The FedEx-TNT merger could mark the end of ‘ugly freight’

As the FedEx-TNT merger concludes, international parcel broker ParcelHero warns the takeover could mean increased costs and transit times for large and heavy items.

When heavy and outsize loads need to be shipped, many businesses and consumers traditionally choose TNT Express. It has made so-called ‘ugly freight’ a specialty. According to ParcelHero, the FedEx takeover of TNT Express could impact on its large and heavy item deliveries.

>Read: FedEx acquires TNT Express

“TNT is very popular with users shipping large and heavy deliveries. Many carriers have restrictive parcel size and weight restrictions; but TNT has significantly greater flexibility on the size of packages it accepts, operating bigger vehicles than other carriers, generally with tail lifts capable of loading pallets and heavy parcels,” ParcelHero’s Head of Consumer Research, David Jinks MILT.

“FedEx (is a) specialist in international delivery services; but have no culture of supporting ugly freight to any extent. If TNT Express is steered away from such items now they are a part of FedEx – and it’s undeniable that they do require more investment and expertise – the loss of these services would be keenly felt,” he added.

According to Jinks, large and heavy items are frequently shipped through ParcelHero’s parcel broker service which means the loss of TNT Express’ unique and cost-effective approach to this part of the delivery market.

“Many carriers avoid outsize loads as they don’t fit easily with their systems: or they charge significantly more for such shipments; but TNT only last year opened a Sydney ‘superhub’ capable of sorting outsize objects over 1.5 metres in size or 30kg in weight to reinforce its ugly freight capability. The Express large and heavy items service needs to be protected after the take-over,” he added.

Jinks acknowledged the benefits of the merger, considering TNT Express’ strength lies in its European ground-based operations, while FedEx is known for its Europe-UK to America quality international service. “They are largely complimentary and won’t constitute the monopoly the UPS-TNT proposed merger would have done.”

Praseeda Nair

Praseeda Nair

Praseeda was Editor for GrowthBusiness.co.uk from 2016 to 2018.

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