This month saw FedEx Freight increasing its base rates 5.9 percent. The nation's second-largest less-than-truckload (LTL) carrier has followed competitor Old Dominion Freight who increased their prices 4.4 percent last month. The FedEx rate increase suggests that the freight companies are keen to increase profits rather than continue in a destructive rate war.

As retailers begin to restock their inventories, the increase in freight volumes combined with increased rates will allow carriers to turn a profit. Despite the rate increase from FedEx Freight, the overall rates are still five to fifteen percent lower than they were a year ago.

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UPS have announced plans to furlough approximately 300 of its 2800 airline pilots. The company has been working with its union, the Independent Pilots Association (IPA), for the past year to identify ways to cut operating costs including pilots taking short- and long-term leaves of absence; job sharing; reduction in flight pay guarantees and early retirement.

The pilot furloughs will be part of a company-wide cost-cutting program that UPS has been working on over the last two years. The $1.4 billion cost reduction has included a freeze on management salaries; suspension of the match for 401(k) plans and retiring older aircraft. In January, UPS announced it was streamlining its entire domestic small package structure, eliminating 1800 management and administrative positions.

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The British Home Office has completed the installation of a £13 million ($20.35 million USD) shared services enterprise resource planning (ERP) system. The new Oracle eBusiness shared services system provides finance, procurement and human resources systems to a number of British government agencies. The Home Office estimates that the will save approximately £50 million ($78.28 million USD) in total.

The three year phased implementation should achieve greater back-office efficiency, headcount reductions and procurement savings with better vendor management. The Home Office engaged Fujitsu as its implementation partner and the project was delivered on time and within the specified budget.

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Estimates of imports in December showed the first increase in thirty months at US container ports. According the Port Tracker, published by the National Retail Federation (NRF), the first five months of 2010 should see increases over 2009. The rise in imports is forecast as economists expect to consumers to return to the stores in 2010. Retailers have spent most of 2009 in destocking mode and a rise in imports reflects some optimism in the retail industry as a period of restocking commences.

Port Tracker measures the volume from the top ten US ports and 2009 saw imports fall considerably over 2008, a 17 percent decline, and the lowest import volume since 2003.

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