UpstateNYUPSer(Ret)
Well-Known Member
I am sitting here watching the Yankees/Mets and can't help laughing at the big DHL banners in the bullpen at Shea Stadium. I wonder if we will be pickup those up on an ARS after the season is over.
Here is a clear sign DHL customers are nervous about their service. A long time user of DHL used us for the first time and bulked out the truck front to back! The DHL straight truck actually came by and when he saw he had nothing to pick up saw him talking to himself and shaking his head. DHL here is slowing fading away.
Do you work in a big metro area? I do and shippers are definetly switching to UPS.As for flying their cargo,its a billion dollars a year just to move their packages.Were not delivering them,just filling up space on our planes.I read a news report that DHL is closing 1/3 of their facilities,17% of their routes will be eliminated and no more planes will be flying.If that shows a company that is gaining ground then i don't know anything about running a business.I really think ups is banking on much of this dhl volume, especially right now with the economy not doing very well. I really doubt dhl is going anywhere, especially in the metro areas. They are loosing strength in the country, but knowing them, they are going to hit our customers hard in the large cities. What do you all think about ups flying their cargo, will this kick ups in the butt later? There was a pcm this last week about ups going hard after usps volume, and how ups is making deals with post office shippers. Do any of you notice the large amounts of basic pkgs. Seems like if ups can start kicking down fedex's door things could start rolling into high gear, economy or not.
I really think ups is banking on much of this dhl volume, especially right now with the economy not doing very well. I really doubt dhl is going anywhere, especially in the metro areas. They are loosing strength in the country, but knowing them, they are going to hit our customers hard in the large cities. What do you all think about ups flying their cargo, will this kick ups in the butt later? There was a pcm this last week about ups going hard after usps volume, and how ups is making deals with post office shippers. Do any of you notice the large amounts of basic pkgs. Seems like if ups can start kicking down fedex's door things could start rolling into high gear, economy or not.
Ask yourself if you want UPS to have an extra billion a year, or FedEx, because if we don't do it someone else will.
On Thursday at our PCM We were told that DHL is history in Central Ca and that we should scoop up some sales leads. They stoped all ground service. I don't know if you guys know it but were now moving DHL ground packages through our air service. Yes, DHL is history. It's just a matter of time to go nationwide.
It's like a previous poster said, Fedex always wants 100% of everything or they won't take anything. I imagine they wanted DHL's metro air deliveries and DHL isn't about to give up the one area that makes money for them. UPS, for once, was looking at the potential profit and bottom line. I think they also probably had a lot of meetings weighing the pros and cons before they did this. At least, I hope they did.
So that's how the 2 person contract meetings I heard about go?From what I heard, they had 2 guys in a room and they did "Odds, evens" with Odds being help DHL and Evens being tell DHL to go back to Germany. Odds won.
DHL is not in trouble by any sense of the word. They still are the LARGEST shipping company worldwide. What the issue really is is that they did not want to continue to have massive losses, even though they were planned, especially with the current economic climate. The dollar is in the toilet etc.
We now will deliver those DHL packages that come to the USA from overseas.
DHL will still earn a profit, but we will just be finalizing their shipping process.
In this economy one thing is for sure and that is we are blessed with this work, which should add a billion to our gross or more.
UPS cannot afford DHL by the way. Had DHL offered good money for their drivers etc, you may have seen a different outcome with this story.
I used to watch the local DHL gal bring her kid with her on her route all day.
That article outlines the UPS airlift agreement, but not the actual delivering of DHL international packages, unless it was in the video, it didn't load for me.