Thinking out loud on DHL and asking a few QQ's

[MACHTRANSDUCER]

link

I didn't get it from exdhl.com. In fact, if you'll compare the time it was posted there (6:00 P.M.) to the time I posted it here (17:02), it appears quite possible that that individual lifted it from this site.

My source has access to standard industry "hotsheets" and some inside information, but no interest in either of these boards or to the operational side of the business.

Actually, it shows ABXspeedyboys posted that at 5:00 pm on ex-dhl, and you posted it at 17:02 here. (17-12=5pm) 2 minutes after it was posted there.[/quote]

actually google search news for dhl and thats where that came from, heres the link to logistics management news:

http://www.logisticsmgmt.com/article/CA6609154.html?industryid=48465

 

[MACHTRANSDUCER]

I just got this from a source I generally consider relaible. Even if every word of it is true, DHL/Astar is still beset with problems as the transition will surely cost them even more customers. In short, it raises more questions than it answers. I'm passing it along for entertainment value only;

"After DHL let go 90% of its sales force last week, it has informed its National Accounts they should seek other domestic shipping options.

*DHL plans on letting the remainder of their ground network (2day/GDS etc) die with the expected loss of revenue with their recent announcement to their National Accounts.

*DHL is planning on shutting down the night sort at Wilmington on Nov 29, 2008. They have informed commerce park (the business park located next to the Wilmington hub) clients of this.

The DHL/UPS deal is reportedly dead. The two could not come to terms on a number of issues. DHL is supposedly using it as a smokescreen to insure their existing customers are serviced and have time to react to the recent announcement to seek other shipping options.

*DHL is making arrangements to move their overnight (P1) and international shipments to the old DHL Hub at Cincinnati (CVG). Reportedly sorters are being hired and electricians are on site at the to begin operations after the November 29 shutdown of the Wilmington night sort.

*Astar is reportedly providing the necessary lift for the DHL/CVG hub operation.

*There is no intention on DHL's part to 1) contract with UPS 2) maintain overnight sort operations into 2009 as claimed, or the day sort much into 2009. DHL's goal is to eliminate the ground service (P2,etc.)as quickly as possible in order to eliminate the expense of maintaining their regional hub network (ie, Allentown/ABH).

*Wilmington sort volume has dropped significantly since the DHL/UPS announcement was made in May.

*Unishippers is supposedly to begin selling UPS (they are a reseller of DHL service)

*DHL’s reported strategy is to keep quiet until the last possible moment so as to not inflict service issues upon their existing accounts by upsetting the Wilmington work force further."

and the "source"... logisitics management on google news... heres the link....

http://www.logisticsmgmt.com/article/CA6609154.html?industryid=48465

 

[MACHTRANSDUCER]

Actually, it shows ABXspeedyboys posted that at 5:00 pm on ex-dhl, and you posted it at 17:02 here. (17-12=5pm) 2 minutes after it was posted there.

actually google search news for dhl and thats where that came from, heres the link to logistics management news:

http://www.logisticsmgmt.com/article/CA6609154.html?industryid=48465 [/quote]

disregard, apologies hvy driver..... too much red bull review POST ABOVE

 

[hvydriver]

actually google search news for dhl and thats where that came from, heres the link to logistics management news:

http://www.logisticsmgmt.com/article/CA6609154.html?industryid=48465

disregard, apologies hvy driver..... too much red bull review POST ABOVE[/quote]


No worries Mach. Actually I think he cut/pasted off the ex-dhl site, simply because that's where the Astar stuff was put into the "press release". The version he's posted is very different than the LM article.

 

[Whistlin' Dan]

I don't know how you're connecting all this to the article in Logistics Management, as they're not even similar. Nor do I know the origin of the document, as I received it in the form of an email. I didn't get it from ex-dhl.com, and I'm fairly certain the person who sent it to me didn't get it there either.

It's entirely possible it came from an industry hotsheet, in which case it was available to hundreds of people in the express mail business simultaneously.

Whatever the source, I don't think it's accurate in it's prediction for how DHL will service the small amount of business they still have in North America.

 

[EuroWheenie]

Apparently we're due some kind of announcement on or around the 11th of November, supposedly relating to the ongoing discussions with UPS. It could be nothing but a "negotiations are ongoing" piece of bla bla, but the rumour mill is telling me it'll be something more substantial.

I haven't really heard anything new lately, mainly because I've been in the US for the last 10 days, and thus cut-off from the usual sources of gossip.

PS
Sneaked a not fully authorised view of the Boeing plant at Everett last week, where a semi-naked 777 Freighter was being assembled. Nice piece of kit; looking forward to getting the first of 8 we (that'll be AeroLogic btw) have on order come May.

 

[Bob Dylan]

UPS/DHL deal will be announced in the next few days.

Also if you notice all the points from that list above have bullet points with an asterix. All but the UPS point, which was obviously added just for flame baiting purposes.

 

[rotor&wing]

UPS/DHL deal will be announced in the next few days.

Yep. Will be announced it's dead and over with.

Sorry Bob.

(btw, your music still sucks)

 

[Whistlin' Dan]

UPS/DHL deal will be announced in the next few days.

Also if you notice all the points from that list above have bullet points with an asterix. All but the UPS point, which was obviously added just for flame baiting purposes.

I wouldn't read too much into the "lack of asterisk." Half of what was in it has either happened or is happening, the other half wild speculation and hearsay. Kind of like this board.

