Washington rejects Ohio bid to halt DHL-UPS deal

shooter

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Washington rejects Ohio bid to halt DHL-UPS deal


By John Nolan
Staff Writer

Wednesday, August 27, 2008

The U.S. Department of Transportation has rejected Ohio's request that the department block DHL's plan to hire United Parcel Service to handle DHL's domestic air cargo sorting and flying.
Transportation Secretary Mary E. Peters rejected Ohio's contention that a DHL-UPS agreement would be unfair competition in the U.S. air shipping industry, or would amount to an unfair or deceptive practice under federal law.
DHL, owned by Germany's Deutsche Post World Net, said it wants to hire UPS as part of a restructuring DHL hopes will reduce its $1 billion annual losses in the U.S. market, where it trails rivals UPS and Federal Express.
Ohio officials have said that DHL's plan to move its air cargo operations from DHL's Wilmington freight hub to UPS' Louisville, Ky., hub will wipe out at least 8,200 jobs at Wilmington. DHL decided in 2004 to consolidate its air freight operations at Wilmington, with the help of tax breaks and grants from the state.
DHL currently employs two airlines, ABX Air Inc. and ASTAR Air Cargo, to fly its packages nationwide from Wilmington. ABX also runs the hub for DHL and sorts the cargo.
Ohio Gov. Ted Strickland and Lt. Gov. Lee Fisher wrote to Peters in July, asking that the U.S. Department of Transportation investigate the proposed DHL-UPS deal and move to stop it.
"While I understand your concerns over Deutsche Post AG's proposed restructuring of DHL, it is our view that this restructuring would not constitute an unfair or deceptive practice or an unfair method of competition," Peters wrote in her Aug. 15 letter to Strickland and Fisher. "The department's regulations do not impose restrictions on a foreign air freight forwarder's choice of U.S. carrier to transport its cargo."
State officials were disappointed with Peters' response, said Amanda Wurst, a spokeswoman for the governor.
"We were obviously hoping that the U.S. Department of Transportation could provide us with a way to keep those jobs in Ohio," Wurst said Tuesday, Aug. 26.
Peters suggested that Ohio take its concerns to the U.S. Department of Justice, which has authority to determine whether corporate actions would violate antitrust laws by reducing market competition. Ohio and its congressional delegation have already urged the Justice Department to commence an antitrust investigation. Government officials have said they cannot do so, however, until DHL and UPS have an agreement in place.
DHL and UPS have said they see no need for government approval of what the companies say would be a customer-vendor agreement. DHL and UPS said they would continue to compete for customers.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.


http://www.daytondailynews.com/b/content/oh/story/business/2008/08/27/ddn082708dhlweb.html
 

Fly Astar Jets

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Yep.
Washington rejects Ohio bid to halt DHL-UPS deal


By John Nolan
Staff Writer

Wednesday, August 27, 2008

...Peters ( Transportation Secretary Mary E. Peters )suggested that Ohio take its concerns to the U.S. Department of Justice, which has authority to determine whether corporate actions would violate antitrust laws by reducing market competition. Ohio and its congressional delegation have already urged the Justice Department to commence an antitrust investigation. Government officials have said they cannot do so, however, until DHL and UPS have an agreement in place....

Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.


http://www.daytondailynews.com/b/content/oh/story/business/2008/08/27/ddn082708dhlweb.html

Well, we all knew that this would be the DOT's position. But at least Mary had a pair and openly suggested that this case should be reviewed by the DOJ as an anti-trust issue.

FAJ
 

MJH767

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Sounds to me like DOT just passed the political "hot potato" on to DOJ. Expect more of that.
 

shooter

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Well, we all knew that this would be the DOT's position. But at least Mary had a pair and openly suggested that this case should be reviewed by the DOJ as an anti-trust issue.

FAJ
I agree. I was thinking they would say something about the DOT regulation to disclose that UPS is the one flying the DHL packages since they require air carriers to disclose that for tickets. If all DHL customers are told that all DHL is doing is picking it up and dropping it off, that UPS is sorting and flying their express package, how many would put 2 and 2 together and say why don't they just use UPS. Oh well, I guess UPS salesmen will just have to work for it.
 

