Tag: DHL

DHL Express Global CEO testifies before House Committee on the judiciary

DHL Express Global CEO John Mullen testified before the House Committee on the Judiciary regarding the company’s potential contract with UPS for domestic air lift and related services. The proposed agreement with UPS is part of DHL Express’ U.S. restructuring aimed at enabling the company to remain a viable competitor in the U.S. market.

During the Hearing, Mullen stated that the pending deal with UPS does not violate antitrust laws and does not decrease competition in any way. He added that the contract is a pro-competitive vendor-services agreement for air and related services only. “DHL would retain complete control over every customer-facing aspect of the business and remain an independent and viable competitor in the U.S. air express delivery sector retaining full control over our ground operations, as we do today,” Mullen stated.

The potential execution of this pending agreement will affect DHL employees, as well as those of DHL’s current air service vendors, ABX Air and ASTAR Air Cargo at the Wilmington Air Park. DHL is sensitive to this situation and therefore has agreed to provide a generous USD 260 million severance, retention and other benefits, USD 225 million of this voluntarily, to impacted DHL, ABX and ASTAR employees.

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DHL seeking Asia expansion

DHL is keen to acquire local rivals or form joint ventures in an effort to double its domestic express business in Asia to tap growing demand for intra-country services.

Dan McHugh, Chief Executive of DHL Express Asia Pacific, said the group plans to lift the revenue contribution from its domestic arm to as much as 16 per cent of the overall total from 8 per cent now, within three to four years.

Demand for rapid delivery of documents and package services in Asia has long been about exporting goods to other countries, it has changed in recent years after a rise in domestic spending prompted a greater need for local services.

The market, however, is crowded and dominated by small local players, who often offer much cheaper services than their international rivals. Still, DHL and other global carriers including FedEx and UPS are eager to take part in the fast-expanding industry, which is ex­pected to grow more than 20 per cent in the next five years.

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DHL new express service begins in the Caribbean and Bermuda

DHL launched its new express delivery, time definite service in five countries in the region: DHL Express 10:30 am for deliveries to the United States.

Caribbean customers can now enjoy the assurance and security of knowing delivery times while experiencing the added comforts of a money back guarantee, said DHL, one of the world’s leading express services and logistics companies.

The new morning express delivery service addresses the needs of customers that require time definite deliveries, giving them the option of when and at what time they wish their time-sensitive materials to arrive at their destination, DHL added.

This new offering is available to customers and companies that ship to key business centres in the United States from Bahamas, Bermuda, Cayman Islands, Dominican Republic, Haiti and Jamaica.

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DHL's expanded Central Asia Hub in Hong Kong

Situated at the Hong Kong International Airport, the expanded CAH is one of the main intercontinental hubs in DHL Express’ global air network, connecting the Asia Pacific region with the other regions in the world. It will also serve as one of the main Asian bases for DHL’s airline partners Polar Air and AeroLogic who will operate growing transpacific and Euro-Asian trade lanes from October this year and spring 2009 respectively.

The CAH in Hong Kong is DHL Express’ main regional hub in Asia Pacific. It serves as one of the region’s main gateways to China and as a catchment area for the Pearl River Delta area, one of China’s main manufacturing bases. CAH is also the home base for Air Hong Kong, our JV with Cathay Pacific.

Dan McHugh, CEO, DHL Express Asia Pacific said that at present, over 60 per cent of express cargo processed by the Central Asia Hub is intra-Asia Pacific shipments and the figure is expected to continue growing alongside rising intra-regional trade.

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Ethiopian post office to sign deal with international carriers

As part of a reform program, the Ethiopian Postal Service (EPS) office is set to sign agreements with international carriers, with the view of boosting the postal services, the Ministry of Transport and Communications (MoTC) of Ethiopia disclosed.

Junedi Sado, Minister of Transport and Communication told journalists on September 1, 2008 that the Postal Service has been undergoing the implementation phase of a Business Process Re-engineering (BPR) in collaboration with the Ethiopian Civil Service Agency for the last nine months.

A source from the Ministry told Capital that working agreement will be signed with international carriers, including DHL, UPS and other big firms in the industry to share destinations for delivery of packages; however the agreement date is still unknown.

Even if EPS is yet to feel the impact of e-mail and other advanced communication technologies on revenue, a study conducted by foreign consultants shows that EPS can no longer sustain itself in the market if not engaged in the financial markets as other national postal enterprises do.

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