DHL Out of Business in US

[Ocity]

http://money.cnn.com/2008/11/10/news/companies/dhl/index.htm


I just keeps getting better...

 

[IXLR8]

Just unreal....

 

[767/757]

God speed..........

 

[El Pobre]

I feel sorry for all of those folks being laid off. Been there and it pretty much sucks.

If there is a lesson here, it's that life is unpredictable and people should save money for a rainy day...I know having money in savings helped up whether the 9/11 storm.

Good luck to all those DHL folks

 

[CatfishVT9]

DHL cuts 9,500 U.S. jobs

Delivery firm to end U.S.-only operations, will continue shipments to other countries.

By Aaron Smith, CNNMoney.com staff writer
Last Updated: November 10, 2008: 9:17 AM ET
NEW YORK (CNNMoney.com) -- Global delivery company DHL announced Monday that it was cutting 9,500 jobs as it discontinues air and ground operations within the United States.
DHL said its DHL Express will continue to operate between the United States and other nations. But the company said it was dropping "domestic-only" air and ground services within the United States by Jan. 30 "to minimize future uncertainties."
DHL's 9,500 job cuts are on top of 5,400 job reductions announced earlier this year. After these job losses, 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 its number of stations to 103 from 412.
DHL said it was making the cuts to improve profitability and "to prepare the company for the economic challenges ahead."
The company said this latest action would add $1.9 billion to its restructuring costs, for a total of $3.8 billion over two years, most of it during 2008. The company said the cuts would reduce the annual operating costs of DHL U.S. Express to less than $1 billion, from its current cost of $5.4 billion.
DHL is owned by the German company Deutsche Post World Net.
DHL's U.S. pullback should help competitors FedEx Corp (FDX, Fortune 500) and UPS Inc. (UPS, Fortune 500), said Donald Broughton, analyst for Avondale Partners.
"Obviously, it's good news for FedEx and UPS, because this puts the 3-4% market share that DHL had [for domestic ground and air shipping within the U.S.] up for grabs," said Broughton. "Makes it a jump ball, if you will."
DHL has been hammering out a deal that would extend its airport-to-airport "line haul" shipping services to competitor UPS, said Broughton. DHL spokesman Robert Mintz told CNN that the company is still "in full negotiations with UPS [and] expects to reach an agreement by the end of the year."

Ouch.

 

[~~~^~~~]

This wasn't a layoff was it? Sounds like these guys are shutting down with no intention of starting back up.

DHL competed on price, but they never had a market presence like UPS and FDX. With these types of operations, size matters, if you are going for the high revenue overnight shipping.

The silver lining is if these pilots get hired over at UPS and FedEx. Hopefully Delta will be hiring early 09 as well.

As they say, it is a jump ball, don't waste time, stay in the game. Good luck guys.

 

[jimcav]

Not much consolation there. I have a friend,8 capt making 200,000+, been there since 1992. The guy is married with 3 kids. Happy f--kin holidays!

 

[Flyarcticcat]

Not much consolation there. I have a friend,8 capt making 200,000+, been there since 1992. The guy is married with 3 kids. Happy f--kin holidays!

Sad day. The article did not say how many pilots are being let go or planes being reduced. Are they just adding these planes into the international market?

 

[Lear70]

That is terrible news, both for the workers, their families, and the customers who used them to ship larger packages that UPS and FedEx wouldn't take.

They had a niche business, and it's sad that it wasn't enough to keep them around.

Best of luck to everyone there, hopefully the bottom is coming soon, and everyone will find somewhere to safely land...

Fins, don't get your hopes up. FedEx has driven several freight companies out of business, and they haven't hired a single pilot unless they went through the normal screening process.

I have doubts UPS or FedEx will move to help out those pilots specifically... they don't have to.

 

[Lear70]

Sad day. The article did not say how many pilots are being let go or planes being reduced. Are they just adding these planes into the international market?

No.

The fleet mix includes a lot of planes that can't fly in Europe. Some of them might get absorbed, but a large number of them won't.

 

[Whine Lover]

What about ABX?

 

[~~~^~~~]

Fins, don't get your hopes up. FedEx has driven several freight companies out of business, and they haven't hired a single pilot unless they went through the normal screening process.

I have doubts UPS or FedEx will move to help out those pilots specifically... they don't have to.

True - I hope they land on their feet. The guys out of Seaboard and Flying Tigers did well at FredX and I wonder why FedEx doesn't return to the big cargo business. Tigers used to own that market.

 

[sqwkvfr]

"In other news, DHL announced that it does expect to make a small profit from the sale of it's book, "How NOT to expand your business into the American market."

I'm kidding, of course. The powers that be at Deutsche Post will never understand why they failed....despite their US employees and customers telling them on a daily basis.

 

[erichartmann]

What about ABX?

Who knows. My guess is ABX is done as far as DHL is concerned. DHL, may, I repeat may, continue to operate its international sort in ILN, and may use ABX to staff it. They may also return to CVG. If they have not reached a deal with UPS by Jan 30 they will no doubt continue to use Astar and perhaps a few ABX aircraft to service that business.

If ABX remains in business at all after Jan 30 (or post DHL) it will be reduced to about 10 aircraft operating out of MIA, LAX, and in Japan. Most of the pilots will be furloughed, as will most of the the other employees.

 

[Diesel]

I don't know I was never really suprised. Have you seen the vans that DHL drives? They all look like rape vans minus the circular window in the back like the A-Team had.

And their drivers... a pull over DHL fleece doesn't just make the uniform if you're wearing jeans or whatever.

As I was driving into work last week I saw a driver not even wearing a uniform and that was pretty standard based on my experience.

Fedex and UPS on the other hand are all the same, uniforms, clean trucks, designed for delivering packages and not causing an Amber Alert.

I always thought the germans knew about infrastructure and uniforms. Not sure why they didn't have the same standards over here as they enforced in europe.

 

[gator_hater]

My newspaper makes it closer to my front door than most of my DHL deliveries. One was a DELL and clearly marked as a PC left 2 feet from the gutter in the middle of the driveway. Sucks for the pilots (good luck guys), but their delivery business was a little shady.

 

[KigAir]

I don't know I was never really suprised. Have you seen the vans that DHL drives? They all look like rape vans minus the circular window in the back like the A-Team had.

In my area they don't have their own vans. They rent vehicles from Enterprise. Which I thought was strange.

 

[slaquer5]

My newspaper makes it closer to my front door than most of my DHL deliveries. One was a DELL and clearly marked as a PC left 2 feet from the gutter in the middle of the driveway. Sucks for the pilots (good luck guys), but their delivery business was a little shady.

I have to second that and not just once, many times. When I would call DHL I told them UPS Fed ex would eat there lunch. DHL had a sub par service

 

[Guam360]

I have to second that and not just once, many times. When I would call DHL I told them UPS Fed ex would eat there lunch. DHL had a sub par service

it is a shame, since they were the creators of the overnight package.

 

[9rj9]

There's a UPSstore, Staples, FEDEX kinkos around every corner. They should have hooked up with Starbucks.