UPS to deliver DHL packages??!!

Discussion in 'UPS Discussions' started by pkgman001, Sep 13, 2008.

  1. pkgman001

    pkgman001 New Member

    This came out yesterday-sounds like UPS may be handling ALL DHL packages, not just air, and that DHL is in talks to deliver 50% of DHL's packages in the US!!!

    Parcel shipping: FT report indicates DHL may need to delay US restructuring plan by up to eight weeks
    Jeff Berman, Group News Editor -- Logistics Management, 9/12/2008
    BONN, Germany—A report published by the Financial Times Deutschland indicated that Deutsche Post World Net (DPWN), the parent company of express and logistics services provider DHL, will have to delay its restructuring schedule for DHL Express USA by approximately eight weeks.

    DPWN announced its restructuring plan on May 28. It is comprised of:

    a ten-year, $10 billion contract with UPS for airlift capacity to reduce its ground infrastructure operations costs (this deal is not yet completed, and the House Committee on the Judiciary held a hearing on it this week focused on competition in the package industry; the House Committee on Transportation and Infrastructure is holding a separate hearing on this matter on Tuesday, September 16);

    rationalizing infrastructure by 34 percent by closing and consolidating US stations in low density and remote areas, low density areas in multiple station locations, and nearby stations in multiple station locations;

    reducing pickup and linehaul delivery routes by 17 and 18 percent, respectively; and

    expanding DHL’s partnership with the United States Postal Service, which will enable DHL to continue delivering to more rural parts of the US, among others.

    The FT report indicated that DHL’s US operations, which have long been facing an uphill battle for market share competing against industry titans UPS and FedEx, “have been running worse than expected over the last few months” which is delaying negotiations with UPS. The UPS-DHL contract was originally expected to be finalized by August, industry analysts are suggesting it may take at least another two months, with UPS to commence handling DHL’s airlift for express US domestic and international shipments from airport-to-airport within North America.

    One of the main reasons for the contract being delayed, according to the FT, was that DPWN CEO Frank Appel now wants to “reduce DHL’s delivery capacity [in the US] by 50 percent instead of a third as initially intended. As a result UPS might cover part of DHL’s ground deliveries as well.”

    An industry source told LM that there have been rumors that a major announcement will be coming from DPWN next week that will announce downsizings at DHL Express USA. The source added that although DHL has outsourced deliveries to the USPS through DHL@home since 1999—roughly a $300 million annually operation geared for business-to-business residence shippers in which shipments are picked up by DHL and delivered directly to consignees by the local post office—“it may have figured out it can get better service and a lower price from UPS Ground than the USPS.

    “DHL needs to pick up the pace at which it is right-sizing US operations,” said the source. “They have to rationalize their expenses with their income far more rapidly than they have been doing it [in his Judiciary Committee testimony this week, DHL Express CEO John Mullen said DHL is suffering operating losses of about $5 million per day], and they might have figured out that it might be better to outsource deliveries to UPS rather than the USPS because of better cost and service.”

    “Both parties are committed to reaching an agreement,” a DHL spokesperson told LM. “Discussions between DHL and UPS are ongoing and details about the proposed arrangements and the timing of a final agreement are still subject to negotiation and confidentiality requirements. We regret that we are not in a position to provide more details at this time.”
  2. looper804

    looper804 Is it time to go home yet

    Even more ammo to use in winning new customers.
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Sales leads?!
  4. looper804

    looper804 Is it time to go home yet

    Did I have to say it.
  5. 705red

    705red Browncafe Steward

    Yeah and maybe we all can have tp60 trailers to drag behind our already full 10 and 12 cubes!
  6. looper804

    looper804 Is it time to go home yet

    Don't think I have ever seen a tp60 trailer,how much does it hold and who gets to have 1?
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Our mall driver has one. They usually load a mall bulk stop or two in there. Shoe Dept usually fills it once a week.

    During Peak they will park it in the mall parking lot and let the helper deliver out of it.
  8. looper804

    looper804 Is it time to go home yet

    Do you get additional pay for using it,like pulling a double feeder?
  9. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.


    Picture a U-Haul trailer that you would tow behind your car.
  10. looper804

    looper804 Is it time to go home yet

    seems to me you should get a bonus of some sort for pulling it.It eliminates 1 truck and 1 driver correct?
  11. Brown287

    Brown287 Im not the Mail Man!

    First you do get extra pay, out here in CA. you get 15 cents more an hour, and second it increases your plan day quite substantially. Its roughly like get 15 minutes per hook up and unhook. I pull a pup out to a satelite location on a goat farm for two remoted routes. I just park it and they unload and load their pickups them selves. Its like pulling a fully loaded 6 cube worth of packages. Not to mention you get an earlier start due to leaving early and you never have to help because you are basically maried to this trailor. All and all its not that bad.
  12. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Our mall driver does not get extra pay.
  13. stevetheupsguy

    stevetheupsguy sʇǝʌǝʇɥǝndsƃnʎ

    Yes! 10 cents extra per hour which also amounts to 15 cents extra per hour o/t. And I check my paystub weekly to make sure it's in there.
  14. Just Lurking

    Just Lurking Member

    our area get an extra nickel per hour.
  15. Brown287

    Brown287 Im not the Mail Man!

    You need to check with you local contract but out here all it takes is magement contacting pay-roll and changing your pay code. Look your not gonna get rich off an extra 15 cents an hour but its the increase in your plan day that helps, and if your mall routes are anything like are mall routes their time studys need any help they can get.
  16. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Steve, what happens on the days that you don't pull the trailer? Who keeps track of the days that you do and don't pull the trailer? I ask this because our mall driver only uses the trailer when his pkg car blows out, which is usually Wednesday and whenever Shoe Dept gets their big shipments.

    BTW, that is an excellent load. I bet that tote box stays just the way it is until you get to your first stop.
  17. stevetheupsguy

    stevetheupsguy sʇǝʌǝʇɥǝndsƃnʎ

    I pull the trailer everyday, upstate. I used to have to count on MGMT putting my trailer pay in for me. That was hit or miss, depending on if they remembered. Still worked out though. I just coerced them into buying me lunch a couple times that week, LOL. Nowadays we put our time for extra equipment in the diad under extra work, big arrow down twice and I for extra equip. There's actually a really good time allowance for hooking and unhooking. There are 3 drivers in my center that pull a tp60 daily, and they're always loaded to the hilt.

    BLACKBOX Life is a Highway...

  19. brownmonster

    brownmonster Man of Great Wisdom

    Where do you find the time for all the pictures of you and your truck. Quit liking your job, you're making the rest of us look bad.
  20. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Be careful, you might get a big head: