A clash between DHL and China’s postal service over the German group’s entry into the domestic express delivery market has highlighted the tensions between foreign companies and the Chinese government over regulation of the country’s parcel delivery market.
Last month DHL, a unit of Deutsche Post, announced the launch of a domestic express delivery service, the first operated by a foreign company in China.
Read MoreAfter FedEx and UPS, the No. 3 player in the U.S. express package delivery market is DHL, which has a major air hub at Cincinnati/ Northern Kentucky International Airport.
Although DHL is No. 3 in the U.S., its international operations are much larger, especially in Europe, where its parent company is based.
Read MoreNo sooner had DHL declared it the first foreign firm to carry out express delivery service in China and stirred up media fever when a spokesperson from the China State Post Bureau claimed that so far, it had never approved any foreign- funded company to set foot in the field. The bureau hasn’t provided DHL with the license necessary for carrying out express business in China, nor did it approve any other foreign-funded firm, said the spokesman. China did not promise to open its postal market in its commitment to the WTO. As to whether DHL has violated Chinese laws and regulations by founding a place in the field, the bureau said it would keep a close eye on DHL’s business in China.
Read MoreSimpler customs procedures make deliveries within the EU faster and cheaper THE EUROPEAN Union should bring customers in the new member states tangible advantages on the express delivery services market. Insiders say that clients can expect lower prices and faster deliveries. Customs procedures at Slovak-EU borders were abolished from May 1, meaning customers can now avoid chronic customs delays.
Read MoreOhio and Kentucky have been thrust into a competition to keep and possibly expand their DHL cargo hubs, a major employer in both states.
Both states are putting together tax incentive packages to persuade DHL to choose one over the other. Thousands of jobs may be at stake in what could be one of the most expensive contests between the two states to keep and expand jobs.
DHL, which operates an air hub and package sorting facility at Cincinnati/Northern Kentucky International Airport, is considering consolidating that hub with a larger one it now owns in Wilmington, Ohio, just 50 miles to the north, said DHL spokesman Jonathan Baker.
DHL bought Airborne Express last summer and insisted it would keep both its Cincinnati facility and a similar operation at Airborne’s Wilmington airport. But the company changed its tune after the closing of the $1 billion deal and an ongoing consolidation of other DHL operations.
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