DHL to shut down US Domestic Ops Jan 30

Jurassic Jet

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http://biz.yahoo.com/bw/081110/20081110005806.html?.v=1


DHL Express to Focus U.S. Business on International Services

Monday November 10, 7:51 am ET
-- U.S. Domestic-only services end January 30, 2009 -- International shipping to/from U.S. remains intact -- Will reduce U.S. operating costs by over 80%
-- U.S. stays an integral part of DHL's global network

PLANTATION, Fla.--(BUSINESS WIRE)--DHL, the world’s number one international logistics and express service provider, today announced a repositioning of its U.S. Express business. Beginning January 30, 2009, DHL’s U.S. Express business will focus entirely on its international offerings and will discontinue its domestic-only air and ground services. However, the company will retain a strong international presence and capability in the U.S. going forward.

The announcement was made this morning at a press conference held in Bonn, Germany by Deutsche Post World Net, parent company of DHL U.S. Express.
“This is the right move for our U.S. Express operations given the current economic climate and for the long run,” said John Mullen, Global CEO of DHL Express. “Focusing our U.S. Express efforts on what we do better than anyone else – international shipping – serves the best interests of our customers, employees and shareholders around the world.”

In order to meet its financial goals, DHL U.S. Express will close its U.S. ground hubs, and reduce the number of stations from 412 to 103. This will result in an additional reduction of 9,500 U.S. jobs at DHL Express on top of the approximately 5,400 positions already reduced since January. The company will retain 3,000 to 4,000 U.S. Express employees, tailored to the needs of international express customers. These measures will allow DHL’s U.S. Express business to reduce its operating costs from $5.4 billion to under $1 billion, a decrease of over 80%.

“Making a decision that affects the lives of many dedicated employees is never easy, but this is the best path forward for our company,” said Mullen.
The company will maintain its international express service in the U.S. at today’s levels and the U.S. will remain an integral part of DHL’s global network. All international shipments to and from the U.S. will still be delivered, while 99 percent will be picked up.
“DHL remains committed to the U.S. express market,” said Mullen. “A continued U.S. presence is essential to our entire global Express network. Close to half of our top 200 customers are based in the U.S., and U.S. trade lanes make up close to half of our global volume, and half of our global shipments touch the U.S. We are here to stay.”

There will be no impact to services offered by the other DHL/DPWN businesses in the U.S. such as Global Forwarding/Freight, Supply Chain/Customer Information Services (CIS) and DHL Global Mail. With more than 25,000 employees across the country, these divisions will continue to conduct their successful U.S. operations.

About DHL
DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source.
DHL offers expertise in express, air and ocean freight, overland transport, contract logistic solutions as well as international mail services, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide. Some 300,000 employees worldwide are dedicated to providing fast and reliable services that exceed customers' expectations.

Founded in San Francisco in 1969, DHL is a Deutsche Post World Net brand. The group generated revenues of more than 63 billion euros (more than $93 billion) in 2007. For more information on DHL, please visit www.dhl.com.


Contact:
DHL Express USA, PlantationMichele Nadeem/Jonathan Baker, +1-954/888 7114E-mail: usa.pressoffice@dhl.com
 

abxdx

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The AX has fallen!

DHL to drop domestic shipping, close Wilmington hub


Business Courier of Cincinnati


The ax will fall as expected on DHL’s package shipping operation in Wilmington, after the company announced Monday morning that beginning Jan. 30, it will offer international services only in the United States.
DHL’s parent, Deutsche Post World Net, said in a news release that it will close its U.S. ground hubs, reduce its stations to 103 from 412, and eliminate an additional 9,500 jobs.
The toll in Wilmington has been estimated to be about 8,000 jobs, where ABX Air and ASTAR Air Cargo currently provide air cargo transport services for the company, and ABX operates DHL’s privately owned airport, Wilmington Air Park.
“This is the right move for our U.S. Express operations given the current economic climate and for the long run,” said John Mullen, global CEO for DHL Express, in the release.
The company had said in May that it would scale back its U.S. parcel delivery operations and outsource its U.S. air cargo operations to UPS’s hub in Louisville, but the Monday announcement indicates that the two shippers were not able to reach an agreement.
ABX is operated by Wilmington-based Air Transport Services Group (NASDAQ: ATSG). Investor Perella Weinberg Partners Xerion Master Fund Ltd. recently sold a net 1.4 million shares of ATSG, at a substantial loss. The sales reduced its stake from 9 percent to 7 percent.
Shares in ATSG opened Monday at 24 cents.
 

AV8OR

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"I'll be home for Christmas (and Thanksgiving).....you can count on me......"

I just got my letter via DHL courier that Frank Appel enrolled me in the Jelly Of the Month Club! Sweet! They're comin' to instal the pool Jan 30th, 2009!
 

fodc8

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Dasburg speaks....





