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Tennessee Governor Bill Lee joined FedEx executives to announce an additional investment in the FedEx Express World Hub in Memphis

FedEx Express announces additional Memphis hub investment. Image: Wikimedia/ Alan Radecki

Tennessee Governor Bill Lee joined FedEx executives to announce an additional investment in the FedEx Express World Hub in Memphis. An additional $450 million investment will accelerate the modernization and expansion project which was announced in March 2018 and now totals more than $1.5 billion.

The FedEx World Hub, which currently has 11,000 team members and 163 aircraft gates, is the largest sort facility in the FedEx Express global network. Due to growing customer demand, FedEx has approved plans to make additional investments at the Memphis World Hub.

FedEx has a longtime presence in the Memphis airport and business community, and this investment reflects our continued commitment to Memphis and the state of Tennessee.

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Air Freight

Australia Post and Qantas have announced an expanded domestic and international air freight agreement to support the growing demand for parcels.

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Australia Post and Qantas Freight renew agreement to support eCommerce growth. Image: Australia Post

Australia Post and Qantas have announced an expanded domestic and international air freight agreement to support the growing demand for parcels.

Marking nearly a century of partnership between the two brands, it will benefit online shoppers and businesses across Australia by increasing capacity and providing greater network flexibility to meet customer expectations.

The seven-year agreement valued at over $1 billion will give Australia Post customers access to Qantas Freight’s dedicated freighter aircraft and priority access to the cargo space on up to 1,500 Qantas and Jetstar passenger flights to over 110 destinations each day, in addition to space on partner airlines globally.

It will also see the introduction of up to three Airbus A321P2Fs (Passenger to Freighter) to the freighter network used for Australia Post. Qantas will be the first airline in the world to operate the A321 as a freighter aircraft.

Each A321P2F will add nearly 50 per cent more capacity – or an additional nine tonnes – compared to the existing Boeing 737 freighters, with the first A321P2F due to enter the fleet in October 2020.

Christine Holgate, CEO and Managing Director, Australia Post, said the strategic alliance with Qantas means Australia Post and its customers can continue to power the eCommerce engine that’s driving Australian trade domestically and internationally.

“Australia Post plays a critical role connecting Australian businesses and communities to each other and the rest of the world, and with the continued growth in online shopping, we can now take it to new heights,” Ms Holgate said.

Jersey Base White Blank Stitched Cool Mariners “This agreement will further boost our unrivalled, dedicated air freighter network with newer aircraft and more capacity right up until the opening of the new Western Sydney airport in 2026.

“The enhanced air freighter network complements $900 million in investment across our network through automation and infrastructure, and provides the speed, flexibility and reliability customers expect.

“It means that we can build flexibility into the air freight network to manage increased volumes and demand in the lead-up to Christmas. Last year we flew more than 400 tonnes of mail on our busiest night, and more than 40 million parcels during December; this year, we expect to exceed both those targets.”

Qantas Group CEO, Alan Joyce, said the seven-year agreement was a vote of confidence in the future growth in eCommerce and will support the rising demand for next-day delivery.

“This builds on the longstanding partnership between Australia’s national carrier and the nation’s postal service to deliver for customers.

“Consumer preferences and expectations are rapidly changing and together with Australia Post we’re responding by growing our dedicated freighter fleet to provide a better experience for consumers and businesses,” added Mr Joyce.

The partnership between Australia Post and Qantas dates back to when the national carrier first started flying airmail for the postal service in 1922.

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Air Freight

A glitzy website or a modern app aren’t enough to satisfy today’s savvy online shoppers.

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Transparency and personalization are the next frontiers for online retailers, UPS study finds. Image: Wikimedia/ Eric Salard

A glitzy website or a modern app aren’t enough to satisfy today’s savvy online shoppers. They demand upfront transparency on fees, control over the delivery process, a clearly-stated returns policy and loyalty rewards, according to new research from the 2019 UPS (NYSE: UPS) Pulse of the Online ShopperTM study.

The 2019 UPS Pulse of the Online Shopper study captured evolving trends, preferences and expectations of online shoppers in 15 countries and regions, including the U.S., Asia, Europe, Canada, Mexico, Brazil and, for the first time, India. This latest Pulse examined the generational impact that Baby Boomers, Gen Xers, Millennials, and Gen Zers are having on retail trends, offering retailers, wholesalers and manufacturers intelligence that can help them grow and compete globally.

