FedEx versus UPS
By Amy Morin
There is some fierce competition in the U.S. courier service department these days. The good news is, the competition allows for better shipping prices for residential and commercial customers.
Although there are several courier services available in the United States, FedEx and UPS remain the two most popular options.
The price difference between courier services is often negligible, however, there are differences among the services that often make people prefer one company over the other.
FedEx became popular when the company began offering next-day delivery service and the speed at which the company could get a package to its destination was impressive.
Although many other courier services are now able to compete with FedEx’s next day service, FedEx remains a top choice for many customers and the company is renowned for its reliability with overnight delivery and all air deliveries are guaranteed.
Earlier in 2013, FedEx was awarded a seven-year contract with the U.S. Postal Service, valued at around $10.5 billion.
Beating UPS for the lucrative contract, FedEx offered lower pricing for mail handling and the contract means that the postal service will pay FedEx to carry mail between U.S. airports. The company’s large air network made it a logical choice to partner with the postal service.
FedEx also joined forces with the postal service with its SmartPost option, shipping low-weight packages via FedEx to a customer’s post office.
The United Parcel Service is the largest package delivery company in the world. Known for its reliability and service, UPS has historically been a top choice for courier services.
One of the main reasons UPS remains so popular is the ease of sending packages. While FedEx has nearly 51,000 shipping locations, UPS offers around 63,000.
UPS stores are abundant in urban areas while on rural areas, there are often authorised outlets where general stores or other businesses can accept UPS packages.
There are also drop boxes which make sending a package even simpler. UPS offers more pickup options than any other courier service.
Although UPS is best known for its ground-delivery service, overnight and express options are available and all shipments through UPS offer a guaranteed on-time delivery, with only a few exceptions. Tracking packages online is simple and offers customers an expected date of delivery.
UPS has also been addressing its huge carbon footprint in several ways. In 2011, the company streamlined operations to ensure they were using the most fuel efficient transport modes for packages. The company compiled data to learn when to ship via airplane, train, truck or ship.
The company has also been working with the U.S. Department of Energy’s Clean Cities program, and in 2012, UPS launched hydraulic package delivery trucks with better fuel economy and generating fewer greenhouse gas emissions.
While there are other delivery services out there, customers and executives no doubt have been taking flight with FedEx and UPS more than any others.
Amy Morin writes about psychology, business and topics such as how to remove articles from Google Searches.
Kuehne+Nagel cuts carbon footprint by 70% for Honda China
Around 16,000 tonnes of CO2 has been cut from the supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel.
The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018.
KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management.
"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive.
After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected to eradicate 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total.
"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”
Kuehne+Nagel’s Net Zero Carbon programme
Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners.
Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”.
As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030.