why is everyone trippin' over this ups/dhl deal???

Coldworld

60 months and counting
"Anti-trust Laws: Federal statutes that regulate trade in order to maintain competition and prevent monopolies. Many common business practices are governed by these statutes. The Sherman antitrust act of 1890 made price-fixing (the setting of prices in cooperation with competitors) illegal. The Clayton act of 1914 outlawed price discrimination (charging different prices to different buyers), as did the robinson-patman act of 1936.

Antitrust refers to government policy to regulate or break up monopolies in order to promote free competition and attain the benefits that such competition can provide to the economy and to society as a whole."

DHL is hiring UPS to fly their packages in North America--end of story. The current DHL fleet is old and will have to be replaced/upgraded in the near future (big money). Many of their aircraft do not use the igloos that are used to transport the freight like UPS and FedEx (very inefficient). Their parent company has poured billions into their US operation to compete with FedEx and UPS and they have come to the conclusion that to continue serving the US, they need to radically change how they operate in the US. They made a business decision to cut costs and use a more efficient method to transport their packages.

DHL Ground will still exist and still compete with UPS and FedEx. DHL Express will still exist and still compete with UPS and FedEx. Outside the US, DHL is the market leader for international express shipments and the Deutsche Post is much larger than both UPS and FedEx.

I just hope this doesnt bite ups in the ass later when dhl starts saving some money to come back stronger in 10 years. I still think ups has its eyes on dhl in the future...jmho.

Customers in the US can choose from DHL, FedEx, UPS, USPS and a host of regional carriers to get their stuff from point A to point B. Plenty of competition in the package delivery business---ask any sales person in the industry. How does this deal change that?

The USPS hired FedEx and UPS to transport most of their Priority Mail and 1st class mail. FedEx, UPS and DHL all use other carriers to deliver to areas that would otherwise be a money-losing operation for them. Outside of the US, DHL uses many different airlines for their airlift. FedEx and UPS do the same thing.

While it is certainly unfortunate that many people will lose their jobs, it is business. At the end of the day, DHL made a business decision to cut costs in the US and hire a company to perform a service. No anti-trust issues here.
 

upscorpis

Well-Known Member
McCain Takes On Populist Tone Over Job Cuts in Ohio
http://online.wsj.com/article/SB121816455729823263.html?mod=yahoo_hs&ru=yahoo

FREDERICK W. SMITH JOINS SUPPORTERS OF MCCAIN IN 2008
Industry Leader To Serve As National Co-Chair
http://blog.4president.org/2008/2007/02/frederick_w_smi.html

Top Political Connections Abound For FedEx Founder, CEO
http://www.godeke.org/News/PhiAlumnus_Smith.htm

A McCain Cabinet - Who Would John McCain Put in the White House?
http://usconservatives.about.com/od/2008presidentialelection/a/McCainCabinet.htm

Expect more pro-FDX shenanigans if "Maverick" gets elected.
 

MrFedEx

Engorged Member
Man, did you hit the nail on the head in mentioning the Smith connection. Anyone who doesn't think he's involved in this deal is seriously out of touch. This guy has SO many politicians in his hip pocket that owe him big-time favors...all it takes is a phone call and they are raring to go to bat for good old Fred. If FedEx had worked out a deal with DHL, I'm sure UPS would be trying the same anti-trust tactics.

I feel bad for the DHL pilots who will lose their jobs, but they are just pawns in a much bigger battle between UPS and FedEx. This whole scenario is just another example of the inordinate amount of power that politically-connected business leaders like Smith have in our corrupt political system. Sickening...
 
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