DHL in the US - Latest

[Whistlin' Dan]

So, basically, DHL tears up it's contracts and "invites" everybody to re-bid? There are a lot of airplanes out there doing nothing, and a lot of guys who don't want to be on the street, especially in this economy.

So much for "Quantum Leap"

 

[shooter]

So, basically, DHL tears up it's contracts and "invites" everybody to re-bid? There are a lot of airplanes out there doing nothing, and a lot of guys who don't want to be on the street, especially in this economy.

So much for "Quantum Leap"

Plus you have to look at the ability for such a small aircraft operation to remain in business. Is it worth the effort and expense for a single digit fleet? They are usually the first to lock the doors on you without notice.

 

[erichartmann]

Interesting take Eric. I wonder if DHL would do as you say. Their past experience has been they are complete idiots when it comes to business in the USA. I personally do not think they are capable of learning either A) lessons from their past disaster or B) not trying to do business here as they do abroad.

I really do wonder what will become of them now that their monopoly is 1 year over. Will they even be able to compete globally now they do not have that nest-egg any longer? They do provide a good product overseas, but that is not the USA and now they have a stronger international UPS and FedEx to contend with there.

Time will tell. But I think they are tango uniform in the USA with no ability or even desire to learn how to do business here. Had they been willing to learn, they would have listened to Airborne in the first place. Yes, they admitted that already. But what (if anything) will they do about it?


EDIT: Evidence of that can be seen right here with the first post if the thread. Weenie seems to be in some upper management role and seems to toss a few back with some big brass in DHL. But what does he imply? That contractors "will" conform to the way DHL does business "everywhere else". What kind of dope thinks the contractor tells the business owner what flies and what does not? What morons think ABX made the decisions that DHL was responsible for? Well, seems DHL are the dopes and morons since they seem to be placing blame on an outside contractor for their failures and decisions. If ABX were not providing the contracted services, then DHL would definitely file breach of contract as they have in the past with so many. Then they b!^*# and moan about ABX fought us over this and over that. Well dopes, that is because you were destroying yourselves from the inside out. ABX tried to tell them (they seem to think that is fighting them) and then ABX did it the DHL way. The way they wanted and did not listen to what was being told to them. And....the rest is history. Look what happened doing it the "DHL way" here in the USA. Good job.....!#&$%$

As I said, it is a very big "IF". I think they could. I don't know if they will.

 

[shooter]

I understand the big if. Just in the short time since the purchase of Airborne by DHL there have been things I thought I would NEVER see a business do. So, nothing surprises me with these people anymore. I guess there is a chance that one of the surprises could be a good business move for a change. Like the old saying goes; Even a broken clock is right twice a day.

 

[EuroWheenie]

Guys, the reason DHL stays in the US is not to serve the US market - it's to serve our international customers. They've insisted we continue to provide an import and export business in the US, and that's all that'll be provided for the foreseeable future. The company has supposedly analysed the volumes, and seem to think it'll be around 75-100K shipments a day, and have also come to the conclusion it can be done with a fleet of around 20 to 30 aircraft.

All ground-ops hubs have already been closed, along with around 300 of 400 stations. In other words, a little less than 25% of service centres will remain, and there'll be no linehaul by road. The US market is not expected to generate enough revenue to sustain a return to profitability; the majority of the business will be imports to the US.

Shooter

You may not have been privy to the inner workings of our relationship with ABX Air. ABX management may well have had their reasons to resist, and actively work against, the changes DHL wanted them to make. But, in the end it helped bring down the business. It's not the only reason, not even the single biggest reason, but it is one of the reasons. Things are a fair bit more complicated than what you're suggesting, as an example ABX refused to provide the shipment details DHL requires - and DHL requries details to the nth degree .(C-containers with no tracing possibilities was one of the issues). ABX also did what they always done, namely fill up the aeroplanes even with 2nd day freight - and that's a surefire way of eroding your own revenue potential (why pay for 1 day service if the cheaper 2nd option delivers the same result?).

Suffice to say, the relationship between DHL and ABX was somewhat toxic. That's one of the things that'll be changed this time round.

 

[shooter]

You're right that I may not be privy to the Monday morning quarterbacking. But I was privy to the daily operations of the system and the asinine decisions that came down from your DHL NCG group. That would be the No Clue Group. Oh, and the asinine decisions they came up with. But they could not come up with them in a timely manner either. They had to go through 5 miles of red tape to even get an answer of what they wanted to do. I KNOW what DHL operations means....they are worthless. I will not insult your operations as I know you have a good product over there. But here in the US my friend, you have idiots working for you. Good luck with them.

 

[rotor&wing]

So much for "Quantum Leap"

Kinda like your aviation career Jim?

 

[erichartmann]

Guys, the reason DHL stays in the US is not to serve the US market - it's to serve our international customers. They've insisted we continue to provide an import and export business in the US, and that's all that'll be provided for the foreseeable future. The company has supposedly analysed the volumes, and seem to think it'll be around 75-100K shipments a day, and have also come to the conclusion it can be done with a fleet of around 20 to 30 aircraft.

All ground-ops hubs have already been closed, along with around 300 of 400 stations. In other words, a little less than 25% of service centres will remain, and there'll be no linehaul by road. The US market is not expected to generate enough revenue to sustain a return to profitability; the majority of the business will be imports to the US.

Fair enough. Its their business and they can do as they wish.

...(C-containers with no tracing possibilities was one of the issues).

Frankly I don't see why that would be an issue if clearly communicated. The same method of tracking "A" containers could have been applied to the "C" container.

ABX also did what they always done, namely fill up the aeroplanes even with 2nd day freight - and that's a surefire way of eroding your own revenue potential (why pay for 1 day service if the cheaper 2nd option delivers the same result?).

I can't beleive that could be done without the knowledge and consent of DHL's system control. BTW, the other side of that arguement is that is makes no sense to provide (and pay for) linehaul to a destination if a partially empty aircraft is going there. All one need do is hold the freight for 2nd day delivery.

Suffice to say, the relationship between DHL and ABX was somewhat toxic. That's one of the things that'll be changed this time round.

Again, fair enough from my POV, but I'm just a line pilot trying to get the aircraft and its load of freight where it's supposed go.

 

[mxer]

On the idea of second day freight going on the aircraft, I can speak first hand as a customer that they did hold the freight untill the appropriate time. I personally had a shipment held at the hub and that was the exact reason that was given.

 

[flyinboxes]

Yes, after they were caught. It costs money to fly 2nd day, and alot more when you don't know you are doing it. It wasn't just second day either.