Feds' operation UK
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THE WORLD'S biggest express parcels carrier is stepping up its activities in Britain and Europe, in a move which will mean more competition for international road hauliers.
American-owned Federal Express started operations in Britain almost a year ago, when it bought Gelco Express, and has been establishing a network in Europe.
Its company name is being seen on Britain's roads for the first time this month on a dozen new Ford Transits based in London.
Collection and delivery work outside the London area is being done by Lex Wilkinson at present.
Trunking is by air, and at present Paris, Brussels, Munich, Frankfurt, Stuttgart and Hamburg are linked with much of Britain.
1)elivery is promised by noon the day after collection, and the firm's aim is to bring this forward to 10.30am for at least some destinations.
In practice, the maximum consignment weight is 32kg, • hut this will rise to about 70kg as volumes pick up.
A radically new rate structure means that customers will be offered basic flat rates for most destinations in Europe, so that it should cost the same to send a package, door-to-door, from Britain to Paris. Milan and Munich.
Typical published rates arc for lkg: 03.80; 5kg: £30.20; 10kg: 08.20; and 3 2kg: Federal has established a hub air depot at Brussels. This is similar to its United States hub at Memphis, which was the model used by TNT and Lex Wilkinson in Britain.
Federal claims to have negotiated a special agreement with the Belgian Governmen which allows less documenta non and faster Customs clear ance than is available to othe carriers.
The company hopes t. reach similar agreements wit: other countries.
Indication of the size .o Federal Express is given in it annual report published las year, where revenue from ex press parcels was stated a Si, 436m.
Lex Wilkinson' relationship with Federal Ex press is described as "ver friendly and informal", an could bring long term advan tages to both sides. Lex ha been looking for some time .z the European market.
Administrative systems, fc example on proof of deliver and general attitudes of th two companies are compat ble, according to Lex Wilkir son managing director Coli Millbanks.