The US Postal Service (USPS) has welcomed DHL’s decision to use it more for final-mile deliveries,but pilots at DHL airline partner ASTAR Air Cargo are protesting at DHL’s planned switch to UPS for
US domestic airlift.USPS said that the expanded agreement with DHL Express will build on the existing arrangementthrough a combination of the Postal Service’s Priority Mail and Parcel Select products. Since 2003,the Postal Service has provided last-mile delivery for DHL in over 20,000 ZIP Codes nationwidethrough its Parcel Select service. This expansion makes USPS the exclusive provider of deliveryservice to DHL for 3,600 of the nation’s 46,000 ZIP Codes through use of Priority Mail and ParcelSelect service.
The USPS Parcel Select service is a reliable, low cost way for businesses to ship packages toresidential customers, and is also used by FedEx and UPS who hand over parcels to USPS for finaldelivery. Priority Mail is an expedited mail service with 2 to 3 day delivery to everyaddress in the United States — including PO Boxes and military addresses.
USPS also already partners with DHL for the DHL@home service, designed forbusiness-to-residence shippers who desire a secure, cost-effective shipping solution. Shipments arepicked up by DHL, handed over to USPS and delivered the last-mile to customers at their home,business or Post Office Box by the local Post Office using Parcel Select. Standard delivery is 2 to4 days, while deferred delivery is 2 to 7 business days.
“I am pleased DHL has chosen to expand its existing relationship with the Postal Service,giving us the opportunity to deliver more of their packages the last-mile,” said Jim Cochrane,acting vice president of ground packages at USPS. “This new volume is a natural extension of thedelivery service we already provide to DHL and further recognizes the inherent value of thedelivery reach of the Postal Service. Last-mile delivery remains a fundamental strength of thePostal Service.”
Meanwhile, ASTAR Air Cargo crewmembers, represented by the Air Line Pilots Association(ALPA), said they intended to investigate the decision-making process at DHL, which is leading tothe “absurd” result of a company depending on its chief competitor UPS for the most crucial aspectsof its express operation. ASTAR currently flies about 50% of DHL’s nightly volumes from its US airhub at Wilmington, according to the union.
The announcement of the cooperation with UPS comes less than three months after ALPA andASTAR agreed to a new collective bargaining agreement with job security commitments from ASTAR thatwere approved and backed by DHL. The union also intends to inquire into why the details of DHL’sdiscussions with UPS apparently were intentionally kept from both ASTAR and ALPA during thenegotiations between these parties.
ALPA said it has significant concerns that this course of conduct is completely inconsistentwith DHL’s legal responsibilities and will seek to have this matter investigated by appropriategovernment authorities. “ALPA will do everything necessary to make sure that all aspects of thesecommitments are honoured by both ASTAR and DHL,” said Captain Pat Walsh, chairman of the ASTARpilots’ union.