“For seven years, the UPS Pulse of the Online Shopper has spotted emerging e-commerce trends before they became mainstream,” said Kevin Warren, UPS chief marketing officer. “This proprietary research is just one way UPS continues to offer valuable insights that help retailers and shippers make strategic decisions to meet changing global consumer needs.”

Key themes pulled from this year’s study include:

  • Jersey Base White Blank Stitched Cool Mariners The critical customer experience begins with research. Ninety percent of customers research items before purchasing them online, while younger generations are most likely to be influenced by customer reviews. Ninety-five percent of all buyers expect to see all shipping fees and taxes totaled before they’ll complete the purchase.
  • Jersey Base White Blank Stitched Cool Mariners Online shoppers want to feel valued and be rewarded. As a result, about one in five (19%) of consumers have more than five loyalty memberships. Reasons given for joining include free shipping, members-only discounts and rewards points.

Meanwhile, online marketplaces remain popular: Ninety six percent of online shoppers have used a marketplace, while 36% of consumers worldwide intend to purchase more on marketplaces in the next 12 months. Worldwide, 48% of consumers buy items impulsively on marketplaces.

  • Shoppers still want choice and convenience, but they’d rather not pay for it. Respondents like next-day deliveries, but they will consider other options – such as lower fees or incentives – for slower shipping. Millennial shoppers are more likely to choose accelerated delivery options than other age groups. Generally, though, online shoppers show a very low appetite for paying for shipping. That’s why they’ll take various actions to obtain free shipping, including adding items to the cart (36%), choosing the slowest transit time (32%) and searching online for a promo code (32%).

Fifty-six percent of online shoppers track deliveries, with Americans the most likely to be active trackers. (When it comes to offering visibility and tracking solutions UPS offers consumers UPS My Choice and the recently launchedUPS My Choice for Business, designed for small and medium-sized businesses.)

  • Returns remain key to creating return customers. Returning merchandise remains a key demand for online shoppers, with 73% of surveyed consumers responding that the returns experience affected whether they would continue shopping with a retailer. Globally, 36% of online shoppers returned an item in the previous three months.

Globally, about two-out-of-three shoppers (63%) ship returns back to sellers/retailers. This method is the most popular in Europe and Asia-Pacific (APAC), where 67% of shoppers ship their returns. Meanwhile, the main reason cited for a poor returns experience is delay in getting a refund (25%). Having to pay for a return annoys a significant percentage of consumers (24%), as does a delay in receiving an exchange or a replacement item (21%).

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Air Freight

Rhenus Logistics is implementing a number of key initiatives intending to help meet changing customer demands within the Air & Ocean sector.

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Rhenus Air & Ocean division takes off. Image: Rhenus Group

Rhenus Logistics is implementing a number of key initiatives intending to help meet changing customer demands within the Air & Ocean sector. A combination of new automated systems and technical enhancements is helping Rhenus consolidate its position within the industry.

Customers now expect highly competitive prices alongside the latest technologies – something that all logistics providers must strive to deliver. Rhenus continues to be proactive surrounding Industry 4.0 and implementing technological enhancements through warehouses and transport.

The most recent is an investment in its Rade warehouse in Hamburg, Germany, where it has rolled out the latest Bluetooth, wireless and IoT technologies. In addition, Rhenus is currently investing in the development of its own bespoke transport management system (ROCS), due to be rolled out across its UK hubs in the coming months.

Rhenus UK Air & Ocean commercial manager, Jonathan Rayton, commented: “Air & Ocean is experiencing an unprecedented period of change – one in which automated systems and customer service are becoming ever more important. Although customer demand is a key factor driving this change, the entry of smaller, more ‘disruptive’ companies into the marketplace is also contributing to a significant shift in Air & Ocean.”

“The automated system at Rade is just one of many new technological advancements for Rhenus. Indeed, the proactive nature of the company is allowing us to build an excellent portfolio of solutions across Air & Ocean, Road, Warehousing, Contract Logistics and Home Delivery. It’s certainly an exciting time for both the company and industry.”

Jonathan continued, “Rhenus Logistics differentiates itself by providing a dedicated team of talented professionals alongside its technological offering. Among the constant flow of new technologies, customers’ desire to liaise with a person instead of a machine remains constant. Whether it be trust, dealing with customer apprehensions or explaining complex systems, person to person interactions matter.”

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