DHL to shut down US Domestic Ops Jan 30

[flyinboxes]

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]

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]

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]

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]

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]

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]

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

 

[abxaviator]

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]

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?

 

[Bob Dylan]

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.