Tag: USA

DHL US builds network and predicts losses of USD600m

Going after the U.S. express market is proving more expensive than DHL had anticipated.

The company’s parent Deutsche Post World Net says it no longer projects a profit in North America before 2006 and instead could lose around USD600 million this year and USD370 million next year as it bulks up to challenge FedEx and UPS.

DHL is spending USD1.2 billion on building infrastructure in the United States, including a network of regional ground hubs it is rolling out this fall. DHL says it remains focused on the long term market potential, not the losses in the short term.

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Lawmakers doubt White House’s commitment to postal reform

Lawmakers of both parties are frustrated by the White House’s inaction on legislation to overhaul the way the U.S. Postal Service operates.
House Government Reform Chairman Tom Davis, R-Va., is frustrated that the White House does not appear to recognize the urgency of reforming the Postal Service and has not lent its clout to advance the bills, said Davis spokesman David Marin.

The Postal Accountability and Enhancement Act, S 2468 and HR 4341, have been passed unanimously by the House Government Reform and Judiciary committees and the Senate Governmental Affairs Committee. They have not been scheduled for a vote in their respective chambers.

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US Postal Service lauded at global postal conference

The U.S. Postal Service has gained international recognition for on-time delivery performance and customer care for its Global Express Mail (GEM) service. Paul Vogel, USPS vice president of Network Operations Management, accepted an award for GEM in Bucharest, Romania, at the 23rd Universal Postal Union (UPU) Congress, a gathering attended by members of postal services worldwide. GEM, one of the Postal Service’s expedited international mail delivery offerings, provides fast service to 18 countries.

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DHL makes US push, takes on rivals FedEx, UPS

DHL’s yellow and red delivery trucks are on the road as its USD1.2 billion investment in the United States gets rolling, but investors waiting for the company to make a dent in the businesses of its two major U.S. rivals may need to be patient.

DHL, the U.S. express and logistics business of Germany’s Deutsche Post AG, plans to have a U.S. ground network equal or better to its rivals FedEx and United Parcel Service by the end of 2005.

“We’ve decided to accelerate efforts and hit the ground harder, faster, sooner,” Richard Metzler, DHL America’s executive of vice president of marketing, said in an interview.

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