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ESC – European Shippers' Council

ESC supports TNT and FedEx merger

A few years ago the European Shippers’ Council strongly opposed the merger between UPS and TNT.

Our members heavily complained about the possibility of losing one of the three (TNT,UPS and DHL) European express carriers and this would result to lack of competition in the European market. UPS and TNT were active in the same areas of the European Express market and provided the European industry the same type of services.

Survey

The plan of FedEx to takeover TNT received another response from our members. The ESC sent out a survey to its members. The outcome of this survey was that 90 percent of the ESC members welcomed the TNT-FedEx deal.

The reasons why to welcome the merger was almost unanimous. The Express customers/users never saw FedEx as an option for the Intra-European market. FedEx is in the eyes of many European shippers a great way in moving cargo from Europe to and from the US, but not for moving packages from EU member state A to EU member state B. This Intra-European market is still dominated by TNT, UPS and DHL. The number (after) of pan European express carriers will remain the same after this merger, 3 big providers.

TNT

Another reason to support this merger is the financial situation of TNT. Without a takeover and a financial impulse, TNT will probably not survive for a very long time in the express market. Competition will probably grow due to the strong position of FedEx and better logistic services will be provided to the European industry.

For more information please contact Joost van Doesburg via j.v.doesburg@evo.nl or +31625010898.

This article was posted on July 14th, 2015 by ESC under News