DHL's Big Annoucement on Wednesday
- Thread starter BrownSuit
- Start date
BigBrownSanta
Well-Known Member
At the least it lowers UPS's fuel cost by consolidating flights from both companies on the presort end. Plus UPS gets paid to do it which further offsets the fuel cost.
JMO.
MrFedEx
Engorged Member
Amazing. After all the hype and speculation about FedEx and the USPS, DHL goes with UPS. The AP article I read said that UPS gave them a better deal than FedEx. Given the current downturn in volumes, I cannot help but think this is a great deal for UPS to utilize excess aircraft capacity and another bad move by Fred S.
MonavieLeaker
Bringin Teh_Lulz
http://www.ups.com/pressroom/us/press_releases/press_release/0,1088,5013,00.html
ATLANTA, May 28, 2008 - UPS (NYSE:UPS) today announced it will work with DHL Express U.S. toward an agreement to provide transportation in its air network for all of DHL's express, deferred and international package volume within the United States. UPS also would provide air lift for DHL packages between the United States, Canada and Mexico.
A final contract is anticipated later this year. The agreement, when finalized, would be expected to extend for 10 years and produce up to $1 billion in additional annual revenue for UPS. The company said it would begin phasing in a limited amount of volume in 2008 with ramp up in 2009.
"We believe this arrangement with DHL would represent a wise use of our assets and network capacity while creating a substantial and profitable revenue stream for our company," said David Abney, UPS's chief operating officer. "We plan to move forward quickly on the final contract."
The agreement would not involve the pick-up or delivery of DHL packages to their customers, only the transport of packages, primarily between airports, in North America. As such, the work will be similar to that currently performed by UPS for the U.S. Postal Service.
UPS will be able to handle much of the anticipated new volume in its existing air network, although additional capacity will be added beginning in 2009 upon full implementation. The total amount of capacity needed will be determined at that time; however, UPS is currently scheduled to take delivery of seven new aircraft in 2008 and another five in 2009. The company is also well along on a $1 billion expansion of its UPS Worldport® air hub in Louisville, Ky.
The arrangement with UPS is part of a broader U.S. restructuring announced today by Deutsche Post World Net at a press conference in Bonn, Germany.
"We want to emphasize that this would be a relatively straightforward air lift agreement and that UPS and DHL will continue to compete in the marketplace under their own brands," Abney added. "UPS brings to customers its own unique value proposition. By providing these services to DHL, UPS will not be diminishing its competitive position or ability to differentiate itself with customers."
UPS (NYSE: UPS) is the world's largest package delivery company and a global leader in supply chain and freight services. With a daily delivery volume of 15.8 million packages, UPS offers the broadest portfolio of package delivery services in the industry and an extensive range of other distribution-related solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide and employs more than 425,000 people. The company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.
ATLANTA, May 28, 2008 - UPS (NYSE:UPS) today announced it will work with DHL Express U.S. toward an agreement to provide transportation in its air network for all of DHL's express, deferred and international package volume within the United States. UPS also would provide air lift for DHL packages between the United States, Canada and Mexico.
A final contract is anticipated later this year. The agreement, when finalized, would be expected to extend for 10 years and produce up to $1 billion in additional annual revenue for UPS. The company said it would begin phasing in a limited amount of volume in 2008 with ramp up in 2009.
"We believe this arrangement with DHL would represent a wise use of our assets and network capacity while creating a substantial and profitable revenue stream for our company," said David Abney, UPS's chief operating officer. "We plan to move forward quickly on the final contract."
The agreement would not involve the pick-up or delivery of DHL packages to their customers, only the transport of packages, primarily between airports, in North America. As such, the work will be similar to that currently performed by UPS for the U.S. Postal Service.
UPS will be able to handle much of the anticipated new volume in its existing air network, although additional capacity will be added beginning in 2009 upon full implementation. The total amount of capacity needed will be determined at that time; however, UPS is currently scheduled to take delivery of seven new aircraft in 2008 and another five in 2009. The company is also well along on a $1 billion expansion of its UPS Worldport® air hub in Louisville, Ky.
