DHL will cooperate with the US Postal Service (USPS) and FedEx in the USA and close about onequarter of its US stations, it was reported last night. An official announcement on the future
strategy of DHL Express in the USA will be made at 14:00 (CET) today.The US transport magazine Air Cargo World reported that DHL has signed a major air freightagreement with USPS, under which FedEx will carry some of DHL’s US volumes. Air Cargo World citedsources “familiar with the agreement” as saying that FedEx will take over some unprofitable airroutes initially and increase the service gradually.
Deutsche Post World Net will also announce the closing of a quarter of DHL’s US stations andthe elimination of hundreds of jobs, it wrote. FedEx and DHL declined to comment and the USPS wasnon-committal about the venture, it said.
FedEx is already the air express partner for USPS, which is likely to be responsible forhandling some of DHL’s US ground distribution, according to observers.
Express and parcels expert Boris Winkelmann, managing director of ITA Logistics (theCEP-Research parent company), said: “If true, this cooperation would appear to make sense. It willenable DHL to downscale its operations and finally cut losses, which shareholders and financialmarkets have long been asking for. At the same time DHL is retaining a nationwide US networkwithout completely putting itself in the hands of its major competitor FedEx in the USA.”
Deutsche Post World Net will hold a press conference in Bonn at 14:00 (CET) today where itwill announce the future strategy for DHL Express in the USA. The business has been heavilyloss-making for the past few years following the acquisition of domestic express company AirborneExpress and despite a €1 billion investment in network expansion and upgrading.
DPWN made a €600 million write-down on the US Express business in its 2007 accounts. DPWNsenior executives have said in recent weeks they will restructure the US business but stressedthere are no plans to pull out of the US market.
DHL has prepared for the US restructuring with several key moves. It recently sealed a dealwith the Teamsters union providing a pay rise in return for more flexible working arrangements.Earlier this year it announced that it planned to shed about 600 jobs this year “in response to thecurrent economic climate and market demands”. DHL Express USA is believed to have about 21,000staff across its US network.
