FDX in talks with DHL

[MrFedEx]

FedEx has always had trouble in Europe and got a lot of really bad press awhile back when they just walked away from Great Britain. I've heard we fly a lot of half-empty planes to Europe, which return to the US with even less of a load. People forget just how small Europe is size-wise compared to the USA. Many countries are so close together that overnight pkgs can be trucked instead of flown. The express market is small because the European postal services are very efficient, unlike the USPS. That makes it doubtful that the overnight segment of the business will ever be that lucrative for any US operator that moves in. Correct me if I'm wrong, but isn't the UPS presence in Europe mainly a ground operation?

Both DHL and TNT are excellent companies...in Europe. I can remember seeing lots of orange and white TNT trucks here in the US before TNT pulled the plug on the domestic market.

[coldworld]

Originally Posted by MrFedEx

FedEx has always had trouble in Europe and got a lot of really bad press awhile back when they just walked away from Great Britain. I've heard we fly a lot of half-empty planes to Europe, which return to the US with even less of a load. People forget just how small Europe is size-wise compared to the USA. Many countries are so close together that overnight pkgs can be trucked instead of flown. The express market is small because the European postal services are very efficient, unlike the USPS. That makes it doubtful that the overnight segment of the business will ever be that lucrative for any US operator that moves in. Correct me if I'm wrong, but isn't the UPS presence in Europe mainly a ground operation?

Both DHL and TNT are excellent companies...in Europe. I can remember seeing lots of orange and white TNT trucks here in the US before TNT pulled the plug on the domestic market.

So, there is no fedex service in england???

[Uncle Rico]

DHL couriers here in MO are Teamsters. In Dallas, according to my bro-in-law who has to use them bc of his work, says they are independent contractors. How in the world would Fred deal with Teamsters joining his non-union (except for pilots) company. He already knows how to screw over ICs.

[paidslave]

What will happen to 8300 UNION jobs folks?

Hopefully FEDEX will allow these members to stay union.


I have a difficult time believing all these UNION employees could be fired!

[fredly00]

While our Manager isn't the end all in information.
but Sounds like DHL might be closing shop in the US...

Of course thats all rumor, until it happens.

[coldworld]

Originally Posted by fredly00

While our Manager isn't the end all in information.
but Sounds like DHL might be closing shop in the US...

Of course thats all rumor, until it happens.

was this a pcm topic for you guys?

[fredly00]

haha PCM... it was said in passing..

[RockyRogue]

Originally Posted by 1timepu

Corporate America is no playground, maybe Tie could fill us in, but it is more like stab me in the back throw me under the bus mentality.

Oh, I agree Corporate America is no playground. Its a 'dog-eat-dog' world. And I believe it doesn't have to be. I remember reading a number of years ago--around the time DHL bought the old Airborne--when a UPS spokesperson made a comment. It was something along the lines of, "If we have to follow the rules, our competition should, too."

Originally Posted by 1timepu

Fedex has trouble with it's business in all facets. By making more difficult for them would put them in a more precarious position. It happens all the time in the business world yes it is unethical, but the real business world has no ETHICS

True, FDX does have trouble. And IMHO, there are a bunch of financial/accounting shenanigans going on, too. Making it more difficult for them might help UPS short-term but what about long-term? If UPS decided to smash Fred like a bug, you can say good-bye to 90% of the Ivory Tower in Atlanta (not that you'd miss them much) for anti-trust violations. I disagree on there being absolutely no ethics in corporate America. I'll admit its rare but there are ethical execs. Remember Enron? What kind of ethics do you think the person posessed that blew the whistle on that smoke-screen? -Rocky

[FAVREFAN]

Originally Posted by ups79

Why would anyone have to sell their most unprofitable? Couldn't they just pull out of that area. Better yet why would someone like fedex pay for Dhl's unprofitable?

Because with Fedex's infrastructure....they can turn a profit on it.

More importantly here, before everyone gets their panties in a bunch about this. All these comments and speculation have come from one small article in a German financial newspaper. All other media outlets are reporting what the original newspaper reported. Nothing is available ANYWHERE as of yet to back up these claims other than quotes from the original small article on 01/25/2008. DHL is not pulling out! They may, I repeat may, sell a small portion of their US operations in order to get profitable sooner. As of today, 01/28/2008, DHL says none of these comments(about the sale) are valid. There are plenty of facts on CNBC and MSN Money/Investing.

[ups79]

Originally Posted by FAVREFAN

Because with Fedex's infrastructure....they can turn a profit on it.