Big Beer Belly

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Washington rejects Ohio bid to halt DHL-UPS deal
Hmmm.... :rolleyes:


>>
Companies Spend Millions at Convention (Courier Journal, Aug. 27)

Taking advantage of an opportunity to rub elbows with those who make the decisions in Washington, UPS has become the official package delivery service for the Democratic and Republican National Conventions.
The nonpartisan Center for Responsive Politics estimates that the contributions - most from corporations but also some from labor unions - total $112 million this year to cover about 80 percent of the cost of the two conventions. While corporate contributions to political parties and candidates are generally prohibited, a quirk in campaign finance law allows such contributions to convention organizing committees. The corporate assistance comes in several forms. Some companies pay to be official convention sponsors. Others provide services or products or hold smaller events, such as luncheons. UPS is the official package delivery service of the Democratic National Convention and will have the same designation at the GOP gathering.
"This is business development, pure and simple, for us," said Norman Black, spokesman for UPS in Atlanta. "It's exposing our service to a bunch of people and hopefully generating a good piece of business at a time when overall the U.S. economy has been pretty slow."
UPS, which has 358,000 employees nationwide, contributed to both conventions, but Black declined to say how much on grounds that such information is "proprietary."
Responding to critics of corporate influence in politics, Black said: "We are never going to apologize in the least for exercising our right to be heard.”
(Link Not Avail.)
<<
 

shooter

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Hmmm.... :rolleyes:


>>
Companies Spend Millions at Convention (Courier Journal, Aug. 27)

Taking advantage of an opportunity to rub elbows with those who make the decisions in Washington, UPS has become the official package delivery service for the Democratic and Republican National Conventions.
The nonpartisan Center for Responsive Politics estimates that the contributions - most from corporations but also some from labor unions - total $112 million this year to cover about 80 percent of the cost of the two conventions. While corporate contributions to political parties and candidates are generally prohibited, a quirk in campaign finance law allows such contributions to convention organizing committees. The corporate assistance comes in several forms. Some companies pay to be official convention sponsors. Others provide services or products or hold smaller events, such as luncheons. UPS is the official package delivery service of the Democratic National Convention and will have the same designation at the GOP gathering.
"This is business development, pure and simple, for us," said Norman Black, spokesman for UPS in Atlanta. "It's exposing our service to a bunch of people and hopefully generating a good piece of business at a time when overall the U.S. economy has been pretty slow."
UPS, which has 358,000 employees nationwide, contributed to both conventions, but Black declined to say how much on grounds that such information is "proprietary."
Responding to critics of corporate influence in politics, Black said: "We are never going to apologize in the least for exercising our right to be heard.”
(Link Not Avail.)
<<
And if this deal is allowed to go through and DHL is picked as the official package carrier, UPS would still be the official package carrier. :rolleyes:

Responding to critics of corporate influence in politics, Black said: "We are never going to apologize in the least for exercising our right to be heard.”
It is for the people by the people, NOT for corporate scum by corporate scum. But you keep supporting the decline of our government there corporate slim.
 
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fob727

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BBB, It's "panties in a bunch"...A$$hole
 

Big Beer Belly

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Big Beer Belly

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Shooter... I just REPORT the facts amigo... I don't make the rules. I'm sure all of our labor-loving liberal lawmaker friends must have a VERY good reason for exempting this special "convention supporting" donation.

Vote Republican! Rush is right! McCain '09!

BBB :D
 

shooter

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Shooter... I just REPORT the facts amigo... I don't make the rules. I'm sure all of our labor-loving liberal lawmaker friends must have a VERY good reason for exempting this special "convention supporting" donation.

Vote Republican! Rush is right! McCain '09!

BBB :D
I understand that and respect the alternate view. But that Black is corporate slim and a HUGE P#!%K! I can't wait for the day karma comes back to him. I'm a Ron Paul guy and support his view to give the country back to the people. D!*^head Black keeps selling out.

Not to change the subject or hijack this thread, but does anyone reading this know if Dell still has problems with laptop batteries? This thing darn thing nearly burnt the skin off my leg!
 
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Big Beer Belly

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But that Black is corporate slim and a HUGE P#!%K! I can't wait for the day karma comes back to him. I'm a Ron Paul guy and support his view to give the country back to the people. D!*^head Black keeps selling out.
Hey! We FINALLY agree on two somethings! Black and Ron Paul! There's hope for you yet Shooter. Good luck on that exotic dancer gig! :eek:

BBB
 

shooter

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Good luck on that exotic dancer gig! :eek:

BBB
:laugh: I don't know if that would be funny or plain scary to watch. But hey, I'm good at rolling nickels.
 

PreContact

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If all DHL customers are told that all DHL is doing is picking it up and dropping it off, that UPS is sorting and flying their express package, how many would put 2 and 2 together and say why don't they just use UPS. Oh well, I guess UPS salesmen will just have to work for it.
Just like the Post Office tells you that FedEx will be flying your express mail.
 

shooter

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Just like the Post Office tells you that FedEx will be flying your express mail.
The USPS does not exclusively use FedEx, now do they.
 
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