UpstateNYUPSer(Ret)
Well-Known Member
I am sitting here watching the Yankees/Mets and can't help laughing at the big DHL banners in the bullpen at Shea Stadium. I wonder if we will be pickup those up on an ARS after the season is over.
A sign that DHL is really in trouble
- Thread starter looper804
- Start date
Coldworld
60 months and counting
I really think ups is banking on much of this dhl volume, especially right now with the economy not doing very well. I really doubt dhl is going anywhere, especially in the metro areas. They are loosing strength in the country, but knowing them, they are going to hit our customers hard in the large cities. What do you all think about ups flying their cargo, will this kick ups in the butt later? There was a pcm this last week about ups going hard after usps volume, and how ups is making deals with post office shippers. Do any of you notice the large amounts of basic pkgs. Seems like if ups can start kicking down fedex's door things could start rolling into high gear, economy or not.
looper804
Is it time to go home yet
Do you work in a big metro area? I do and shippers are definetly switching to UPS.As for flying their cargo,its a billion dollars a year just to move their packages.Were not delivering them,just filling up space on our planes.I read a news report that DHL is closing 1/3 of their facilities,17% of their routes will be eliminated and no more planes will be flying.If that shows a company that is gaining ground then i don't know anything about running a business.
UpstateNYUPSer(Ret)
Well-Known Member
From what I have been told, we are simply loading DHL air cans on our planes and they are then handled by DHL employees at the destination hub.
I personally despise the "Basic" service as the "service" provided sucks, but it is a cost-effective alternative if time is not of the essence and I only see this volume growing. I have actually had Basic pkgs that I have driven by the address to get to the P.O. so that they could then drive out to the address that I had just driven by to deliver the pkg the following day.
DHL is a very small player in our local market and, as such, we don't expect much of a volume bump locally.
Revenue is revenue and we shouldn't be picky of the source of this revenue.
I personally despise the "Basic" service as the "service" provided sucks, but it is a cost-effective alternative if time is not of the essence and I only see this volume growing. I have actually had Basic pkgs that I have driven by the address to get to the P.O. so that they could then drive out to the address that I had just driven by to deliver the pkg the following day.
DHL is a very small player in our local market and, as such, we don't expect much of a volume bump locally.
Revenue is revenue and we shouldn't be picky of the source of this revenue.
Ask yourself if you want UPS to have an extra billion a year, or FedEx, because if we don't do it someone else will.
Coldworld
60 months and counting
Calm down you guys...I am not pro dhl, personally I want them out of business. All I am asking is do you think that ups flying their cargo is going to give them a chance to save money, then use that money later down the road to hit our volume in the metro areas? I do know that they are loosing steam in the sticks, but as someone else asked, I dont work in a merto area. I am surprised that we are gaining on them in these areas since their prices seem to be better and some customers are really focused on the lowest price right now, even though the service sucks. And yes mike, an extra 10 billion could come in handy down the road when ups buys out the dhl worldwide part of duetche post. Personally, it was a big shocker that fedex didnt get this account since they seem to be able to get every other large partnership..ie the usps.
helenofcalifornia
Well-Known Member
It's like a previous poster said, Fedex always wants 100% of everything or they won't take anything. I imagine they wanted DHL's metro air deliveries and DHL isn't about to give up the one area that makes money for them. UPS, for once, was looking at the potential profit and bottom line. I think they also probably had a lot of meetings weighing the pros and cons before they did this. At least, I hope they did.
looper804
Is it time to go home yet
The more cargo area you fill on a plane t6he more $$$ you make.If we have the room then it should be utilized.I was told that it costs $10,000.00 just to get our plane in the air(I am assumimg this is the big planes not the little jets) How many of these do we fly a day? We have roughly 500 aircraft in our fleet so i am guessing its a lot.Filling our space with their stuff makes sense.They still have to get it and deliver it.Cutting all those routes should make it that much harder for them to get it done.Just my opinion.
mikestrek
Well-Known Member
On Thursday at our PCM We were told that DHL is history in Central Ca and that we should scoop up some sales leads. They stoped all ground service. I don't know if you guys know it but were now moving DHL ground packages through our air service. Yes, DHL is history. It's just a matter of time to go nationwide.
Coldworld
60 months and counting
Its interesting, some are saying dhl will be no more in 5 years, and others are saying that they will cut back in some areas but its business as usual. Whats the real story, they are international giants, so they can leverage that profit with service here.
S
speeddemon
Guest
Thier centers are closing around our area. We are picking up a bunch of next day air. So far, 85k a year in additional revenue for our center. And thats great, considering we are a debt center.
UpstateNYUPSer(Ret)
Well-Known Member
From what I heard, they had 2 guys in a room and they did "Odds, evens" with Odds being help DHL and Evens being tell DHL to go back to Germany. Odds won.
So that's how the 2 person contract meetings I heard about go?
barnyard
KTM rider
We have quite a few optical labs in this area and have been competing with Fedex and DHL for years. Our salespeople are so busy trying to sign contracts with some of those, that other leads are being ignored. Some have tried us in the past, but went back to DHL over price. They know our service, so it's just a matter of selling our price.
Our semi rural center has the potential of adding over 1000 small NDA's per day. As a plus, the routes that these customers are on, are all served by guys that try to deliver high levels of service. That helps make it an easier sell.
TB
Our semi rural center has the potential of adding over 1000 small NDA's per day. As a plus, the routes that these customers are on, are all served by guys that try to deliver high levels of service. That helps make it an easier sell.
TB
helenofcalifornia
Well-Known Member
And then all the NDA would be delivered by non-union workers?
DHL is not in trouble by any sense of the word. They still are the LARGEST shipping company worldwide. What the issue really is is that they did not want to continue to have massive losses, even though they were planned, especially with the current economic climate. The dollar is in the toilet etc.
We now will deliver those DHL packages that come to the USA from overseas.
DHL will still earn a profit, but we will just be finalizing their shipping process.
In this economy one thing is for sure and that is we are blessed with this work, which should add a billion to our gross or more.
UPS cannot afford DHL by the way. Had DHL offered good money for their drivers etc, you may have seen a different outcome with this story.
I used to watch the local DHL gal bring her kid with her on her route all day.
We now will deliver those DHL packages that come to the USA from overseas.
DHL will still earn a profit, but we will just be finalizing their shipping process.
In this economy one thing is for sure and that is we are blessed with this work, which should add a billion to our gross or more.
UPS cannot afford DHL by the way. Had DHL offered good money for their drivers etc, you may have seen a different outcome with this story.
I used to watch the local DHL gal bring her kid with her on her route all day.
Coldworld
60 months and counting
Are you sure of this, this is the first time Ive heard of ups delivering their inbound international?
That article outlines the UPS airlift agreement, but not the actual delivering of DHL international packages, unless it was in the video, it didn't load for me.
