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shooter

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UPS to deliver DHL packages?

Gee, none of us would have seen UPS deliveries coming. :rolleyes:
Sure DHL; have UPS sort it, fly it and deliver it. It's not a merger. I am sure you will still be "competing fiercely" with them. :puke:

Parcel shipping: FT report indicates DHL may need to delay US restructuring plan by up to eight weeks



Jeff Berman, Group News Editor -- Logistics Management, 9/12/2008

BONN, Germany—A report published by the Financial Times Deutschland indicated that Deutsche Post World Net (DPWN), the parent company of express and logistics services provider DHL, will have to delay its restructuring schedule for DHL Express USA by approximately eight weeks.

DPWN announced its restructuring plan on May 28. It is comprised of:
  • <LI style="MARGIN: 0in 0in 0pt">a ten-year, $10 billion contract with UPS for airlift capacity to reduce its ground infrastructure operations costs (this deal is not yet completed, and the House Committee on the Judiciary held a hearing on it this week focused on competition in the package industry; the House Committee on Transportation and Infrastructure is holding a separate hearing on this matter on Tuesday, September 16);
    <LI style="MARGIN: 0in 0in 0pt">rationalizing infrastructure by 34 percent by closing and consolidating US stations in low density and remote areas, low density areas in multiple station locations, and nearby stations in multiple station locations;
    <LI style="MARGIN: 0in 0in 0pt">reducing pickup and linehaul delivery routes by 17 and 18 percent, respectively; and
  • expanding DHL’s partnership with the United States Postal Service, which will enable DHL to continue delivering to more rural parts of the US, among others.
The FT report indicated that DHL’s US operations, which have long been facing an uphill battle for market share competing against industry titans UPS and FedEx, “have been running worse than expected over the last few months” which is delaying negotiations with UPS. The UPS-DHL contract was originally expected to be finalized by August, industry analysts are suggesting it may take at least another two months, with UPS to commence handling DHL’s airlift for express US domestic and international shipments from airport-to-airport within North America.


One of the main reasons for the contract being delayed, according to the FT, was that DPWN CEO Frank Appel now wants to “reduce DHL’s delivery capacity [in the US] by 50 percent instead of a third as initially intended. As a result UPS might cover part of DHL’s ground deliveries as well.”

An industry source told LM that there have been rumors that a major announcement will be coming from DPWN next week that will announce downsizings at DHL Express USA. The source added that although DHL has outsourced deliveries to the USPS through DHL@home since 1999—roughly a $300 million annually operation geared for business-to-business residence shippers in which shipments are picked up by DHL and delivered directly to consignees by the local post office—“it may have figured out it can get better service and a lower price from UPS Ground than the USPS.


“DHL needs to pick up the pace at which it is right-sizing US operations,” said the source. “They have to rationalize their expenses with their income far more rapidly than they have been doing it [in his Judiciary Committee testimony this week, DHL Express CEO John Mullen said DHL is suffering operating losses of about $5 million per day], and they might have figured out that it might be better to outsource deliveries to UPS rather than the USPS because of better cost and service.”


“Both parties are committed to reaching an agreement,” a DHL spokesperson told LM. “Discussions between DHL and UPS are ongoing and details about the proposed arrangements and the timing of a final agreement are still subject to negotiation and confidentiality requirements. We regret that we are not in a position to provide more details at this time.”

http://www.logisticsmgmt.com/article/CA6595731.html?industryid=48465
 
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CRACKHEAD

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One of the main reasons for the contract being delayed, according to the FT, was that DPWN CEO Frank Appel now wants to “reduce DHL’s delivery capacity [in the US] by 50 percent instead of a third as initially intended. As a result UPS might cover part of DHL’s ground deliveries as well.”



http://www.logisticsmgmt.com/article/CA6595731.html?industryid=48465

So it goes from bad to worse. Just when I thought there was hope. Frank Appel needs to go!
 

shooter

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All I can say CRACKHEAD is that I believe DHL is messing up the operations ON PURPOSE. I have seen some stuff the past couple weeks that makes no sense AT ALL! They seem to be going out of their way to increase losses for some reason. Maybe to try and justify their reasons to dump ABX, Astar and Wilmington.
 

FreightBumper

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All I can say CRACKHEAD is that I believe DHL is messing up the operations ON PURPOSE. I have seen some stuff the past couple weeks that makes no sense AT ALL! They seem to be going out of their way to increase losses for some reason. Maybe to try and justify their reasons to dump ABX, Astar and Wilmington.
Then let's help them.
 

shooter

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Then let's help them.
I honestly don't think we need to. They have been doing a bang up job of killing their own market share with excellent performance from the airlines. I have serious doubts this operation will run far into 2009. At this point, I can't even see it going past JAN.
 

TWA

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Do they actually have a signed contract with UPS yet?
 

shooter

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Do they actually have a signed contract with UPS yet?
The line from the article: "An industry source told LM that there have been rumors that a major announcement will be coming from DPWN next week that will announce downsizings at DHL Express USA."

Before the article had been published, there were talks that this announcement was the contract signing. Just rumors and speculation but they were coming from DHL. Next week will be busy. Tuesday has a Congressional hearing and a picketing at the German Embassy in DC and this "announcement" sometime in the week.

What concerns me the most is that there is no plan to help the workers (other than the DHL offered severance and retention that will not produce jobs and just delay the inevitable foreclosures etc. etc.). The politicians keep talking about helping the area by making sure the workers know they are not turning their backs on them. Yet at the same time they say that the trade adjustment assistance will not apply to the workers of Wilmington since the jobs did not go overseas. And this small community of around 12,000 will see their back being broken as the jobs losses are in NO WAY able to be absorbed by the community jobs available. You want to see a disaster, come to Southwest OH.