SPECIAL EMPLOYEE HOTLINE – November 10, 2008
The following is being sent to all employees today from John Dasburg,
Chairman and CEO.
November 10, 2008


Dear Colleague:
DHL has announced that it is shutting down its U.S. domestic network (essentially undoing the Airborne acquisition). Separately, they continue in negotiations with UPS regarding any lift DHL may need in their now scaled down operation. Thus, we continueto have an uncertain future until the DHL/UPS negotiation is either successfully consummated or fails. If it fails there may very well be a continuing role for ASTAR. It is therefore, important, that we continue our high level of professionalism providing the best service possible to DHL.
Sincerely,
John H. Dasburg
 

HD2003

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Dasburg speaks....





SPECIAL EMPLOYEE HOTLINE – November 10, 2008
The following is being sent to all employees today from John Dasburg,
Chairman and CEO.
November 10, 2008


Dear Colleague:
DHL has announced that it is shutting down its U.S. domestic network (essentially undoing the Airborne acquisition). Separately, they continue in negotiations with UPS regarding any lift DHL may need in their now scaled down operation. Thus, we continueto have an uncertain future until the DHL/UPS negotiation is either successfully consummated or fails. If it fails there may very well be a continuing role for ASTAR. It is therefore, important, that we continue our high level of professionalism providing the best service possible to DHL.
Sincerely,
John H. Dasburg
B.S. WE ARE DONE!!!!!
 

On Your Six

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Can someone summarize the main point here? Are we talking about completely shutting down ABX and DHL in the US? Will the entire operation be grounded? Does the 9,500 employees include all of the pilots?

Good luck to all of those people involved!
 

CRACKHEAD

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The company had said in May that it would scale back its U.S. parcel delivery operations and outsource its U.S. air cargo operations to UPS’s hub in Louisville, but the Monday announcement indicates that the two shippers were not able to reach an agreement.
.

I watched the confrence via webcast this morning; and Mullins was asked specifically about Astar's future via an internet question. Mullins said that Astar and ABX will be closed down and talks with UPS will continue until they can come to an agreement by the end of this year.

That's what he said this morning toward the later part of the meeting during the Q&A part.

We're done sooner than I expected. Last one out please turn off the lights.

CH
 

rotor&wing

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I watched the confrence via webcast this morning; and Mullins was asked specifically about Astar's future via an internet question. Mullins said that Astar and ABX will be closed down and talks with UPS will continue until they can come to an agreement by the end of this year.

That's what he said this morning toward the later part of the meeting during the Q&A part.

We're done sooner than I expected. Last one out please turn off the lights.

CH
Don't know which conference you listened to, but Mullens never made that comment. Mullens did state that negotiations are ongoing with UPS and perhaps an agreement will be made by years end.

What was made very clear is the DHL ground and air domestic shipments end Jan 30th, but the International air shipments will continue. This is essentially the old DHL Airways model. If you looked at the map during the presentation it showed all the cities Airways serviced prior to the Airbourne acqusition.

During the DHL Manager's phone conference last night they made it clear they are going to continue the international market and "make sure to protect the international customer base". They also stated that later in the week a more detailed map of the air network after Jan 30th will be made available.
 

abxaviator

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Can someone summarize the main point here? Are we talking about completely shutting down ABX and DHL in the US? Will the entire operation be grounded? Does the 9,500 employees include all of the pilots?

Good luck to all of those people involved!
Yes, complete and total Domestic shutdown from the DHL perspective. No, the 9,500 is just the DHL employees, it does NOT include the 10,000 other employees of ASTAR, ABX, etc that will also be out of work.
 
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rotor&wing

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Yes, complete and total shutdown from the DHL perspective. No, the 9,500 is just the DHL employees, it does NOT include the 10,000 other employees of ASTAR, ABX, etc that will also be out of work.
See my post above. Not a complete shutdown. The international segment remains, much like it was prior to the Airborne acquisition.
 

flyinboxes

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Yes, complete and total Domestic shutdown from the DHL perspective. No, the 9,500 is just the DHL employees, it does NOT include the 10,000 other employees of ASTAR, ABX, etc that will also be out of work.
Correct, 9,500 direct DHL employees, not counting contractors. This will be a total thus far of 14,000 plus(DHL only employees). When including contractors your looking at between 30,000 and 40,000 was the number I saw in a news article.
 

EMBPILOT1

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Talked to a buddy of mine at UPS that said negotiations are under way to have UPS provide a bulk of the international service for DHL. Here is a news article that kind of supports that. I wouldn't be suprised to see the deal called off and see UPS going after all of the DHL business they can including the international stuff.

