Boeing to Supply 767's for DHL US Operations

[shooter]

Apparently, Penguin and Shooter believe that DHL will never utilize the services of another carrier to deliver packages in this country. They're conveniently overlooking the fact that DHL already does so in the form of "independent contractors," and that they themselves are but one of many such contractors. Oh well, I hate to break the news to 'em now. Ignorance is bliss, and they seem like pretty blissful guys...

not true. I understand DHL is #1 in the world buy buying space on other carriers. A fleet that is peanuts when you compare them to UPS and FedEx. You are saying that DHL will do the same with UPS and FedEx and you could not be more wrong.

Why do you think FedEx and UPS keep buying into the foreign market? Why do you think TNT is in all the UPS and FedEx talks? If you think it is to align themselves for an infusion of DHL cash, again you are wrong.

UPS and FedEx know DHL is in charge of the world delivery while they have the US. They want part of the DHL world market while DHL wants the US. To think they will all come together as one large logistics/delivery giant is ludicrous and illegal (at least in the US).

If you think I am blissfully ignorant by my refusing to buy into your world domination plan....then blissful I will be (in your eyes only).

Good luck with your desire to sew a purple and brown patch on your shoulder....It will NEVER happen.

 

[Whistlin' Dan]

Good luck with your desire to sew a purple and brown patch on your shoulder....It will NEVER happen.

Just to clarify my position-

The only way any ABX/Astar/Polar pilot will ever wear a "Purple or Brown patch on their shoulder" is if they quit their respective jobs and get hired at one of those 2 companies (which apparently, quite a few of them are trying to do). A partnership between any of these players would ultimately be for the benefit of the stockholders, not the employees.

I think that in terms of jobs, it might hurt the guys at UPS and FedEx more than A/A/P. The responsibility for much of the International flying and most foreign distribution would ultimately fall to DHL, I.E., subcontractors. No more Subic/Cologne bases. "Easter egg" 747's and MD-11's at Anchorage and JFK.

Nobody here can say with any certainty what these guys are planning to do. This is one of those situations where "actions truly speak louder than words." Or in this case, non-actions.

1) Any company that wants to be a player in express mail MUST have a comprehensive ground distribution network in this country. DHL isn't building one.

2) Any company that wants to be a player MUST have a state-of-the-art air distribution network in the country. DHL isn't building one of those, either.

3) Fixing the problems here (should they decide to do so), would take billions, spread over years. With the slowing of growth in the domestic market and the increased competition in International, DHL doesn't have "billions" OR years.

 

[big_al]

I agree 100% with you. It's all about generating profits, and if these companies can make alliances that benefit them they will. Capitalism usually wins out in the end.

market consolidation is not capitalism

 

[shooter]

Whistlin' Dan;1277550]
Just to clarify my position-

The only way any ABX/Astar/Polar pilot will ever wear a "Purple or Brown patch on their shoulder" is if they quit their respective jobs and get hired at one of those 2 companies (which apparently, quite a few of them are trying to do). A partnership between any of these players would ultimately be for the benefit of the stockholders, not the employees.

Again, it will never happen.

I think that in terms of jobs, it might hurt the guys at UPS and FedEx more than A/A/P. The responsibility for much of the International flying and most foreign distribution would ultimately fall to DHL, I.E., subcontractors. No more Subic/Cologne bases. "Easter egg" 747's and MD-11's at Anchorage and JFK.

In the event it started snowing on the fires down below…I think you would be correct but I have not thought about it too much.

Nobody here can say with any certainty what these guys are planning to do. This is one of those situations where "actions truly speak louder than words." Or in this case, non-actions.

1) Any company that wants to be a player in express mail MUST have a comprehensive ground distribution network in this country. DHL isn't building one.

In 2004 DHL launched a $1.2 billion investment program to add 7 new regional sort centers and have since added an additional 5 more. Right? Sounds like they are building to me. It may not be up to what you think they need to do, but they are building.

2) Any company that wants to be a player MUST have a state-of-the-art air distribution network in the country. DHL isn't building one of those, either.

I thought the addition of the RIV was part of that network and they needed it. Bad! They do not have the freight to expand an additional large mid-country sort so what do you want them to do? Build an Indy hub just so they can say they have one?

3) Fixing the problems here (should they decide to do so), would take billions, spread over years. With the slowing of growth in the domestic market and the increased competition in International, DHL doesn't have "billions" OR years.

I agree with some of what you say here. They do not have years or that much more cash to spend. But that is entirely their fault. They attacked the Airborne buyout and integration without professional experience or input. Focused a multi-million dollar add campaign without having the infrastructure complete to handle the customers so most left. Not to even mention that they alienated the customer base they just purchased from Airborne and lost much of them as well. You may take offense to this next remark, but keep in mind that I understand it is not the workforce (i.e. yourself) but management. By not providing an on time reliable network to service the customer, it is hard to keep the customer. If you are in the express business, well, to steal a couple lines from the UPS and FedEx adds….On time, every time….the world on time….when it absolutely has to get there… Nothing in the express business says things like…well we had a mechanical problem….but it was foggy….the guy who loads our plane had to keep running to the bathroom.

DHL does not understand what "express" means yet. Right now they are just "DHL it will get there, eventually." I hope this changes and changes quickly because air delivery is express delivery or critical international delivery. If they keep going with the status quo, it will be an all ground US operation servicing only international customers with aircraft. And that’s not good for any of us.

 

[Jetlaggy]

http://www.aircargonews.net/article.asp?art_id=1746

Secret DHL/Lufthansa partnership

13-Mar-2007 : AIR Cargo News has discovered that DHL and Lufthansa Cargo are in negotiations to create a new partnership that could be even bigger than DHL’s recent tie-up with Polar Air Cargo in the US.

A secret tender process is believed to have included Emirates SkyCargo, Cargolux and Lufthansa Cargo. The selection of the preferred partner has now been concluded, with Emirates and Cargolux eliminated.

The exact details of the tender and the full scope and scale of the partnership, are yet to be revealed in public. However, an industry source described it as ‘a massive deal’. The source also stated that both Emirates and Cargolux fought hard to win the contract.

The source states that Lufthansa Cargo believed it was vital for the future that the company was able to protect its home market.

DHL and Lufthansa will now enter a period of intense negotiations tthrash out the exact details. It is believed that the negotiations will take up to four months to reach a conclusion, at which time the deal is likely be made public.

DHL has elected not to follow UPS and FedEx by investing in its own fleet of widebody freighters, but have instead created partnerships with large cargo carriers to guarantee capacity.

Lufthansa Cargo’s director of corporate communications, Nils Haupt, was unable to confirm or deny that LH Cargo had won the tender process, but stated that: “LH Cargo was always in talks to extend the partnership and extend co-operation with DPWN.”

Both Cargolux and Emirates told Air Cargo News that they did not wish to comment on the outcome of the tender process.