No end in sight for DHL & UPS
After announcing plans in May 2008 to slash US operations and hire UPS to take over its US cargo sorting and hauling, DHL and UPS are still in contract negotiations. DHL, which is slashing its U.S. operations after announcing plans in May 2008 to hire United Parcel Service to take over its U.S. cargo sorting and hauling, is still in contract negotiations with UPS.
The changes in DHL’s U.S. strategy since then, plus the economic downturn that has reduced the volume of shipments, have complicated the talks, spokesmen for DHL and UPS said Monday, Jan. 26. Spokesmen for the companies declined to discuss details or predict when or whether they will be concluded successfully.
German-owned DHL’s efforts to cut its $1 billion-a-year losses in U.S.
operations has already resulted in the elimination of thousands of jobs at its U.S. cargo hub at Wilmington, the region’s largest employer. Ohio officials have estimated that 8,000 direct, and an additional 2,000 indirect, jobs will be lost because of DHL’s cost-cutting and planned shift of work at UPS in Louisville, Ky., if a contract can be reached.
The fate of a major piece of DHL’s Wilmington operation, a facility that handles DHL packages between international and U.S. destinations, still is to be decided. Hundreds of jobs are at stake.
That operation hinges on the outcome of DHL’s talks with UPS, DHL spokesman Jonathan Baker said.
In May 2008, ABX Air had 10,000 employees globally, including 7,000 in Wilmington. ABX now employs 4,200 globally, including 3,500 in Wilmington.
John Graber, president of ABX Air Inc. which operates the hub for DHL and flies DHL cargo from there nationally, said Monday he anticipates more layoffs in the next 30 days as DHL changes the scope of its international operation.
DHL has said it will reduce its U.S. service to international-only deliveries after this week.
