Update 2013-01-14: UPS' purchase of TNT was blocked by EU antitrust concerns.
Update 2015-03-07: And now FEDEX is preparing to buy TNT.
UPS has bought one of its main worldwide competitors, TNT. This narrows the playing field for worldwide courier services, mainly leaving only UPS, DHL and FedEx. I consider it bad news for the long term.
Following Dutch tradition, independent TNT had a very good infrastructure in Europe and in Asia. And good rates too.
Customers may stay with the wrong impression that the distinctive orange TNT logo stands for a strong independent competitor on the market. No, its now a subsidiary of UPS.
For exporters this is not good news, as competition is the main factor that keeps prices in check. US authorities do not seem to be bothered, but the EU is likely to look into antitrust issues.
Locally, TNT staff appear worried, some say they are considering leaving, apparently expecting a survival rat race. Some TNT customers have informed me that their prices for Europe have decreased from an already competitive position, probably temporarily. UPS prices for US appear to fluctuate. While TNT staff is worried and fighting to keep their jobs, competition with DHL and FedEx appears to have intensified on short-term.
But in the long-term, exporters and end-users will not benefit from this consolidation. And it may trigger yet another mega-merger. If this trend continues the current three major players will degrade into an oligopoly of two major courier services worldwide. Even with three players - its not a free market.
Related
UPS-TNT Express $7B Deal Falls Apart Over Antitrust Concerns - 2013-01-14
http://www.forbes.com/sites/abrambrown/2013/01/14/ups-tnt-express-7b-deal-falls-apart-over-anti-trust-concerns/
UPS buys TNT Express for $6.77 billion - 2012-03-30
http://www.aircargoworld.com/Air-Cargo-News/2012/03/ups-buys-tnt-express-for-6-77-billion-2/306115