FedEx Freight, a subsidiary of FedEx Corp. will increase shipping rates by an average of 3.9 per cent, effective March 31, 2014. This rate change applies to eligible FedEx Freight® shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.
This rate change for FedEx Freight applies to shipments covered by the FXF 1000, FXF 501 and other related series base rates. Additional changes will include absolute minimum charges and accessorial rates and charges. The FedEx Freight fuel surcharge will remain unchanged and is one of the lowest in the LTL industry. The new base rates, rules tariff and accessorial charges for FedEx Freight will be available at fedex.com on March 31, 2014. FedEx previously announced increases to shipping rates for FedEx Express and FedEx Ground, which were effective Jan. 6, 2014.
The FedEx Freight Segment includes FedEx Freight, a leading U.S. provider of LTL freight services; FedEx Freight Canada, an LTL operating company serving most points in Canada; and FedEx Custom Critical, North America’s largest time-specific, critical shipment carrier.
Although 2013 revenues for the Group fell by 4 per cent to US$47.4 billion, and net profit dropped by 6 per cent to US$3.8 billion, Group CEO Nils S. Andersen reported that “We have reason to be pleased with profit development in 2013. Maersk Line strengthened its profitability despite challenging shipping markets and both APM Terminals and Maersk Drilling had their best result to date. As expected, Maersk Oil’s underlying profit was below last year due to decline in production and lower oil prices. However, production stabilised mid-year and increased towards the end of the year. Most of the Group’s other businesses also improved results and in total six out of eight businesses came out of 2013 as top quartile performers in their industry.”
Maersk Line reported a profit of US$1.5 billion, versus a profit of US$461 in 2012. Cash flow from operations increased from US$1.8 billion to US$3.7 billion. The improvement was achieved through vessel efficiencies resulting in lower unit costs, as well as lower bunker prices. Average freight rates decreased by 7.2 per cent to US$2,674/FFE, and volumes increased by 4.1 per cent to 8.8 million FFEs. Bunker consumption was reduced by 12.1 per cent. Market share was maintained at a level comparable to 2012.
Fleet capacity increased by 0.2 per cent to 2.6 million TEUs, mostly as a result of delivery of four Triple-E container vessels in 2013. An additional 16 Triple-E vessels with capacity of 288,000 TEUs are scheduled for delivery during 2014 and 2015.
UPS released details regarding fourth quarter 2013 results. Average daily package volume increased 6.0 per cent, as total deliveries in December surged 20 per cent. Significantly higher than predicted volume and inclement weather contributed to excess operating costs in the U.S., negatively affecting results. “As the retail market shifts to a direct-to-consumer model, more and more companies are leveraging UPS solutions,” said Scott Davis, UPS Chairman and CEO. “As a result, we experienced an unprecedented increase in volume, exceeding even our most optimistic plans. However, “the increased volume put a strain on our network, causing delays. In response, UPS deployed additional people and equipment, placing a greater emphasis on service than cost,” Davis explained. “UPS will make the necessary investments and operational improvements to ensure we meet the needs of the marketplace.”
The number of direct jobs resulting from marine-sector activity in Quebec amounted to 13,222 . This figure comes from the recent study l’Étude sectorielle sur les effectifs maritimes au Québec recently released by the Human Resources Sectorial Committee of the Maritime Industry (CSMOIM). The study also shows that Quebec marine-sector companies will hire 1,966 persons over the next three years.
Export Development Canada (EDC), Canada’s leading provider of trade financing and insurance, announced that it has renewed its community investment partnership with CARE Canada for another three years. The announcement was made on the fifth anniversary of the partnership.
Since 2009, CARE and EDC have worked together on several economic development projects in emerging markets. As part of the partnership, EDC assigns employees to CARE’s small business and micro-finance projects in the developing world.