UPS/DHL Air Uplift Agreement
#11
If not UPS, then the cost to DHL of continuing to operate a sort center is a large negative. In addition, to run a network of aircraft (albeit to fewer destinations) for only 100,000 items a night would be very inefficient. UPS could easily undercut those costs, and still make a profit, IMO.
#12
Retired Doug herder
Joined APC: Mar 2005
Position: Former DC8 73 Capt DHLAirways/Astar. Retired
Posts: 424
If not UPS, then the cost to DHL of continuing to operate a sort center is a large negative. In addition, to run a network of aircraft (albeit to fewer destinations) for only 100,000 items a night would be very inefficient. UPS could easily undercut those costs, and still make a profit, IMO.
#13
Good Luck Bro...
#14
Retired Doug herder
Joined APC: Mar 2005
Position: Former DC8 73 Capt DHLAirways/Astar. Retired
Posts: 424
Thanks man! I think we're going to need it.
#15
Gets Weekends Off
Thread Starter
Joined APC: Mar 2007
Position: No more APC 4 me. Quit because of moderation.
Posts: 134
Today was terrible news for everybody - ABX, ASTAR, UPS, ILN, etc. Well, everybody except FedEx. Today was a good day for them. Instead of UPS hauling $1 billion dollars worth of DHL freight every year for 10 years, UPS and FedEx will be splitting a much smaller percentage of that volume.
New rumor at the training center in ANC is that FedEx gets the DHL volume in the end after an agreement is signed between FedEx and DHL - just like when FedEx sniped the used MD-11s that UPS was trying to get from DAL.
FWIW.
New rumor at the training center in ANC is that FedEx gets the DHL volume in the end after an agreement is signed between FedEx and DHL - just like when FedEx sniped the used MD-11s that UPS was trying to get from DAL.
FWIW.
#16
Gets Weekends Off
Joined APC: Mar 2006
Posts: 3,333
Today was terrible news for everybody - ABX, ASTAR, UPS, ILN, etc. Well, everybody except FedEx. Today was a good day for them. Instead of UPS hauling $1 billion dollars worth of DHL freight every year for 10 years, UPS and FedEx will be splitting a much smaller percentage of that volume.
New rumor at the training center in ANC is that FedEx gets the DHL volume in the end after an agreement is signed between FedEx and DHL - just like when FedEx sniped the used MD-11s that UPS was trying to get from DAL.
FWIW.
New rumor at the training center in ANC is that FedEx gets the DHL volume in the end after an agreement is signed between FedEx and DHL - just like when FedEx sniped the used MD-11s that UPS was trying to get from DAL.
FWIW.
I disagree. Today was a bad day for DHL ground workers in the US, they are the ones who will bear the brunt of DHL restructuring.
For UPS and Fedex it means they might or might not get to do some part of their flying however both Fedex and UPS have already been snapping up DHL customers so it sort of evens itself out, at least to some degree.
However, it is quite possible that in the end both ABX and Astar will be the biggest winners here because until now DHL wouldn't even consider keeping them as their primary US cargo air network.
Today DHL stated that IF UPS and DHL deal won't get finalized soon (the end of the year) they might just stick with the two airlines they already have and as such it'd be a great win for ABX and Astar and a status quo or possibly a slight growth for Fedex and UPS.
PS. I agree with Roberto's post# 11, UPS could easily undercut the cost of running a sort center and keeping an aircraft fleet and still be able to make some money. We'll see what happens...
DHL Express Says UPS Still 'Preferred' US Partner
November 10, 2008: 03:43 PM EST
CHICAGO -(Dow Jones)- DHL Express said United Parcel Service Inc. (UPS) remains its "preferred" partner to outsource flying parcels in the U.S. but it could fall back on existing providers if no deal emerges by year end.
DHL, a unit of Deutsche Post AG (DPW.XE), confirmed Monday that it plans to exit the U.S. domestic business after spending $10 billion trying to break the near-monopoly of UPS and FedEx Corp. (FDX).
UPS has been negotiating a deal to take on flying domestic parcels for DHL, valued at $10 billion over 10 years. Ed Wolfe at Wolfe Research estimates this could fall to around $100 million a year, given DHL's reduced U.S. presence.
DHL Express Chief Executive John Mullen said during a conference call that UPS remained the "preferred" partner, and expressed confidence that a deal could be reached by year-end.
Mullen said alternatives remained if no UPS deal were reached, likely to involve its existing air service providers, ABX Air and Astar.
DHL will continue to provide international service into the U.S. for its global package business.
"Outside the U.S., I don't see why we should lose any revenue," said Mullen. However, he conceded the company had lost some international business as a result of the uncertainty surrounding its U.S. operation.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135; [email protected]
Last edited by ⌐ AV8OR WANNABE; 11-10-2008 at 04:01 PM.
#17
Banned
Joined APC: Sep 2008
Position: MD-11 CA
Posts: 174
God what a giant cluster#$%& from the DHL idiots today. They closed down the entire US domestic operation and they still do not have a plan in place.
I've never seen a more pis55 poor operation than DHL USA. Also, I think the idiot politicians should sleep soundly tonight knowing they screwed tens of thousands of US families. Idiots!
I've never seen a more pis55 poor operation than DHL USA. Also, I think the idiot politicians should sleep soundly tonight knowing they screwed tens of thousands of US families. Idiots!
#18
Retired Doug herder
Joined APC: Mar 2005
Position: Former DC8 73 Capt DHLAirways/Astar. Retired
Posts: 424
God what a giant cluster#$%& from the DHL idiots today. They closed down the entire US domestic operation and they still do not have a plan in place.
I've never seen a more pis55 poor operation than DHL USA. Also, I think the idiot politicians should sleep soundly tonight knowing they screwed tens of thousands of US families. Idiots!
I've never seen a more pis55 poor operation than DHL USA. Also, I think the idiot politicians should sleep soundly tonight knowing they screwed tens of thousands of US families. Idiots!
#19
Banned
Joined APC: Sep 2008
Position: MD-11 CA
Posts: 174
I wish you guys the best.
I honestly cannot believe what I am reading after getting home from a trip today.
Pulling out of the USA?? Laying off thousands?? And still no IDEA how they are going to move the international freight around the USA. What a joke.
#20
Don't mistake marketing errors for evil intent, or course reversals for incompetence.
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