DOT begins review of DHL Airways
One month after Deutsche Post World Net announced plans to acquire the ground operations of Seattle-based Airborne Express Inc., shoe and apparel maker Nike Inc. informed United Parcel Service it was switching to the German delivery giant to move its European shipments.
According to UPS officials, Nike said it changed logistics companies because Deutsche Post offered rates 10 percent below those of UPS.
The loss of the $8-million account for standard, express and return logistics service adds fodder to the battle between global logistics integrators UPS, FedEx and Deutsche Post for global market share and access. And it reinforced the belief held by the U.S. integrators that Deutsche Post’s low package rates are being subsidized by its postal business and other state aid.
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