FlightPhoenix

Is the DHL/UPS deal dead? Sounds like they may hope to have an agreement by July and are still in negotiations. For the ABX/ASTAR guys I hope the deal is dead.

UPSFO4LIFE

Heard last week the deal is still being negotiated. International volume is what I understand to be at the center of attention since most of the domestic stuff is already split between UPS and Fed.

FR8K9

DHL is also negotiating with FedEx, ASTAR, ABX and the USPS now too, so who knows what deal, if any, is going to happen.

They also could be negotiating with numerous international carriers too to carry their volume in existing belly/cargo space.

UPS has as good a chance as any, I guess.

⌐ AV8OR WANNABE

Heard from my Fdx buddy they might be getting what's left of the deal and if so they'll probably announce it in early January. Not signed yet but 'almost there' is what he heard - he is a sim tech at purple and knows some of their business folks. Who knows...

UPSFO4LIFE

I am hearing the exact same thing here. This leads me to believe that nobody know what is going on. We will all find out when it is announced I guess.

1800 RVR

Yeah, I heard that Santa will now work year round delivering what is left. Guys, no one but those that are in negotiations know what's going on. I believe the FDX sim tech as much as one of our ACP's. This topic has been beaten to death. Just remember that some aren't going to have a very merry Christmas this year. My humble opinion: just let this go until that day when something is announced - good or bad.

hvydriver

FWIW, that exclusivity agreement between UPS and DHL is supposed to last till the end of '08. It would be big bucks if Brown caught them dealing with anyone else before then. (I'm including us, ABX, FedEx in this of course.)

⌐ AV8OR WANNABE

You’re absolutely correct and I do realize no one knows for sure. Having said that, my friend was the same person who told me about FDX negotiating a purchase of DHL's US division in September of 2007; in other words 3 months before the negotiation came to light in the newspapers...

Warning - old news!!!
FedEx in talks to buy DHL stake, report says
By Steve Gelsi, MarketWatch
4:23 p.m. EST Jan. 25, 2008
NEW YORK (MarketWatch) -- FedEx reportedly is in talks to buy all or part of Deutsche Post's DHL delivery business in the U.S. in a deal that would help it challenge larger rival UPS.
Full story


(of course, only a few months later the DHL/UPS deal was announced instead... )

To clarify things –my friend is hearing they’re looking at 3 different scenarios and that’s why it’s taking so long.

1) FDX would buy what’s left of the DHL structure in the US (in other words what FDX & DHL were negotiating in the Winter of 2007 – see the link above).

Apparently this is the scenario DHL wants the most whereas FDX is not that interested anymore (in the Winter of 2007 the roles were reversed where FDX wanted to buy and DHL didn’t want to sell and preferred an air shipment agreement instead).

2) FDX would carry all remaining DHL air shipments in the US (in other words, the same agreement FDX & UPS is negotiating right now) but the sorting and the ground transportation remain the ‘problem areas’ in the negotiation (he didn’t specify).

3) Similar to scenario 2 however the air transportation within the US would be split between FDX and one or two of previous DHL carriers (he mentioned Polar as one option; I think DHL owns a chunk of Polar?)

I'm bringing this up just to point out that FDX is pursuing this agreement very aggressively despite what some might think...



In the end, I bet you there will be a development no one even expected…

⌐ AV8OR WANNABE

I totally agree, unfortunately that'll apply to many people out there this Christmas season...

⌐ AV8OR WANNABE

DHL still expects UPS deal

Tuesday, January 06, 2009
HUFFENBERGER Staff Writer

Although both DHL and United Parcel Service (UPS) had hoped to reach a deal before the new year, there’s no cause to draw a conclusion from the fact the hoped-for time frame has elapsed, a DHL spokesman said Monday.

“We continue to talk to them. We expect to be able to reach an agreement,” said Jonathan Baker, director of corporate communications for the U.S. unit of DHL Express Global.

While DHL will exit the U.S. domestic shipping market on Jan. 30, the company will continue its international express shipping to and from the United States. It is this international air freight of DHL shipments that is the subject of the ongoing negotiations between DHL and UPS. DHL wants UPS to be the air carrier for DHL’s international shipments to and from the United States.

Local and state officials have expressed hope the Wilmington Air Park and Wilmington-based airlines, rather than UPS aircraft, could be utilized for DHL’s international operations in the United States. If that were to happen, it would mean hundreds — but not thousands — of air park based jobs could be saved.

However, DHL has indicated a strong preference to have competitor UPS handle the international component of its U.S. business.

Baker was asked Monday whether there is any reason to think DHL’s strong preference for UPS has changed. He replied there is no change in status and no change in approach.