DHL's Big Annoucement on Wednesday

Discussion in 'UPS Discussions' started by BrownSuit, May 24, 2008.

  1. BrownSuit

    BrownSuit Active Member

    It's common knowledge that DHL had their board of director's meeting on May 5th and came out saying we finally lost too much money and need to do something about it.

    There are a number of transportation journals/mags that have stated that there will be a big announcement this week, several have been more specific about it being Wednesday, about what exactly DHL will do in the short-term.

    Traffic World is stating that the announcement is Wednesday, however that is a subscription only service, so I can't post the link to the article here

    Any thoughts or speculation on what exactly DHL's announcement is going to be? There have been a number of things coming down the pipe such as
    raising rates, cutting deliveries to rural areas and possibly passing off to the USPS (Because of a prior partnership with DHL Home), and suspending daily pickups to some customers.

    Much of this chatter comes from these journals, but wondering if anybody has spoken with their local Mustard and Ketchup driver to see what they think about it all or got your own ideas?

    There have been previous "announcements" in the history of DHL, so I'm wondering if this is all it's cracked up to be or just business as usual.
    Last edited: May 24, 2008
  2. I'd be surprised if DHL did partner up with the USPS since they too lost money last quarter. I'm thinking they will turn over their domestic operations to FDX. This may include a provision where FDX owns a percentage of DHL International.
  3. Coldworld

    Coldworld Well-Known Member

    there was an article that stated that if there were any partnerships that ups wouldnt be involved, not sure if this was dhl or ups' idea. Just when you think fedex is down, they pull something out of their hat. When they were loosing in express they buy rps, then when that was slowing, they start fedex freight, then walkins, then kinkos, then they get a break in congress on that groung/air
    act. Yes they have some pretty big things going on with the teamsters and the feds, but they just seem to be keeping the wheels going.
  4. MrFedEx

    MrFedEx Engorged Member

    This may be the big announcement a DHL driver mentioned to me back in February. He had given an original date of March 6th, but nothing happened that day. Even though both companies have said negotiations are off, I wouldn't doubt that a possible DHL/FedEx alliance on some portion of DHL's operations is still possible.

    As far as FedEx problems go, I think Fred's magic hat is about to run out of rabbits. The final version of the FAA Bill could still include verbage re-classifying FedEx Express under the NLRA. UPS has been heavily lobbying politicians to have such language put into the legislation....for obvious reasons. The Ground issue has not gone away, and volumes are way down across the board. Smith is a shady operator who is way overdue for some payback. I hope he gets his due.
  5. Coldworld

    Coldworld Well-Known Member

    Mr. fedex, I totally agree with you on the fedex/dhl thing. I think they have been planning it all along and has just put a hush hush on it. And does anyone think ups is going to do anything about it...I dont think so, theyre too busy busting their lazy, no good greedy pathetic drivers.
  6. bad news

    bad news Guest

    106 buildings to close
    43 airports
    May 28th
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    What about the rumored FedEx partnership?
  8. satellitedriver

    satellitedriver Moderator Staff Member

    They will retreat back behind the Maginot Line and consider their next assault.
  9. Coldworld

    Coldworld Well-Known Member

    If the airport thing is correct, then it wont do them much good to use the post office, since they dont have many of their own planes, and use ups and fedex for cargo space. It wouldnt surprise me if fedex tries this. If this is true, many customers are going to get uneasy with dhl, and maybe a few customers will come back to us, but I dont think it would make too big of difference in volume levels, but maybe a nice small bump....who knows. Hopefully for the teamsters at dhl, they will continue with the metro operations so these folks still have a job...for now. Acouple of years back, there was a few posts about dhl buying airborne and how this would change things up, many on here said that dhl is the ones with the big bankroll and everyone should worry....very true, but they did loose 20% last quarter...just too much going on, exel, dhl, etc, etc. They have talked about spinning off some of their businesses. Personally, I think fedex is the most dangerous, they arent afraid to take a risk and some of them have paid off, people can say whatever they want, they have done amazing for themselves in 40 years, personally I hope the express and groung guys become union, and they have multiple millions in back taxes to pay. I dont want thenm to go out of business, but at least get pushed down the ladder a few steps, give ups a bit more breathing room.
    Last edited: May 24, 2008
  10. Bad Gas!

    Bad Gas! Active Member

    Coldworld:...I agree with you.Ups should be able to get 100$ per hour worth out of thier drivers for the price of 28$, so they can pay the overpayed managers......On another note..We had another driver blow his knee this week.The wear and tear of heavy dispatches will get you in your forties and fifties..

