Parcel shipping: DHL, UPS end negotiations for airlift deal
Read the full article at:
http://www.logisticsmgmt.com/article/CA6652698.html?nid=4283&rid=13798057&
Extrait :
"Under the terms of the deal, DHL Express would have worked with UPS for airlift capacity in an effort to reduce its ground infrastructure operations costs. UPS would have provided all airlift services for DHL Express U.S. domestic and international shipments from airport to airport within North America, giving DHL a single airline partner in the U.S., and UPS would have provided main hub package sorting services at UPS’ Lousiville, Kentucky-based hub. The deal was originally supposed to be completed by the end of 2008.
One factor for the deal being shuttered centers around the decline in volume being handled by DHL now that it has left the domestic market.
Before DHL officially left the U.S. market, its air network handled about 1.2 million daily shipments for domestic and international shipments compared to its current levels—for international shipments only—that are around 100,000 per day. It also had roughly 13,000 employees, and will pare that down to 3,000-4,000 U.S. employees after it makes U.S. staff reductions. These job cuts are commensurate with DHL going from 412 stations and 18 ground hubs—when it still had a domestic footprint—to 103 ground stations and no ground hubs with an international-only U.S. presence.
It is likely that DHL’s decrease in volume played a significant role in the deal not coming to fruition."
Read the full article at:
http://www.logisticsmgmt.com/article/CA6652698.html?nid=4283&rid=13798057&
Extrait :
"Under the terms of the deal, DHL Express would have worked with UPS for airlift capacity in an effort to reduce its ground infrastructure operations costs. UPS would have provided all airlift services for DHL Express U.S. domestic and international shipments from airport to airport within North America, giving DHL a single airline partner in the U.S., and UPS would have provided main hub package sorting services at UPS’ Lousiville, Kentucky-based hub. The deal was originally supposed to be completed by the end of 2008.
One factor for the deal being shuttered centers around the decline in volume being handled by DHL now that it has left the domestic market.
Before DHL officially left the U.S. market, its air network handled about 1.2 million daily shipments for domestic and international shipments compared to its current levels—for international shipments only—that are around 100,000 per day. It also had roughly 13,000 employees, and will pare that down to 3,000-4,000 U.S. employees after it makes U.S. staff reductions. These job cuts are commensurate with DHL going from 412 stations and 18 ground hubs—when it still had a domestic footprint—to 103 ground stations and no ground hubs with an international-only U.S. presence.
It is likely that DHL’s decrease in volume played a significant role in the deal not coming to fruition."