In 2013, when UPS wanted to purchase express delivery firm TNT, the European Shipper’s Council (ESC) was sour on the deal, fearing a lack of competition between intra-Europe express carriers, given the scenario that would have resulted in having two players dominating the market. But the pending FedEx purchase of TNT has been given the group’s blessing.
A council survey of ESC members revealed that 90 percent were in favor of the FedEx acquisition. The ESC members said they didn’t see FedEx as significant competition for intra-Europe express business, but rather an efficient means to move cargo from Europe to and from the United States. The intra-European market is currently dominated by UPS and DHL.
Also, the ESC says it supports the deal because without it, the financially struggling TNT wouldn’t make it much longer on its own. It is the belief of ESC members, according to the survey, that competition will probably grow due to the strong position of FedEx, and better logistic services will be provided across Europe.