Consolidation of European Small Package Freight Possible

If you ship to or in Europe the UPS bid for TNT could limit your choices and raise prices over time. UPS sees this move as favorable and profitable. The article below asks if the other big players will step in. If they do the outcome will not be much different but the beneficiary will be. Shippers will pay the price in some manner.

Will FedEx bid for TNT Express?
UPS buyout offer prompts talk of possible bidding war.
By Mark B. Solomon            www.dcvelocity.com
Now that UPS Inc. has proposed to ante up $6.4 billion for TNT Express, will FedEx Corp. see its chief rival and raise it a few billion dollars?

Atlanta-based UPS’s unexpected and unsolicited Feb. 17 bid for TNT Express prices the offer at 9 euros a share, or $11.87 a share in U.S. currency. TNT Express’s rejection of the UPS proposal sets up a possible bidding war between the two U.S.-based parcel giants for the Dutch delivery concern, one of the big four global parcel players.

At stake is no less than possible domination of the intra-European delivery market by UPS—and whether FedEx, or the third big global competitor, DHL Express, will let it happen. …

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