Once the jobs are gone, others will follow. Hospital and schools going broke. Emergency services belly up. More jobs being lost left and right AFTER the blast. An after-shock that can't even be accurately measured. Disgraceful what DHL has done.
 
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Publishers

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What do you think about Lehman brothers or HP or thre other companies that are going through tremendous shock right now. What exactly do they owe in your opinion.
DHL is dead in this country, there will be no happy ending. Do you think that any company fails on purpose?
 

shooter

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What do you think about Lehman brothers or HP or thre other companies that are going through tremendous shock right now. What exactly do they owe in your opinion.
DHL is dead in this country, there will be no happy ending. Do you think that any company fails on purpose?
Lehman Bros and Merrill Lynch failed because of their short sighted greed. Go ask their employees what they think, not me.

When it comes to the aid, you do not seem to understand the impact these DHL fools have created for the communities of SW Ohio. It will have an impact like that of a natural disaster. There will be nothing left. In order to help the SW Ohio area recover from certain disaster, assistance will be needed. Rather than needing to rebuild the library, schools and hospitals the area needs to invest in jobs in order to support that infrastructure. Some of that will be to try and attract businesses to the area and retraining. Wilmington is not a thriving metropolis like NY City where there are thousands of employers.
 

EMBPILOT1

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Lehman Bros and Merrill Lynch failed because of their short sighted greed. Go ask their employees what they think, not me.

.
I agree with some of the greed part, but this whole mess can be traced back to the Clinton Admn. Oh yes, the media won't tell you about the law he signed forcing companies like the ones going under to offer a certain % of loans to those who should have never been offered one. Are we ever going to learn that the Government should stay as far away from the private sector as they can. They seem to always ******************** things up sooner or later.
 

shooter

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I agree with some of the greed part, but this whole mess can be traced back to the Clinton Admn. Oh yes, the media won't tell you about the law he signed forcing companies like the ones going under to offer a certain % of loans to those who should have never been offered one. Are we ever going to learn that the Government should stay as far away from the private sector as they can. They seem to always ******************** things up sooner or later.
I don't know the history of the Clinton admin. law you speak of. But the core of your post is spot on. Had they not given these high risk loans and "creative" mortgages the banking industry would not be so messed up. The insult to this is the execs. have been taking their HUGE bonuses.

But part of the blame can be laid upon the people taking these things out. If you are making 30k a year ou CAN'T afford a 300k home. Come on people, get a brain. :confused:
 
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Bob Dylan

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I saw that Ohio Gov. Strickland didn't even bother to go to the UPS/DHL hearing in Washington today.

Rumors yesterday that DHL will soon pull out of USA completely.

I think the Gov. decided it's a lost cause.
 

shooter

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I saw that Ohio Gov. Strickland didn't even bother to go to the UPS/DHL hearing in Washington today.

Rumors yesterday that DHL will soon pull out of USA completely.

I think the Gov. decided it's a lost cause.
You do not live around here, obviously. Did you happen to see the wind storm the area just had? He is touring the damage.
 

Bob Dylan

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You do not live around here, obviously. Did you happen to see the wind storm the area just had? He is touring the damage.

My mother-in-law lives in Columbus. She said it isn't as bad as the news is making it out to be.

My point is that the UPS/DHL hearings in Washington are not even your Gov's top priority today.
 

shooter

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My mother-in-law lives in Columbus. She said it isn't as bad as the news is making it out to be.

My point is that the UPS/DHL hearings in Washington are not even your Gov's top priority today.
Well then she needs to come down to SW Ohio where it IS bad. Duke energy has 800,000 customers and I think around 700,000 were without power. Many will not have it restored until this weekend, if lucky. I think there are about 5 homes destroyed in a 1 mile radius of my house. But I do live in a heavily wooded area. Cincinnati had their best working when they avoided a Chicago disaster. One building caught on fire and the wind blew the embers to catch fire to 5 other buildings roof tops. And these buildings are a city block long.
 
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TWA

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I saw that Ohio Gov. Strickland didn't even bother to go to the UPS/DHL hearing in Washington today.

Rumors yesterday that DHL will soon pull out of USA completely.

I think the Gov. decided it's a lost cause.
On Sunday Ohio had the equivalence of a category 1 hurricane (without the storm surge) rip through the state. Even though there are lots of people in Wilmington effected by DHL, more than half the state not having power is probably a more pressing issue right now.
 

Bob Dylan

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Well then why doesn't he attend the hearing in Washington today and tour the wind damaged areas tomorrow - if the cleanup is going to take as long as you say?
 

shooter

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Well then why doesn't he attend the hearing in Washington today and tour the wind damaged areas tomorrow - if the cleanup is going to take as long as you say?
The Lt. Governor is there. The message is being delivered. Don't fret.

Here ya go Bob, you can watch live: http://transportation.house.gov/
 

TWA

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Well then why doesn't he attend the hearing in Washington today and tour the wind damaged areas tomorrow - if the cleanup is going to take as long as you say?
I really don't think you understand the scale of this storm. 84 of the 88 counties in Ohio sustained major damage, and the Ohio has declared a state of emergency. Come on down to Dayton and help me get the tree off my brothers car, then we'll talk.
 

Bob Dylan

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There's a neat invention out there called an airplane. I bet he could have toured the damage all morning, jumped in this thing called an airplane and zipped on down to DC in time for the hearing this afternoon. Then he could have zipped on home to Ohio to tour some more damaged areas tomorrow.

The flight is about an hour. I've done it. I guess the hearing isn't much of a priority though. Oh well.
 
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