Plans for UPS (Latest price: UPS) to make up to $1 billion a year flying DHL packages between cities is being scaled back with the German-owned DHL’s announcement that it would eliminate U.S.-only domestic shipping, close all of its DHL Express service centers and cut 9,500 jobs in the United States.

OAS_AD('ArticleFlex_1');UPS had been in talks with DHL since spring, with a contract expected by the end of the year that would result in more jobs for pilots and ground workers in Louisville.

Now, with DHL limiting its U.S. operations to focus entirely on international service, the size and scope of the deal would be much smaller, UPS spokesman Norman Black said in Atlanta.

DHL currently handles 1.2 million U.S. air shipments per day. That volume will drop to 100,000 packages or fewer, DHL Express Global CEO John Mullen, said during a press conference in Bonn, Germany.

UPS could still seek a contract for handling the international service, Black said. The Atlanta-based company, which operates its all-points air hub in Louisville, also stands to win a portion of the U.S. domestic service business DHL will abandon by Jan. 30.

"They still have to hire an airline to move these international packages around the United States. So we have to go back to the negotiating table and see if this new contract would still be attractive to us," Black said.

Black said he could not speculate on whether UPS would have been better off with the previously planned deal, or by winning business from customers who had been using DHL.

“The us market is going to lose a competitor, so it’s up to us to win as many of those customers as we possibly can,” Black said. He said it was too soon to say how much new business the company might gain.
 

174037

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Talked to a buddy of mine at UPS that said negotiations are under way to have UPS provide a bulk of the international service for DHL. Here is a news article that kind of supports that. I wouldn't be suprised to see the deal called off and see UPS going after all of the DHL business they can including the international stuff.

Plans for UPS (Latest price: UPS) to make up to $1 billion a year flying DHL packages between cities is being scaled back with the German-owned DHL’s announcement that it would eliminate U.S.-only domestic shipping, close all of its DHL Express service centers and cut 9,500 jobs in the United States.

OAS_AD('ArticleFlex_1');UPS had been in talks with DHL since spring, with a contract expected by the end of the year that would result in more jobs for pilots and ground workers in Louisville.

Now, with DHL limiting its U.S. operations to focus entirely on international service, the size and scope of the deal would be much smaller, UPS spokesman Norman Black said in Atlanta.

DHL currently handles 1.2 million U.S. air shipments per day. That volume will drop to 100,000 packages or fewer, DHL Express Global CEO John Mullen, said during a press conference in Bonn, Germany.

UPS could still seek a contract for handling the international service, Black said. The Atlanta-based company, which operates its all-points air hub in Louisville, also stands to win a portion of the U.S. domestic service business DHL will abandon by Jan. 30.

"They still have to hire an airline to move these international packages around the United States. So we have to go back to the negotiating table and see if this new contract would still be attractive to us," Black said.

Black said he could not speculate on whether UPS would have been better off with the previously planned deal, or by winning business from customers who had been using DHL.

“The us market is going to lose a competitor, so it’s up to us to win as many of those customers as we possibly can,” Black said. He said it was too soon to say how much new business the company might gain.

Most of the UPSer's that post here or contribute think they are experts, I would not read too much into that statement.
 

EMBPILOT1

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Never said I was an expert, just passing along what I read and what I have heard. I never read too much into what I read on an internet messege board.
 

hvydriver

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The intent there is that UPS would handle the international freight in the CONUS. Just my .02, because here on FI, we're all experts! :)
 

Bob Dylan

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I think it is safe to say that the original UPS/DHL dealings are off according what Black said.

They are probably back at the negotiating table and everyone is bidding for what is left, including ABX, FEDEX and UPS.

DHL said they were gonna pull out if they couldn't reach an agreement with UPS. I guess they were not bluffing.
 

satpak77

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what is the answer, I was foggy....are the DHL pilots out of work now or what
 

abxaviator

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The are NO DHL pilots in the US, only ABX and ASTAR and they will likely all be out of work on or about 1/30/09.
 

nitefr8dog

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I think it is safe to say that the original UPS/DHL dealings are off according what Black said.

They are probably back at the negotiating table and everyone is bidding for what is left, including ABX, FEDEX and UPS.

DHL said they were gonna pull out if they couldn't reach an agreement with UPS. I guess they were not bluffing.
Last week you said the deal was going to be alot bigger I guess your crystal ball has a crack in it huh?
 
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Bob Dylan

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Last week you said the deal was going to be alot bigger I guess your crystal ball has a crack in it huh?
Nice way to parse my words.

I said last week that the deal was going to be bigger in scope, meaning, I speculated that there was more to the deal than just domestic airlift.

Maybe I was wrong, maybe not. We shall see.

Either way, I feel bad for anyone losing a job.
 
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