FDX in talks with DHL

[MrFedEx]

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.

 

[Coldworld]

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! friended 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.

tnt is a HUGE company overseas, and very diverse...small pkg, mail, logistics, etc, etc. Most people have No idea how large of purchase this would be for ups if this eventually happen..it would be like a bomb dropping in the shipping world.

 

[FAVREFAN]

As of Friday, 01/25/2008, the "rumors" are that DHL might sell a "portion" of their US operations. They will not sell the entire unit.....from MSN news regarding the rumors........... A DHL spokesman denied any plans by parent company Deutsche Post to sell its U.S. delivery service.
"There is no question about our exiting the U.S. business, a withdrawal can be completely ruled out," DHL spokesman Jonathan Baker told Memphis Business Journal.
Many analysts predict profitability for DHL in the US by late 2009. A sale of the worst portions of their US presence could quicken that profitability.

 

[ups79]

As of Friday, 01/25/2008, the "rumors" are that DHL might sell a "portion" of their US operations. They will not sell the entire unit.....from MSN news regarding the rumors........... A DHL spokesman denied any plans by parent company Deutsche Post to sell its U.S. delivery service.
"There is no question about our exiting the U.S. business, a withdrawal can be completely ruled out," DHL spokesman Jonathan Baker told Memphis Business Journal.
Many analysts predict profitability for DHL in the US by late 2009. A sale of the worst portions of their US presence could quicken that profitability.

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?

 

[1timepu]

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

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, besides what does UPS get for just standing pat?? more competition. 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

 

[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]

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!

 

[SmithBarney]

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]

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?

 

[SmithBarney]

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

 

[RockyRogue]

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."

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]

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]

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]

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 S 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]

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]

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