FedEx Spins The DHL/UPS Deal

Discussion in 'FedEx Discussions' started by MrFedEx, May 30, 2008.

  1. MrFedEx

    MrFedEx Engorged Member

    Today, employees received the official memo detailing the FedEx corporate response to DHL's deal with UPS to line-haul much of their volume via UPS aircraft. The fact that most transportation analysts have stated that this was an excellent move by both UPS and DHL was, of course, ignored, and we were told that "systematic disruptions" would allow FedEx Express to see major gains in volume from DHL. It was also implied that UPS would lose packages to FedEx by partnering with DHL.

    We'll see, but I tend to side with the analysts.
     
  2. moreluck

    moreluck golden ticket member

    UPS will have the air deal with DHL. The package delivery I would think would be the customer's choice. I would think that both UPS & FDX can benefit. Fred sure can 'spin' a tall tale.
     
  3. drewed

    drewed Shankman

    When DHL starts making customers happier getting their packages earlier/ on time bc of UPS we ll see who really benefits from customers jumping the DHL ship
     
  4. 3 done 3 to go

    3 done 3 to go In control of my own destiny

    Don't worry there will be weather delays with all the feeders and planes.
     
  5. cllamont

    cllamont New Member


    Where is this memo? Anyone post it?
     
  6. MrFedEx

    MrFedEx Engorged Member

    Internal FedEx memo. If you work in the Express division there will be a copy of it posted somewhere in your station.
     
  7. SmithBarney

    SmithBarney Well-Known Member

    I read it.... ok skimmed it.
    But also in the memo was mention of DHL reducing its operations by 30% and closing/consolidation of centers/stations etc... I'll see if I can get a better look at it tomorrow.
     
  8. Coldworld

    Coldworld Well-Known Member

    mr. F, did the meno mention the reason for this???
     
  9. MrFedEx

    MrFedEx Engorged Member

    No direct reason given, but the implication I got out of the memo was that UPS providing aircraft lift to DHL would somehow compromise UPS operations. Perhaps they are thinking it will adversely effect the ability of UPS to move all of it's own pkgs....I don't really know their rationale. I'm sure our sales reps are "warning" shippers that perhaps UPS cannot handle the increased volumes. The term "systematic disruptions", as used in the memo, is pretty vague.
     
  10. COSMOS

    COSMOS Member

    I don't think DHL's volume will affect them at all. With the amount service cuts and rate hikes DHL's volume will dwindle. DHL uses around 35 Aircraft in the US. Compare that to 250 for UPS and 700 for FedEx. Besides, if worse came to worse it would be DHL's cans left sitting on the ramp.
     
  11. candymn27

    candymn27 New Member

    hope you guys get this deal with dhl soon. means you get to take there crap we have been taking for a couple years. besides whoever transports the freight is who will have it in 2 years anyway weather it be ups or fed ex the customers are tired of Day n Half Late dhl freight