The only interest the person who sent it to me has in either DHL or Astar is how much of DHL's business they can pick up out of all this. So far, it's been a LOT. They estimate DHL's business is already down by almost 30%, with UPS getting the lion's share of it. What it will be after DHL imposes their own service cuts no one knows, but it's unlikely to support a 40-plane fleet at CVG or anyplace else. "Maybe 5 or 6" was their guess. "Too small to keep in-house, but about the right size for an ACMI operation. The rest could go as belly-freight. There's a lot of it available out of CVG"

If this UPS/DHL deal dies, it won't be because of anti-trust issues or any concern for the employees or the community they serve. It will die because there just isn't enough DHL freight left for UPS to screw around with it.

 

[bvt1151]

"Too small to keep in-house, but about the right size for an ACMI operation. The rest could go as belly-freight. There's a lot of it available out of CVG"

There's very little belly lift out of CVG, due to the almost complete lack of wide-bodies. Sure, they could use lift to Hawaii and Europe, but they already do that now. The real problem is that DHL flies at night and Delta flies during the day. There's no way to utilize commercial passenger lift for a domestic operation, and there's not enough lift for an international operation.

 

[TWA]

I can see it now, Comair converting the RJs to combies.

 

[nitefr8dog]

There's very little belly lift out of CVG, due to the almost complete lack of wide-bodies. Sure, they could use lift to Hawaii and Europe, but they already do that now. The real problem is that DHL flies at night and Delta flies during the day. There's no way to utilize commercial passenger lift for a domestic operation, and there's not enough lift for an international operation.

Does not matter if Delta flies days and DHL flies at night. DHL does not care when or what day the freight gets there, they are a freight forwarder not express freight. Thats why they totally sucked and ruined the Airborne Express bussiness.

 

[Publishers]

The cost of overnight packages is extremely high due to the time guarantee. If you can that, then the cost changes dramatically. DHL has kissed that off.
WE moved 500k lbs at Tigers of two day product and it never saw an aircraft. We flew 800k to 1.0 and had a fleet of aircraft, trucks, delivery people, etc.. Of the 1.0, maybe 50,000 was overnight by 10am. Allof our efforts and stress were related to that.

 

[bvt1151]

Does not matter if Delta flies days and DHL flies at night. DHL does not care when or what day the freight gets there, they are a freight forwarder not express freight. Thats why they totally sucked and ruined the Airborne Express bussiness.

It very much does matter, because day flying adds one day to the delivery. If you make Monday pickups, they won't be on an airplane until Tuesday, which means they won't be available for delivery until Wednesday. Won't work, not to mention the lack of containerized bellies.

I'm not sure if you're venting about DHL's service, or just sincerely don't know a thing about their business model, but they are an express parcel carrier. Express product drives their network. Who flies that network is a moot point as long as DHL controls the schedule, which they do.

 

[FreightBumper]

It very much does matter, because day flying adds one day to the delivery. If you make Monday pickups, they won't be on an airplane until Tuesday, which means they won't be available for delivery until Wednesday. Won't work, not to mention the lack of containerized bellies.

I'm not sure if you're venting about DHL's service, or just sincerely don't know a thing about their business model, but they are an express parcel carrier. Express product drives their network. Who flies that network is a moot point as long as DHL controls the schedule, which they do.

DHL can barely control their bowels let alone a business model. They are not, never been or will be an express carrier. Their motto is "we will get it there sometime." I have watched them kill the express carrier. It was called ABX Air. International freight forwarding is not time critical for 99% of the product. Too expensive.

 

[flyinboxes]

Joe Hete killed ABX Air(well he's not done yet). He turned down the 7.75 offer and now we all pay. ABX Air was to merge with Astar..........not be decapitated. Thanks Joe.

 

[shooter]

DHL can barely control their bowels let alone a business model. They are not, never been or will be an express carrier. Their motto is "we will get it there sometime." I have watched them kill the express carrier. It was called ABX Air. International freight forwarding is not time critical for 99% of the product. Too expensive.

:laugh: Funny stuff, and true.

Until I find new employment I am reminded everyday I come into work how DHL killed the #3 carrier in the USA by committing suicide because they just don't know what they are doing. It is making me barely control my bowels. :erm:

 

[abxdx]

Another one bites the dust!!

http://www.trafficworld.com/newssection/airparcel.asp?id=48479


:uzi: DHL

 

[erichartmann]

Joe Hete killed ABX Air(well he's not done yet). He turned down the 7.75 offer and now we all pay. ABX Air was to merge with Astar..........not be decapitated. Thanks Joe.

Wake up and smell the roses FB. With run up in fuel prices, the economy taking a dive and the inept management of DHL we would be in the same place even if Hete had accepted the $7.75. Your 727's burn way to much fuel for what they can carry, to say nothing of the 3 man crew. The only thing that might be different would be the type of aircraft DHL would be using once they go back to CVG and who would be flying them.

 

[fob727]

Wake up and smell the roses FB. With run up in fuel prices, the economy taking a dive and the inept management of DHL we would be in the same place even if Hete had accepted the $7.75. Your 727's burn way to much fuel for what they can carry, to say nothing of the 3 man crew. The only thing that might be different would be the type of aircraft DHL would be using once they go back to CVG and who would be flying them.

Well, here we go again! Domestic vs. supplemental, yeah, yeah...2 vs. 3 man crews, Cat II, blah, blah, blah.