DHL: Shuts Down U.S. Delivery Operations, Who Will Pick Up the Slack?

Discussion in 'The Latest UPS Headlines' started by cheryl, Nov 11, 2008.

  1. cheryl

    cheryl I started this. Staff Member

    DHL: Shuts Down U.S. Delivery Operations, Who Will Pick Up the Slack? - Seeking Alpha

    UPS stands to be a big winner in the deal, and to be sure, DHL’s market share is up for grabs from the Big Two. UPS, assuming the company inks a deal by the end of the year with DHL, should gain tremendous operating leverage and capacity utilization (as discussed in the company’s Q2 2008 conference call) at a time when the company could sure use it. UPS will essentially receive new package volume with little or no shifting of company resources, and minimal costs to acquire. That’s a solid double at a time when there are so very few good growth pitches to hit.