dhl covering their asses...not doing much



NEW YORK -(Dow Jones)- DHL, the package delivery arm of Deutsche Post AG (DPW.XE), has said it doesn't want to chase U.S. market share from United Parcel Service Inc. (UPS) and FedEx Corp. (FDX), signaling a reining in of the company's ambitions, the Financial Times reports in an article on its Web site Tuesday.

According to the FT, John Mullen, joint chief executive of DHL Express, characterized the company's plans in the U.S. as "realistic and modest," insisting it wasn't "setting out to create another UPS or FedEx."

His comments, at a Bear Stearns investor conference in New York, eased concern that DHL might spark a price war in the U.S. package delivery market after two years of heavy investment.

Mullen said the company's most urgent objective in the U.S. was to improve service quality, which he described as having been "horrendous" last year. Once service improved, DHL would seek to increase prices closer to those of UPS and FedEx rather than cut them, he said, according to the FT.

"We're not driven by market share gains," Mullen said. "We want to get more value out of the volume we have rather than chase more volume."

Mullen said the company would lose up to EUR300 million this year but aimed to break even in the fourth quarter of 2006. DHL had no plans for further investment in the U.S., he said, according to the FT.

has anyone read this article. It shows that dhl has basically spuddered out. good for them, I am getting very sick of people talking about seeing yellow vans everywhere and how they are capturing so much volume. You idiots, of course there might be more vans they had all of the airborne vans painted yellow....and many of the drivers out there are part-time, running around with 10 packages in their trucks. Well Im working on converting a customer who has shipped via airborne for a long time, well there goes another account to us!


All the advertising in the world cannot hurt Brown. They came into the market thinking if they advertise "they will come" some did, and came back.

The most important thing was UPS people and service which killed them.