The arrangement with UPS is part of a broader U.S. restructuring announced today by Deutsche Post World Net at a press conference in Bonn, Germany.
"We want to emphasize that this would be a relatively straightforward air lift agreement and that UPS and DHL will continue to compete in the marketplace under their own brands," Abney added. "UPS brings to customers its own unique value proposition. By providing these services to DHL, UPS will not be diminishing its competitive position or ability to differentiate itself with customers."
UPS (NYSE: UPS) is the world's largest package delivery company and a global leader in supply chain and freight services. With a daily delivery volume of 15.8 million packages, UPS offers the broadest portfolio of package delivery services in the industry and an extensive range of other distribution-related solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide and employs more than 425,000 people. The company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.
Coldworld
60 months and counting
I wonder whats going to happen to the pickup and delivery duties that Im sure dhl is loosing their 
on, this was part of the business that dhl really needed some help on. I wonder if this "agreement" is a start to something larger that nobody is telling. Something is really not right with this.
on, this was part of the business that dhl really needed some help on. I wonder if this "agreement" is a start to something larger that nobody is telling. Something is really not right with this.thats what i was getting at.
badpal
Well-Known Member
They may end up buying us. I may be wrong but heard they are bigger company does anyone know ?
MonavieLeaker
Bringin Teh_Lulz
They must not have alot of those red and yellow trucks..cause i ordered some cd's in feb and a computer in late march..both came dhl and both dhl drivers were using ryder vans
UpstateNYUPSer(Ret)
Well-Known Member
I hope not--I don't look good in red and yellow.
Overall they are backed by the Deutsche Post, one of the largest European banks. However, they are having issues other than DHL, including possibly spinning off one of their banking branches.
While they might be able to come up with the cash to buy a stake in UPS, there would be no way they would be able to get close to a majority or survive the hostile takeover that would ensue.
Part of the reasons that companies like UPS give out stock is so not only do employees take ownership and pride in the company, but also to act in the best interests of company, which in this case would be not allowing another company to buy us out.
I wonder whats going to happen to the pickup and delivery duties that Im sure dhl is loosing their
DHL in their announcement stated that they will be suspending pickups and deliveries in some areas and more heavily relying on the USPS.
They have already been sending letters out to daily pickup customers across the nation who haven't been producing and letting them know that they have to pay per pickup now.
BOTTOM LINE: This is the time to submit Take Charge leads for customers of yours who are using DHL or FedEx. This is a time for UPS to take market share from our competitors.
DS
Fenderbender
How about getting the sales staff to brown up and ride with us ,because 11 hours is enough without stopping to chat with the shippers.The sales teams are so out of touch with the logistics of promising things that we just don't have the personel to live up to.They should tuck thier little laptops in a locker and come out and do the job they get paid for.Don't get me wrong,I agree that there is room for immense growth but as usual,saving money with cutbacks in all departments,and the same old ridiculous production standards on drivers makes me wonder if the ones making the decisions have any clue at all up there in the ivory tower.
UPS To Provide Lift For DHL Air Express Packages in North America
Wednesday May 28, 8:00 am ET
ATLANTA--(BUSINESS WIRE)--UPS (NYSE:UPS - News) today announced it will work with DHL Express U.S. toward an agreement to provide transportation in its air network for all of DHL’s express, deferred and international package volume within the United States. UPS also would provide air lift for DHL packages between the United States, Canada and Mexico.
A final contract is anticipated later this year. The agreement, when finalized, would be expected to extend for 10 years and produce up to $1 billion in additional annual revenue for UPS. The company said it would begin phasing in a limited amount of volume in 2008 with ramp up in 2009.
“We believe this arrangement with DHL would represent a wise use of our assets and network capacity while creating a substantial and profitable revenue stream for our company,” said David Abney, UPS’s chief operating officer. “We plan to move forward quickly on the final contract.”
The agreement would not involve the pick-up or delivery of DHL packages to their customers, only the transport of packages, primarily between airports, in North America. As such, the work will be similar to that currently performed by UPS for the U.S. Postal Service.
