DHL in the US - Latest

[Whistlin' Dan]

As a pilot and International DHL customer, how will the domestic portions of an International Express shipment be picked up and delivered if there is not domestic service??? Are my 3-4 day express shipments now going to take 7-9 days.

"DHL's 9,500 job cuts are on top of 5,400 job reductions announced earlier this year. After these layoffs, between 3,000 and 4,000 employees will remain at DHL's U.S. operations, the company said.

The company also said it was shutting down all ground hubs and reducing the number of its U.S. stations to 103 from 412."

 

[flyboyike]

The revenue will be decreased by roughly 92%(!), with an expected daily volume of around 100K shipments, down from around 1.5 million.

Why not just shut down completely?

 

[Propsync]

Why not just shut down completely?

Because DHL Europe has to offer service to the US in order to attract more shippers. If they keep 103 stations in the largest markets of the US, they can say they cover, say 70 percent of the US population (Don't know the real number). They may lose money, I think I saw somewhere in this thread 200 mil a year. But those accounts might go somewhere else if that service isn't offered. I guess I liken it to the grocery store selling toilet paper cheap to get people in the door. I believe the term is loss leader.

 

[SiouxMD11]

So you think ABx will get the contract with help from Ohio?

 

[nitefr8dog]

So you think ABx will get the contract with help from Ohio?

Who are you asking that question to?

 

[sqwkvfr]

Tell them I said to not let the door hit them in arse on the way out of the US. Oh, and tell them I have some extra Federal Express envelopes if they ever desire for anything to actually get where it needs to go. They have management that actually knows how to run a cargo business.

I've gotta echo this sentiment, and I understand that the conversation has gone on further at this point, but a member of my immediate family lost her job at DHL recently. She says that so many customers, business partners, contractors and vendors were so turned off by the arrogance and lack of flexibility shown on DHL's part coupled with the horrible service provided by DHL's ground contractors that she found working their a very frustrating experience.

And, no, she wasn't a courrier...she was a CVA Integration Manager. Fortunately, many of her customers who subsequently turned to USPS for their express shipping needs demanded that USPS hire her.

She started her new federal job early last month.

DHL USA was fugged up from the word "go." Many people tried to tell the home office, but they didn't listen.

 

[flyboyike]

Because DHL Europe has to offer service to the US in order to attract more shippers. If they keep 103 stations in the largest markets of the US, they can say they cover, say 70 percent of the US population (Don't know the real number). They may lose money, I think I saw somewhere in this thread 200 mil a year. But those accounts might go somewhere else if that service isn't offered. I guess I liken it to the grocery store selling toilet paper cheap to get people in the door. I believe the term is loss leader.

I hear you, but to use the entire US market as a loss leader?

 

[Box-Hauler]

Yeah but they were gonna make it up on volume..... (ha ha)

 

[Propsync]

I hear you, but to use the entire US market as a loss leader?

Maybe loss leader was the wrong term, but the thought still carries. If DHL cuts out the US, maybe 3 of the top 20 shippers go to UPS or Fedex. That might be tens of millions of dollars. So instead they provide a population segment of the US market to keep those shippers satisfied and keep them in their own wheelhouse, Europe.

That's partly where the logic failed. Losing 200 million a year on the US and Airborne making a small profit was not going to make it profitable together. Coupled with a media blitz and lack of profitable market share (I bet many accounts were signed for a loss), the end result was this. I feel for the Airborne employees that worked hard to build a respectable product to have it destroyed by someone else. Not the way I would like to bow out.

 

[ABXbooger]

Problem with your logic is you still think DHL is swinging the big stick on the international segment. Fedex and UPS have seen almost all of their growth from the last couple of years come from the International segment. They are gonna eat DHL's lunch within 5 years. Period. No reason to ship DHL anymore when Fedex and UPS do the same thing, only better...

 

[hvydriver]

Problem with your logic is you still think DHL is swinging the big stick on the international segment. Fedex and UPS have seen almost all of their growth from the last couple of years come from the International segment. They are gonna eat DHL's lunch within 5 years. Period. No reason to ship DHL anymore when Fedex and UPS do the same thing, only better...

True Booger...true.....

 

[Golden Falcon]

Don't know about states side, but the one major difference between DHL and the others overseas was the product...it ranged from overnite letters to bulldozers..if it could be disassembled and put on a plane, truck, camel,donkey or barge whatever.. DHL would ship it..ANYWHERE...this is from personal experience having flown for them 12 years...

 

[RiddleEagle18]

Big wigs making huge decisions. What a joke! The idiots that would make that decision are not likely in Kentucky any more than they eat at Holiday Inn.

Told ya! http://wnewsj.com/main.asp?FromHome=1&TypeID=1&ArticleID=175980&SectionID=38&SubSectionID=123

 

[mxer]

Told ya! http://wnewsj.com/main.asp?FromHome=1&TypeID=1&ArticleID=175980&SectionID=38&SubSectionID=123

You Da Man! I stand corrected. I guess DHL big wigs DO eat at Holiday Inn.

 

[AC560]

Remember - 六四屠城

I am guessing the board doesn't get a lot of Chinese readers let alone people who would know the relevance of 64. Seems an odd tag line for this forum.