Shipments to and from Japan will speed up under a new international delivery agreement between FedEx Express and Japan Post scheduled to go into operation in the autumn as the postal group heads for a planned mammoth IPO by the end of 2015.
Through the bilateral agreement, FedEx will provide its International Economy (IE) operations for Japan Post’s outbound international delivery service U-Global Express (UGX), which will be expanded to cover US destinations. Japan Post will handle pick-ups from shippers in Japan, while FedEx will handle customs clearance and delivery to the US final destination.
In terms of inbound shipments, once packages have been picked up and shipped from around the world and cleared through customs by FedEx, Japan Post will handle the last mile domestic delivery for certain packages.
“This collaboration will combine the strengths of both companies – the operational strength of FedEx with its extensive global and US domestic delivery network and customs clearance experience, and the domestic network of Japan Post,” the US company stated.
“Together, FedEx and Japan Post offer a faster and more reliable international delivery service to customers in Japan and around the world. In particular, the collaboration will increase the delivery options for businesses that need transportation solutions for comparatively small and lightweight yet high value products coming from the rapidly expanding e-commerce market.”
Meanwhile, Japan Post yesterday formally applied for approval to float on the Tokyo Stock Exchange, with share placements in the group’s holding company and its two financial subsidiaries, Japan Post Bank and Japan Post Insurance. Under government plans, the state would reduce its stake in Japan Post Holdings to about one third, while Japan Post Holdings will sell about half of the two financial units.
The group is one of the biggest financial institutions in Japan as well as providing postal services through Japan Post Co., which will remain fully-owned by the holding company.
