Are we in trouble?

[JL 0513]

Can't seem to find the source but DHL is larger than UPS and Fed ex. They also make more money.

Can't seem to find info on size comparisons between the two. DHL is still very large in Europe and elsewhere but having little presence in the worlds largest economy, the US, hurts them. Be interesting to find out the hard numbers if someone can find them. Hard to find 2013/14 numbers. Older articles pop up in searches.

 

[Cementups]

DHL is making a come back????

Can't seem to find the source but DHL is larger than UPS and Fed ex. They also make more money.

DHL never went away. They just went back to their origins and focused on the international shopping service in Europe and abroad. They are HUGE over there.



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[OLDMAN3]

Can't seem to find the source but DHL is larger than UPS and Fed ex. They also make more money.

DHL was absorbed into Deutsche Post (the former German Post Office now privatized) in 2001-2002. Deutsche Post DHL is the world's largest private courier company, measured by revenue. Deutsche Post DHL still delivers the vast majority of mail in Germany. DHL Express U.S dropped out of the US domestic market but still provides international shipping to and from the US.

DHL Express is Deutsche Post’s smallest unit, with about a fifth of revenue. Counting mail, freight, forwarding and supply- chain services, Deutsche Post’s 2010 sales of 51.5 billion euros topped UPS’s $49.5 billion and FedEx’s $34.7 billion.
http://www.bloomberg.com/news/2011-...-after-9-6-billion-bleed-freight-markets.html

 

[UpstateNYUPSer(Ret)]

UPS really doesn't want to delivery those little low profit ground packages ant more. They want international and freight. Or just morph into a pure logistics company that doesn't even deliver anything but tells everyone else how to do it.

Small package will someday be just another division with United Parcel Service Inc.

 

[Brownsfan]

Are we in trouble? I spend way to much of my life trying to answer that question.

I believe we are not in trouble, but in transition. The market is changing, the customer is changing, and Technology is changing to try and keep up with the times.
When I read and consider articles just like this I one, I always notice 2 things. 1 amazon is always mentioned. 2.free or low cost shipping is mentioned.
We are literally being dragged down by amazon to unprofitability. Amazon doesn't care about profit, it cares about cornering the market, so it can be UPS and walmart hybrid someday.
Think about it, we have more packages than ever(more revenue) but less profit per pkg. that is amazon to a T. Amazon is such a huge customer that they are forcing us to mirror their business model and it's un sustainability.
And secondly, ups has lost its message with its customer. What can brown do for you is not working. UPS needs to launch a documentary called what brown is doing for you! It needs to show people just how costly, complicated and valuable shipping truly is.
People don't value shipping anymore because it has been artificially been cheapened. If we don't change that we maybe in trouble.

 

[barnyard]

People don't value shipping anymore because it has been artificially been cheapened. If we don't change that we maybe in trouble.

People put a value on shipping and because Amazon and other online retailers offer free shipping, the value people place on it is zero. It would bet dimes to dollars that the majority of the complaints on UPS facebook page on any given day are from Amazon customers that had a delayed package. They expect UPS to bend over backwards for a shipment that is barely profitable.

On the one hand, UPS needs to keep as much of that volume as possible to keep FE from having to grow its network. On the other, UPS also needs to charge enough to make that volume worth having.

 

[TooTechie]

Can't seem to find the source but DHL is larger than UPS and Fed ex. They also make more money.

"Founded in 1907, UPS is the world's largest package delivery company and a leading global provider of specialized transportation and logistics services."

http://www.ups.com/content/us/en/about/history/index.html?WT.svl=SubNav

 

[TooTechie]

The article also pointed out the revenue per package is dropping. We are moving lots and lots, but at thinner and thinner margins. There are only 2 ways to fatten margins, cut costs or raise rates.

One word:Surepost

 

[barnyard]

One word:Surepost

Surepost brought us customers that left or added volume that FE would have picked up. Volumes have increased in the past few years, revenue per package has dropped (per the article). Surepost has some effect, but I would bet the effect of surepost has been more positive than negative.

 

[TooTechie]

Surepost brought us customers that left or added volume that FE would have picked up. Volumes have increased in the past few years, revenue per package has dropped (per the article). Surepost has some effect, but I would bet the effect of surepost has been more positive than negative.

Surepost is cannibalizing ground. We've seen it first hand on car. Stuff I used to deliver ground is coming surepost.

 

[barnyard]

The next big hit to costs are going to be taking loads off the rails and putting them on the road.

I would bet that by the next contract, UPS is looking for lower driver wages for new hires.

 

[barnyard]

Surepost is cannibalizing ground. We've seen it first hand on car. Stuff I used to deliver ground is coming surepost.

That may very well be, but there are also ground packages in your load that were not there before surepost.

Plus, surepost was a response to shipper demand. Had we not started doing it, those shippers would have gone to FE.

 

[IVE GOTTA PACKAGE 4U]

That may very well be, but there are also ground packages in your load that were not there before surepost.

Plus, surepost was a response to shipper demand. Had we not started doing it, those shippers would have gone to FE.

They should just make a few surepost routes. for areas that get alot of surepost,deliver them twice a week or something like that.

 

[upschuck]

Is Surepost any cheaper than a normal ground package going to any business? UPS just eats the cost of PO delivering it through the shear volume being delivered to PO? Did USPS cut the price they charge UPS on Sept 7 when they slashed prices to the biggest shippers? Certainly we have got to be close to the top of their shippers.

 

[IVE GOTTA PACKAGE 4U]

Is Surepost any cheaper than a normal ground package going to any business? UPS just eats the cost of PO delivering it through the shear volume being delivered to PO? Did USPS cut the price they charge UPS on Sept 7 when they slashed prices to the biggest shippers? Certainly we have got to be close to the top of their shippers.

No guarantee time In transit or insurance.

 

[PT Car Washer]

My building recently put the Surepost going to one Post Office on an AM air driver. Meets the regular driver at the Post Office and he scans and makes the actual delivery. Before he was going back 3 or 4 times. Now the Air Driver risk having late air because he is waiting for the last surepost box to make it to his car.

 

[MoarTape]

The next big hit to costs are going to be taking loads off the rails and putting them on the road.

I would bet that by the next contract, UPS is looking for lower driver wages for new hires.

They were looking to do this in this past contract.

 

[greengrenades]

Can't seem to find info on size comparisons between the two. DHL is still very large in Europe and elsewhere but having little presence in the worlds largest economy, the US, hurts them. Be interesting to find out the hard numbers if someone can find them. Hard to find 2013/14 numbers. Older articles pop up in searches.

Yea, I made the comment that someone else made that "DHL will make a comeback." and someone corrected me and showed me the numbers because I didn't believe it too. I'm looking right now and don't see any recent numbers, however the links he provided me at the time did show DHL was in fact larger and made more profit than UPS and Fedex. I did manage to find one for 2012 and it says in fact DHL is number one but I don't really understand the figures.

 

[oldngray]

DHL is subsidized by the German government I think.

 

[IVE GOTTA PACKAGE 4U]

DHL is subsidized by the German government I think.

The GERMAN goverment knows how to keep a balanced budget.

USA and USPS,different story.