FDX in talks with DHL

BLACKBOX · 01-25-2008, 06:51 PM

Wow! What is that about? DHL possibly entering a buyout of domestic ops to FDX or possible partnership?? This can't be good for us domestically and internationally.

fredly00 · 01-25-2008, 07:12 PM

I was on the internal FedEx Site today, and there was just one comment about this stating "FedEx does not discuss current blah blah blah...."

So something might be up.

tieguy · 01-25-2008, 07:13 PM

Quote:

Originally Posted by BLACKBOX

Wow! What is that about? DHL possibly entering a buyout of domestic ops to FDX or possible partnership?? This can't be good for us domestically and internationally.

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.

RockyRogue · 01-25-2008, 08:22 PM

Quote:

Originally Posted by BLACKBOX

DHL possibly entering a buyout of domestic ops to FDX or possible partnership??

Not surprised. I've been kinda waiting for this to be perfectly honest. I'm not an economist or anything but this might be a good match.

Quote:

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.

Agreed. I wonder if UPS might be able to pick up some surplus real-estate with modern technology, etc. And if this kinda deal did happen, I'd be levelled if UPS didn't cry FOUL and file something under anti-trust laws.

ikoi62 · 01-25-2008, 08:52 PM

maybe not

http://www.bizjournals.com/memphis/s...1/daily22.html

brownmonster · 01-25-2008, 10:11 PM

UPS could get aggressive and try to play this for more business. Or just sit back and watch like it was 1985 and RPS was a wannabe.

Zigzag99 · 01-26-2008, 04:39 AM

I heard the same thing. only problem DHL is not a very well run company here in the U.S they have alot of problems as do Fedex ground. I cant imagine Fed ex shareholders wanting anything to do with DHL do to the 877 mill loss they reported for 2007, but we will see, I think this will happen in some form or another. See when your number one like UPS this shows the level companies will go to just to take us down. 100 years baby! Fed ex seems to think that the more companies they buy the more they can compete with us. I would look for UPS to buy TNT in the future they would be a great fit for us.

ImpactedTSG · 01-26-2008, 05:27 AM

Quote:

Originally Posted by tieguy

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

Waaaaaahhhh Competition Waaaaahhhhhh!!!!

trplnkl · 01-26-2008, 07:37 AM

Quote:

Originally Posted by ImpactedTSG

Waaaaaahhhh Competition Waaaaahhhhhh!!!!

Hey, If WE have to play by the rules so does BrandEX.

trplnkl · 01-26-2008, 07:39 AM

Quote:

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.

Yeah me too, or it wouldn't surprise me if the Teamsters made a fuss under the anti-trust guidelines.

ImpactedTSG · 01-26-2008, 09:50 AM

Quote:

Originally Posted by trplnkl

Hey, If WE have to play by the rules so does BrandEX.

What rules? Free enterprise? If FedEX wants to buy out DHL why shouldn't they be able to? If UPS was trying to buy them you would be cheering about it.

fredly00 · 01-26-2008, 12:08 PM

If I were willing to bet, and I'm not the betting type
I'd wager that DHL will be leasing or whatever space
on our planes.
I wouldn't see a merger.

BLACKBOX · 01-26-2008, 12:31 PM

I was reading an article where FDX is really not interested in DHL domestic but if they could work out a deal to possibly be the US arm for their Europe and Asia traffic; the package count for Air,Ground,Freight and Home Delivery will be comperable to what we average on a yearly basis.

01-26-2008, 03:20 PM

Quote:

Originally Posted by BLACKBOX

I was reading an article where FDX is really not interested in DHL domestic but if they could work out a deal to possibly be the US arm for their Europe and Asia traffic; the package count for Air,Ground,Freight and Home Delivery will be comperable to what we average on a yearly basis.

What is DHL's labor structure? I know at least some of their drivers are teamsters. Would the teamsters back this merger in order to get their foot in the door at Fedex?

moreluck · 01-26-2008, 03:47 PM

Memphis Business Journal

A DHL spokesman says parent company _Deutsche Post World Net_
has no plans to sell its U.S. Express delivery service to its
rival _FedEx Corp._

tieguy · 01-26-2008, 04:01 PM

Quote:

Originally Posted by ImpactedTSG

What rules? Free enterprise? If FedEX wants to buy out DHL why shouldn't they be able to? If UPS was trying to buy them you would be cheering about it.

Actually I would be wondering the same thing about fdx taking anti trust action

1timepu · 01-26-2008, 07:36 PM

Maybe UPS could enter, and drive up the price to buy them.....no I know there is rules regarding this but it would be hard to prove if done right

RockyRogue · 01-26-2008, 07:48 PM

Quote:

Originally Posted by 1timepu

Maybe UPS could enter, and drive up the price to buy them.....no I know there is rules regarding this but it would be hard to prove if done right

First, that's unethical. Second, I can't see UPS taking a step it doesn't intend to see through. UPS doesn't do anything without a good reason. -Rocky

coldworld · 01-27-2008, 03:36 PM

wow!!!At first I really didnt know what to think about this but then I thought about it for a minute and decided on the following. If this happen, it says that it would just be the us unit. How many customers would come back to ups if this did go through, you know customers who were ours and just switched to dhl for the prices? If fedex did take over their customers the prices would probably go up. I believe fedex is really at a turning point here. The express unit is not what it was 10 years ago, and the freight company side of things are taking a hit from ups freight and yellow. The ground side is growing but not like it was when they were first starting out. All the recent problems with the lawsuits and the govt. along with the flat sales of kinkos is really starting to get to them imo. Looks like ups has really put the pressure on dhl here. that is good in some aspects, but as someone else said, ups has been known to unfairly target competition. There is no way that an anti trust suit would even apply here, think about it. With he new ceo. maybe ups could go one up on fedex and purchase something like TNT, EXEL or DHL international...its really interesting to think about. Internationally, ups needs to be as big as player as dhl, this will help domestic volume as well. I would like to be a fly on the wall at ups corpotate on monday where you know this topic will be discussed. One more thing, if this deal did go through, they would really only be buying the posibility to service dhl current customers. theres no promise that 100% of their customers would stick around to see them bought out. This is interesting.Then theres the teamster aspect of the whole thing also...hmmm. This could be the biggest news of 2008...what do you think ups would do to counteract this? I wonder how much dhl has in market share as of now???

dragracer66 · 01-27-2008, 06:02 PM

Quote:

Originally Posted by BLACKBOX

Wow! What is that about? DHL possibly entering a buyout of domestic ops to FDX or possible partnership?? This can't be good for us domestically and internationally.

Yea...what would Fed Ex do with those 9 extra package's they would get from DHL!!!! I had a DHL guy come to my house last week to deliver something my wife ordered from Dell and he was there at 9:45 am and his truck was empty and might have had 15 pieces on on it. I had to laugh at him, he knows I work for Parcel and he wasn't to happy that I was making fun of him, he told me next time he was not going to leave me anything he was going to send it back!!! Oh Boo Hoo!!!! I never see the same driver twice anyway in my neighborhood. That company is a joke!!!!

MrFedEx · 01-27-2008, 06:20 PM

The latest rumor I've heard is that DHL would start handling our intra- Europe business and that FedEx would take over some or all of DHL's Europe to US packages. That makes some sense, because FedEx would not have to deal with DHL's domestic nightmare, and FedEx could save money by not operating in an area that has been very marginal in terms of profitability.

At this point, it's all rumor and both companies are in the plausible denial mode. I guess we'll have to wait and see what happens.