More importantly here, before everyone gets their panties in a bunch about this. All these comments and speculation have come from one small article in a German financial newspaper. All other media outlets are reporting what the original newspaper reported. Nothing is available ANYWHERE as of yet to back up these claims other than quotes from the original small article on 01/25/2008. DHL is not pulling out! They may, I repeat may, sell a small portion of their US operations in order to get profitable sooner. As of today, 01/28/2008, DHL says none of these comments(about the sale) are valid. There are plenty of facts on CNBC and MSN Money/Investing.

Why does fed ex buy it. Dam wouldn't they get some of it if dhl decides to leave that unprofitable area.

[MrFedEx]

Originally Posted by coldworld

So, there is no fedex service in england???

Let me clarify that while we definitely DO have service to Great Britain, FedEx walked-away from it's employees and contracted everything out to other providers a few years back.FedEx planes fly there, but someone else picks-up and delivers the pkgs unless they've done a complete turnaround and hired new employees. They were losing money and FedEx didn't like the demands of British workers.

This is how Fred Smith does business. When employees try to stand-up for their rights, the company does everything in it's power to stomp them into oblivion.

[dcdriver]

the FEDREAL TRADE COMMISSION will not let this happen.

[MrFedEx]

The rumor mill still has FedEx taking over some of DHL's international inbound business and DHL assuming some our intra-Europe ops. Upper management never discusses any deals and/or negotiations with us lowly drivers, so we won't find out anything concrete until the rest of the world does. The net result of the above scenario would be the end of DHL in the US, because their domestic freight operation is losing money hand over fist. One industry analyst quoted in an earlier post at this site is essentially saying that DHL would sit back and watch it die.

I do know one thing, and that is that Smith won't accept any new union employees.

[FAVREFAN]

Originally Posted by MrFedEx

The rumor mill still has FedEx taking over some of DHL's international inbound business and DHL assuming some our intra-Europe ops. Upper management never discusses any deals and/or negotiations with us lowly drivers, so we won't find out anything concrete until the rest of the world does. The net result of the above scenario would be the end of DHL in the US, because their domestic freight operation is losing money hand over fist. One industry analyst quoted in an earlier post at this site is essentially saying that DHL would sit back and watch it die.

I do know one thing, and that is that Smith won't accept any new union employees.

Yes, DHL's domestic freight is a problem and that is what is rumored to be on the block. Nothing more than that. Analysts say Fedex could turn a profit on that segment immmediately. Don't hold your breath waiting for DHL's US operations to die, not going to happen.

[coldworld]

back to top!

[fredly00]

Not sure what DHL is up to, but I got an email this morning
http://www.dhl-discoverlogistics.com
looks like they want to get into the logistics game too.

[1timepu]

I would be VERY surprised if it happened. Fedex has so many problems right now, and could have more in the near future.

[feeder53]

I believe there is a great deal of turmoil when there is a buyout/takeover, It takes a good amount of time for the new owner to see what he has and how it works. UPS should have the advantage for a while and if they act swiftly and decisively thay may be able to pull ahead. I am sure there is a UPS thinktank where they are watching this game and looking at the plays to come up with a strategy.

[COSMOS]

Originally Posted by MrFedEx

Let me clarify that while we definitely DO have service to Great Britain, FedEx walked-away from it's employees and contracted everything out to other providers a few years back.FedEx planes fly there, but someone else picks-up and delivers the pkgs unless they've done a complete turnaround and hired new employees. They were losing money and FedEx didn't like the demands of British workers.

This is how Fred Smith does business. When employees try to stand-up for their rights, the company does everything in it's power to stomp them into oblivion.

FedEx aquired ANC and now they are FedEx UK. All FedEx employees and vehicles.

[rod]

Originally Posted by feeder53

I'm sure there is a UPS think tank where they are watching this game and looking at the plays to come up with a strategy.

For some reason that statement makes me laugh. UPS think tank-- thats hilarious ............................and dangerous

[john346]

Wouldn't it be great? Maybe the moronic "Fed Up" joke will die! I think its time for us to get another started & pronto, so the FDX & DHL drivers can listen to these. So lets see, the punch line is..... Federal hell? Freds Dill? Come on kids, lets chime in & get one going, you think tank cats too (if there is such a thing!), and maybe put Fed Up deep in the dirt!

[MrFedEx]

Originally Posted by COSMOS

FedEx aquired ANC and now they are FedEx UK. All FedEx employees and vehicles.

The fact still remains that FedEx dumped it's original group of employees in GB. My guess is that ANC is non-union, and has very compliant employees who will take it in the ass without question. That's the way Fred does business. If they truly are FedEx employees they will regret it.