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The reason for the separate ramp may be that UPS wants DHL to maintain a branded presence in the US in order to avoid problems with scope when the joint product moves overseas.I don't understand this. Will UPS have dedicated DHL flights that are 100% DHL freight? Why would they do something like this when they will just fly freight on UPS aircraft and sort in UPS hubs? Does UPS not have a ramp in Flint maybe?
The reason for the separate ramp may be that UPS wants DHL to maintain a branded presence in the US in order to avoid problems with scope when the joint product moves overseas.
Fisher said DHL is willing to explore options, but made it clear that it intends to move forward with the UPS deal.
Maybe not the ramp, per se, but the product. Maintaining a unique identity to the product, aside from the markings on the boxes and waybills, is probably necessary to keep UPS' unions from crying "Foul!" The immediate loss of jobs for Astar/ABX here will be matched by slow/no growth for IPA guys overseas.A DHL "branded" ramp?
All they had to do was wait DHL out, and at some point they (or FedEX) would have had the business anyway.
UPS is not some magnanimous company. They see this as a win-win deal for them.
Analysts suggest that the decision of DHL to pull back from the U.S. express market may help FedEx grab a bigger share of the business.
The experts already agree with you. But now its on a fast track.
http://www.forbes.com/feeds/ap/2008/06/17/ap5125928.html