UPS will be able to handle much of the anticipated new volume in its existing air network, although additional capacity will be added beginning in 2009 upon full implementation.
The total amount of capacity needed will be determined at that time; however, UPS is currently scheduled to take delivery of seven new aircraft in 2008 and another five in 2009.
The company is also well along on a $1 billion expansion of its UPS Worldport® air hub in Louisville, Ky.
The arrangement with UPS is part of a broader U.S. restructuring announced today by Deutsche Post World Net at a press conference in Bonn, Germany.
“We want to emphasize that this would be a relatively straightforward air lift agreement and that UPS and DHL will continue to compete in the marketplace under their own brands,” Abney added. “UPS brings to customers its own unique value proposition. By providing these services to DHL, UPS will not be diminishing its competitive position or ability to differentiate itself with customers.” UPS (NYSE: UPS - News) is the world’s largest package delivery company and a global leader in supply chain and freight services. With a daily delivery volume of 15.8 million packages, UPS offers the broadest portfolio of package delivery services in the industry and an extensive range of other distribution-related solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide and employs more than 425,000 people. The company can be found on the Web at UPS.com. To get UPS news direct, visit www.pressroom.ups.com/RSS.
Wednesday May 28, 8:00 am ET
ATLANTA--(BUSINESS WIRE)--UPS (NYSE:UPS - News) today announced it will work with DHL Express U.S. toward an agreement to provide transportation in its air network for all of DHL’s express, deferred and international package volume within the United States. UPS also would provide air lift for DHL packages between the United States, Canada and Mexico.
A final contract is anticipated later this year. The agreement, when finalized, would be expected to extend for 10 years and produce up to $1 billion in additional annual revenue for UPS. The company said it would begin phasing in a limited amount of volume in 2008 with ramp up in 2009.
“We believe this arrangement with DHL would represent a wise use of our assets and network capacity while creating a substantial and profitable revenue stream for our company,” said David Abney, UPS’s chief operating officer. “We plan to move forward quickly on the final contract.”
The agreement would not involve the pick-up or delivery of DHL packages to their customers, only the transport of packages, primarily between airports, in North America. As such, the work will be similar to that currently performed by UPS for the U.S. Postal Service.
UPS will be able to handle much of the anticipated new volume in its existing air network, although additional capacity will be added beginning in 2009 upon full implementation.
The total amount of capacity needed will be determined at that time; however, UPS is currently scheduled to take delivery of seven new aircraft in 2008 and another five in 2009.
The company is also well along on a $1 billion expansion of its UPS Worldport® air hub in Louisville, Ky.
The arrangement with UPS is part of a broader U.S. restructuring announced today by Deutsche Post World Net at a press conference in Bonn, Germany.
“We want to emphasize that this would be a relatively straightforward air lift agreement and that UPS and DHL will continue to compete in the marketplace under their own brands,” Abney added. “UPS brings to customers its own unique value proposition. By providing these services to DHL, UPS will not be diminishing its competitive position or ability to differentiate itself with customers.” UPS (NYSE: UPS - News) is the world’s largest package delivery company and a global leader in supply chain and freight services. With a daily delivery volume of 15.8 million packages, UPS offers the broadest portfolio of package delivery services in the industry and an extensive range of other distribution-related solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide and employs more than 425,000 people. The company can be found on the Web at UPS.com. To get UPS news direct, visit www.pressroom.ups.com/RSS.
U(s)PS Guy
Well-Known Member
maybe this is why UPS is lowering the total nationwide USPS volume handled for the second quarter in a row...
We are the largest package delivery company in the world, the third largest non-government employer in the country and the seventh largest non-govt. employer in the WORLD.
N
never-outgunned
Guest
ups tells the public that they have some of the safest, most professional folks in the world. Ups knows that the strong relationships their people have with the customers(especially drivers), is one of the strongest out there, and is absolutely the most valuable thing this company has. But behind the scenes ups absolutely does not trust anyone, they probably micromanage their employees more than any company out there, and have no respect for their employees. And yes, they do think their employees are lazy, out there trying to defraud the company on a daily basis.
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