Anyone else heard the rumor that Fedex has gotten the DHL contract in the US. Maybe we don't need no Paris Hub maybe something in Germany???
Propwash

 

That would fix our overmanning problems at FDX but screw over a lot of our brothers at other carriers. It would yet be another reason for cancelling CDG.

 

i'm told it's a bad rumor..but what do i know?...like my new avatar?

 

Kinda like O showing up last week at Ground school and saying CDG is ON!!!!
I'm sure that is what the last word he heard, like a shroom!!!!
Propwash

 

Nice avatar, at least you won't have to fly with her.

 

Just don't bring it with you to fly!

 

I didnt know DHL had a US contract up for bid. I just thought they were an overnight letter and freight company just like yourselves.

 

Not a really a US contract, but....


Analysts expect money-losing DHL will scale back in the United States and could make the announcement as early as today, handing FedEx Corp. and UPS a boon.

If DHL closes terminals and hubs, analysts say FedEx could get 35 percent of the lost business in the air and another 25 percent on the ground.

If the restructuring costs DHL 2 percent of revenue, FedEx stands to gain $45 million in business, according to a research note published Wednesday by Edward Wolfe. UPS, which has a more powerful ground network, stands to realize $71 million.

DHL, a subsidiary of Deutsche Post World Net, is the fourth-largest player in the U.S. overnight package business, with revenues in the Americas for 2008 estimated at $2.3 billion.

With 9 percent market share, DHL trails the U.S. Postal Service, (32 percent) FedEx (31 percent) and UPS (25 percent).

DHL joined the competitive U.S. overnight business in 2003 when it purchased Airborne Freight for about $1 billion, rankling FedEx and UPS, which accused the monopoly Deutsche Post of investing in a U.S. carrier to fight them on their own turf.

Both pressed the issue in lawsuits, which Airborne eventually won.

Airborne was the low-cost alternative to the big players, claiming about 10 percent of the domestic air express market and 2 percent on the ground.

DHL came in promising a threat to the established carriers, but in reality has kicked little sand in their faces, mostly because it has made a series of integration and operational errors that shook customer confidence.

Analysts estimate DHL has lost $2.8 billion in North America, including a recent $748 million write-down in the United States alone, where it has also announced 600 layoffs.

Wolfe expects DHL will close 85 small ground and air terminals -- as much as 25 percent of its U.S. capacity -- to stem the losses.

Satish Jindel, principal transportation analyst at SJ Consulting in Pittsburgh, says DHL will keep the U.S. markets it needs to protect the interests of global customers.

"I expect they will partner with other companies to handle business with smaller U.S. markets," he said.

Tuesday, Deutsche Post said it planned to split its logistics division into two divisions with separate executive boards. A second announcement could come today when Deutsche Post meets with analysts in Bonn, Germany.

Many analysts, including Wolfe, expect a more detailed plan will emerge in April or May when a DHL Teamsters contract will be ratified.

"DHL is in a tough position because if its customers believe there's even a chance it will leave the U.S., its competitive position will be compromised," Wolfe said. "At this point, we expect modest restructuring efforts will be announced March 6 ... with more restructuring to come."

For months, the buzz has been that FedEx or UPS was planning to buy the U.S. assets. That seems unlikely, based on antitrust issues, experts say.

"I think the antitrust people would not look too kindly on it," said Aaron Gellman, professor at the Transportation Center at Northwestern University. "It would be good enough if DHL just disappeared from a competitive standpoint."

Most doubt that will happen. Instead, analysts expect the deeply entrenched DHL will take time to retool and rise again.

"The burden of proof is always on anyone who suspects DHL doesn't have good strategy," said Paul Stewart, chief executive of 4-Elements Inc., a third-party logistics company headquartered in Arkansas. "They are a proven worldwide logistics organization."

Commerical Appeal

Jane Roberts

March 6, 2008

 

I wouldn't be updating those System Bids just yet. While we don't have any more intel than you all might have, we feel an "arrangement" of sorts will be made with FDX on the grnd. side of the operation and-or your small A/C feeder operation. Don't know if this will be a reciprocal agreement with ops in the EU, but it would make sense if that were to occur. Something has to be in the works though. There is just to much smoke not to be a fire somewhere. We just have to wait for the smoke to clear to see where we all stand (hopefully with all our jobs intact). DHL has said the word will come down mid May.

FAJ

 

Perhaps this is the reason for CDG being canceled... Mmmm?

Master Yoda
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