    And about DHL...If they croak, UPS and Fed should reap some volume growth from it..along with USPS...Now the time for discounts...TAKECHARGE PROGRAM!
  11. Coldworld

    Coldworld Well-Known Member

    There is a way to be profitable, customer orientated, and efficient without kicking the shiitt out of your employees. There is a upside to working steady and safe, less accidents, car accidents, and less damages. Like others have said on here, safety seems to be a smokescreen, speed is king...period. I would like to know the ratio of people who start with ups, to the amount of folks that retire from ups...that would be interesting.
    Last edited: May 24, 2008
  12. satellitedriver

    satellitedriver Moderator Staff Member

    When I started with UPS in 1986, I was told the national average for a UPS driver was 3 years.
    I have seen 150(at least those I remember) "wanna be" drivers come and go. (in a center of only 50) I have seen one half that number of on road sups come and go. I have seen 13 center manager's come and go.
    I still am here. Original knees, shoulders and attitude.
    I was told I would not last, because I stared too late in life.
    3yrs to go for me.
    Any bets out there that I won't make it?
  13. trplnkl

    trplnkl 555

    Sat, not that I am criticizing you in anyway but it is well established on this forum that you are in a non-unique but not normal situation with your one man center. Some folks might even consider your routine to be a retirement route. Almost and apples to oranges comparison to regular UPS routes. I do wish you continued good luck for the next three years.
  14. Bad Gas!

    Bad Gas! Active Member

    Sat, you'll make it three years butit's one day at a time for all of us in reality..I'd like to see more center manager's come and go-but it's usually be careful what you wish for ...the new boss might be worse than the previous..
  15. BURMDPsupe

    BURMDPsupe Member

    I'm not too sure about the FedEx takeover if DHL decides to pull out of the NA market; remember, some of those DHL folks are unionized and we all know how much Fred loves the union.

    I was informed that a major announcement would take place on Thursday.

  16. worldwide

    worldwide Active Member

    "Stock analyst Ed Wolfe predicted on May 16 in a research note that DHL could close as many as 90 to 100 of its U.S. terminals, return to its previous life focusing on international service and outsource local deliveries to trucking firms and the U.S. Postal Service.

    Wolfe reported that as early as July DHL could begin closing sort and distribution terminals, which tend to combine ground and air products. DHL's big air hub in Wilmington, Ohio, is likely to survive the cutback.

    The analyst also forecast that DHL is likely to partner with USPS for last-mile delivery for small ground shipments, and may rely on YRC Worldwide (parent of Yellow Transportation and Roadway among others), FedEx Freight or other motor carriers for line haul delivery between its remaining terminals and USPS local drop-off centers, known as Destination Delivery Units, or bulk regional centers.

    The logical place for DHL to outsource is USPS, he said, because it has the lowest cost and they already have a relationship through the DHL @Home Service to do residential last-mile delivery. Under such a scenario, DHL could concentrate delivery operations in large cities, leaving to its partner smaller cities and rural areas where there is limited business but lots of territory to cover.

    Wolfe warned that DHL could soon run into service problems with its most demanding customers. "We believe these restructurings will likely lead to untenable service levels for many current DHL Express and Ground customers, and a material amount of existing DHL Air Express and Ground business will likely move to UPS and FedEx," he wrote May 16.

    As it prepares to trim its domestic U.S. network, DHL has recently begun to selectively ask some of its largest customers, who previously negotiated deep discounts, for 10 percent to 15 percent annual rate increases or drop non-profitable accounts that decline to do so, Wolfe said in his research note."
  17. Coldworld

    Coldworld Well-Known Member

  18. scratch

    scratch Least Best Moderator Staff Member

    I wonder if this means we will get Dell back? Maybe we will be able to DR notebooks like my DHL driver does........:dissapointed:
  19. Coldworld

    Coldworld Well-Known Member

    scratch, Ive stopped counting the number of times Ive seen a fedex ground wine pkg on someones porch, or a dhl "signature required" pkg just left.

  20. I'm wondering if someone should make an anonymous call to their state's local liquor commission about FEDEX leaving those signature required-over 21 years old packages. Must be some kind of legal procedure their breaking, I mean what if a bunch of mischievous kids find that booty and party? How is FEDEX going to explain that?? "Oh those ground guys work for themselves, they are not employees of FEDEX."