Analytiqa publish findings about expanding African logistics market

Aimed at professionals in the supply chain industry, Analytiqa's new report into African Logistics explores the opportunities for 3PLs  and freight forwarders looking to expand their networks into the continent.

The report provides detailed profiles of emerging market trends in eight countries, drawn from both North and Sub-Saharan Africa. The profiles include data on market size, growth rates and outsourcing rates per country, as well as forecasts for 2016. 

Analytiqa state they have composed the report in response to demand from industry professionals seeking unbiased, reliable and comprehensive data about the state of logistics markets on the continent. They have commented on the expanding African middle class, which is growing at a rate fast than that of India, as an indication of the business potential of the area.

Source: Analytiqa
You can send a parcel to South Africa, Nigeria or any other African country cheaply with Transglobal Express.

FedEx Express Taiwan shipments now subject to late cut-off times

Starting this month, FedEx Express customers shipping goods from Taiwan to Europe or Africa can now benefit from extended delivery cut-off times. This affects consignments sent via the FedEx parcel services, FedEx International Priority (IP) and FedEx International Economy (IE).

‪ (Photo credit: Wikipedia)

The courier company hopes that its customers will “enjoy more time to prepare [their] shipments.” Michael Chu, FedEx Taiwan managing director, confirmed that 

“despite a challenging economic environment in Europe, Taiwan remains a strong trading partner with the EU and trade between the two markets in 2011 climbed more than 10% year-on-year.”

Last year US$2.9 million worth of goods alone were shipped from Taiwan to Africa and Europe positions itself amongst the Taiwan’s top 5 largest business partners.

Source: FedEx Express Taiwan, Post & Parcel

Air freight on the rise in the Middle East and Africa

Recent stats published by the International Air Transport Association (IATA) showed some small, but significant improvements in the air freight industry.

Whilst Asia Pacific is still struggling with a decline of 7.3 percent, the Middle East positions itself amongst the growing markets with a increase in demand for air freight by approximately 14.5 percent. According to Analytica, the reason for Asia Pacific’s decrease can be found in the weakening export in China.

Although Western nations continue to face difficult times in current air freight markets, the Middle East and Africa appear to be on the “bright side” of business life. In fact, African carriers can pride themselves with a 6.1 percent increase in demand and an impressive 9 percent increase in capacity.

For more information on freight traffic market shares of regional carriers please refer to the following graph:

Sources: Analytica, Transglobal Express (graph)

Transglobal Express supports 3rd World Hope

3rd World Hope are a UK Charity who were created in July 2009. They are dedicated to working in cooperation with disadvantages communities in Africa to make them a safer environment for children to live. Just a couple of examples of village that have benefitted from the support of 3rd World Hope and their sponsors include Kamusita Village and Bandawe Village.

Transglobal Express have been involved in helping 3rd World Hope by offering shipping services free of charge, to ensure that donated toys and clothes get to those who need it most.

"Transglobal Express have been an integral part of our development and success over the last 2 years. They have shipped our consignments of clothing and toys out to our Orphan Centre. Not only have our valued items reached their destination safely, but Transglobal Express have supported 3rd World Hope and the children we help in Africa, by doing this for us free of charge. This has allowed us to concentrate our funds where they are needed most, on providing these disadvantaged children with a chance of a safe and healthy future. Thank you for your continued support!"

Transglobal Express would like to invite all of our customers to get involved and offer your support to 3rd World Hope. You can find out more about the charity and how you can help by visiting our website at Transglobal Express supports 3rd World Hope or the 3rd World Hope website direct.

Related articles

• Send a Parcel Worldwide with Transglobal Express (transglobalexpress.blogspot.com)
• Track your Parcel with DHL & UPS (transglobalexpress.blogspot.com)