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United Parcel Service to pick up Overnite Corp - FedEx to face the heat
17 May '05
2 min read
In a a transaction involving about $1.25 billion in cash, leading logistics provider and Atlanta based United Parcel Service Inc(UPS) has charted plans to purchase another logistics provider Overnite Corp.
The move has been interpreted by industry as juxtaposing the nation's biggest package shipper in direct competition with No. 2 player FedEx Corp.
Richmond Va- based Overnite, subject to the deal being taking place will go to UPS that moves small packages in its trucks, to add business from commercial clients who want to ship appliances and other freight in the United States.
Officials announced plans to set up an air freight network by building five US airport hubs to manage freight.
The deal will reap in profits when Asian goods particularly textiles, apparel, electronics and other shipments to the US have gone up in recent times.
Ports off the West Coast have been clogging due to heavy inward traffic from Asia as imports, including toys, textiles and other goods, rose 22 percent in February, recent government figures convey.
Overnite has a fleet of 6,700 tractors and 22,000 trailers, which will help UPS to ship an item like a commercial freezer and ship it overnight, across the country. Such capability to handle large items was not available so far.
Thus, UPS - Overnite alliance will sing tunes of success for the former, logistically speaking.
The move has been interpreted by industry as juxtaposing the nation's biggest package shipper in direct competition with No. 2 player FedEx Corp.
Richmond Va- based Overnite, subject to the deal being taking place will go to UPS that moves small packages in its trucks, to add business from commercial clients who want to ship appliances and other freight in the United States.
Officials announced plans to set up an air freight network by building five US airport hubs to manage freight.
The deal will reap in profits when Asian goods particularly textiles, apparel, electronics and other shipments to the US have gone up in recent times.
Ports off the West Coast have been clogging due to heavy inward traffic from Asia as imports, including toys, textiles and other goods, rose 22 percent in February, recent government figures convey.
Overnite has a fleet of 6,700 tractors and 22,000 trailers, which will help UPS to ship an item like a commercial freezer and ship it overnight, across the country. Such capability to handle large items was not available so far.
Thus, UPS - Overnite alliance will sing tunes of success for the former, logistically speaking.
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