You’ll still see the yellow and red striped trucks driving around, this only affects the DHL packages from airport to airport and not DHL freight only packages.
This is surprising news because ABX had just announced a contract renewal was going to be approved later this year. I bet this is really a surprise to the 7,000 people in the Wilmington, Ohio hub and sorting facility, especially the 1500 that are slated for immediate termination.
This is worth a billion dollars a year for UPS, that said it could easily handle the new traffic with existing equipment. UPS is planning on the delivery of seven new aircraft this year and another five in 2009. While they are still planning on the billion dollar expansion of its Worldport in Louisville, KY
DHL is probably on its way out of the US market, continually osing market share to FEDEX and UPS.Besides this deal, they are cutting their other US network facilities by 30 percent.
DHL is reporting, the “uncertain economic situation in the US.” for the reason for the cutting of its delivery and pickup routes by 17% and the cutting back by 30% at other sorting facilities.
Even though the direct reasons given were not fuel related, the part about the uncertain economic situation is definitely related to the soaring price of fuel which is affecting the entire transportation industry, trucking and airlines are taking nosedives because fuel is having huge repercussions throughout both industries. The package shipping industry is going to be affected just like everything else.
Carriers have to raise prices to cover their costs and consumers are going to be more conscious about shipping a package overnight. Personally, I’ve converted to 2nd day air if I think one day isn’t going to make that much difference. Many times I have to do overnight to beat a deadline, but with a little planning I can ship something 2nd day to save about half the money of overnight.
