US retailers look to consumers to save an industrial sector in the doldrums
US consumers are expected to step into the breach again to generate higher volumes of ...
TSLA: NOT ENOUGHBA: NEW LOW AS TENSION BUILDSGXO: SURGINGR: EASY DOES ITDSV: MOMENTUMGXO: TAKEOVER TALKXOM: DOWNGRADEAMZN: UNHARMEDEXPD: WEAKENEDPG: STEADY YIELDGM: INVESTOR DAY UPDATEBA: IT'S BAD
TSLA: NOT ENOUGHBA: NEW LOW AS TENSION BUILDSGXO: SURGINGR: EASY DOES ITDSV: MOMENTUMGXO: TAKEOVER TALKXOM: DOWNGRADEAMZN: UNHARMEDEXPD: WEAKENEDPG: STEADY YIELDGM: INVESTOR DAY UPDATEBA: IT'S BAD
DHL, FedEx and UPS are among many logistics players facing the heat of scrutiny from India’s antitrust regulator, the Competition Commission of India (CCI), over alleged anti-competitive practices.
An investigation has reportedly been launched after CCI received complaints of companies’ cartel behaviour and price-fixing as they eye expansion in the booming e-commerce market. The complaint was led by the Federation of Indian Publishers (FIP), according to industry sources.
The companies in the CCI crosshairs colluded on fixing rates for a raft of services at airports, it is alleged. And following the complaint, the CCI has scrutinised a volley of emails and other electronic data shared with customers on pricing tariffs.
However, FedEx, DHL and UPS individually refuted the allegations and said they remained fully committed to legal compliance and would co-operate with the authorities.
“FedEx categorically denies the allegations in the complaint,” the US company said. And DHL Asia Pacific told The Loadstar: “As this case is still under investigation, we cannot comment on the specifics. DHL always operates in full compliance with all laws and regulations.”
A finding of cartel behaviour could attract a fine of up to three times the guilty party’s profit in each year the fee was ‘fixed’, or 10% of annual revenue for each year of violation, whichever is greater.
A few years ago, France’s competition regulator heavily fined many parcel delivery companies, including FedEx and DHL, for colluding over fuel surcharges.
Meanwhile, in a pricing revision, DHL Express pushed up Indian service rates and surcharges by 6.9% from 1 January.
“With the annual price adjustment, we can continue to invest in improved solutions, increase flexibility across our network and focus on our responsibility to the environment to deliver resilient and sustainable logistic solutions,” the Germany-based logistics giant said.
The Indian market has emerged as a hot spot for logistics industry verticals, as the economy is forecast to grow faster than its larger counterparts and benefit from growing trade diversification trends in Asia, despite Vietnam taking a lead on the alternative sourcing market reconfiguration, due to its first-mover advantages.
Reflecting the newfound interest, express logistics heavyweights and cargo airlines have significantly beefed up their offerings out of India to tap into the rapid growth of e-commerce trade.
DHL has unveiled a $500m expansion programme for India running through 2026, which it said would take its warehousing capacity from 12m sq ft to 22m and its workforce to some 25,000.
Last month, FedEx boosted its Indian play with a $100m “tech hub” plan at Hyderabad, which followed the roll-out of an enhanced priority service out of India for major global destinations, bundled with delivery commitments of two to three business days for the US and two working days for Europe.
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