Originally Posted by
flythemed
Who knows the inner workings of the proposed DHL-UPS agreement? It is interesting that if it is 'simply a vendor relationship' that poses absolutely no anti-trust or anti-competitive questions or concerns, then why has it taken so long to sign when the projectied contract date was to be August 31st 2008? Why wouldn't both DHL and UPS willingly agree to let the proposed contract be reviewed by the FTC and the DOJ to ensure that everything is in compliance with the law, before implementaion of that contract?
Probably because since the deal was announced and now, the US and World economy has totally nose-dived, and DHL no longer wants a domestic US network at the cost of $1 billion/yr, and therefore has begun to pull out, negating a need for that $1 billion/yr with UPS
Welcome To Air Cargo World -- Breaking News
DHL Steps Up Cutbacks
DHL Express is cutting back its U.S. operations more deeply than earlier announced as it copes with a troubled American economy.
DHL also says it is speeding up the cutbacks it had been planning, putting its cost-saving efforts on a more urgent track and prompting suggestions from some industry observers that even greater cuts in DHL's presence in the United States are on the way.
Jon Langenfeld, an investment analyst with Baird Equity Research, said his firm's industry contacts "suggest that deteriorating conditions could force DHL to more drastically eliminate its U.S. domestric parcel operations."
DHL late Friday issued a statement saying the company has "identified additional rationalization measures" to support its overall restructuring and that it has "hastened the pace of many of our cost savings initiatives."
The company says the efforts are aimed at "sustaining DHL's business in the U.S. market and stem our ongoing losses"
A key part of the restructuring effort has not gone forward, however. DHL said in May in announcing the restructuring that it would outsource its flight services in the United States to UPS and hoped to have a 10-year contract for the business completed by the end of August. DHL officials did not respond to questions about the contract talk; UPS officials said the talks were still going on.
DHL recently trimmed some of its service offerings, dropping the DHL@home hybrid postal/private delivery option that had been launched by Airborne Express several years ago.