FDX in talks with DHL

[jinxymaximus]

Originally Posted by tieguy

Can't be good for the yellow and red. The first thing fdx would do is close down many of the dhl facilities.

I'd be curious to see if UPS would file anything under the anti-trust guidelines.

Might not be good for green & purple drivers. Keep the middle man between FDX & the driver and issues like benefits won't affect FDX, it'll have to be resolved through the owner operator. If you noticed all DHL trucks & vans have the co name on the door. Not to mention DHL drivers make alot less than the green & purple. Look what happened to all the $20+ DHL drivers after the Airbourne purchase

[coldworld]

Originally Posted by BrownSuit

For the record . . .

Each area of DHL service is operated by an independently owned Franchise. Take a look at your local mustard van and you'll notice "Operated by" under the driver side window.

The status of the drivers depends on the franchise owner.

Some are actually Teamsters, others are independent contractors ala FedEx Ground. Some are just lowly hourly employees working for money to pay for their gold tooth.

As far as money goes . . .

It is no secret that DHL is loosing money hand over fist. I've mentioned before in another thread that the reason for this is that they are undercutting our rates and those of FedEx to gain DOMESTIC market share.

So what if they cut rates, how does that affect a buy-out?
If they are bought out by another company, that company would be responsible for any pricing agreements in place with regards to rates for a time that is specified in the agreement before either party can cancel it.

Put it in Layman's Terms - DHL makes a deal with Amazon.com (Yes, they were and may still be shipping with DHL to save money like most corporate giants) that they get 50% off their ground shipments. Either Amazon or DHL has 15 days to cancel the agreement.

FedEx comes along, buys DHL. FedEx picks up the obligation to provide service on the ground shipments for 50% off until the 15 days are up until the agreement ends.

Back to the Franchises . . .
DHL owns very little themselves. They own the planes and may own some of the franchises in a few areas. They may also own some buildings and other infrastructure. So if another company purchased DHL they would get very little to show for it.

So what does a company get for purchasing DHL?

• They are stuck with carrier agreements that are losing millions of dollars a week
• They get a very weak infrastructure without any real support
• They get a name that means low cost without the service
• Domestic DHL Operations without any International - There is NO WAY Deutche Post is giving up International operations, it's still making money hand over fist.

So what does this mean for you?

You can stop speculating that anybody is going to buy out DHL. Also, stop speculating that they will go out of business overnight. They are bank rolled by Deutche Post which is funded by the Deutche Bank, the national bank of Germany.

If anything DHL will raise it's rates and stop undercutting left and right to get more business.

P.S. - This information is all public knowledge and readily available out there on the net. If you have any questions about it, go ahead and ask your local DHL Driver. While you're at it, ask him to tuck in his shirt, pull up his pants, put his hat the right way, and polish his gold tooth.

you have a problem with someone with a gold tooth???

[coldworld]

A guess a gold tooth is better than no tooth at all. And a dhl guy(or girl) with no teeth is probably better than the fedex ground guy I saw a couple of years ago with no shirt on and a cig hanging out of his mouth out making deliveries...oh so classy, oh so sexy!