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DHL to shut down US Domestic Ops Jan 30

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Jurassic Jet

Freight Trash
Joined
Mar 10, 2005
Posts
227
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: [email protected]
 
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.
 
"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!
 
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
 
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!!!!!
 
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!
 
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
 
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.
 
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.
 
Last edited:
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.
 

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