Shake up in the Cargo World


#1

money.cnn.com/2008/11/09/news/co … 2008110922

Interesting…


#2

It was announced this morning (10NOV) that DHL will be ceasing all inter-domestic operations in North America.


#3

This has been coming for along time. Last year DHL pulled all their feeder routs from Ameriflight and announced it was going to stop domestic freight


#4

inter-domestic??? Must me a new hyphenated word I haven’t heard of. :slight_smile:

They are cutting domestic services in the USA and keeping their international services from/to the USA. DHL cuts 9,500 jobs

This isn’t going to be a big impact on domestic shipping. According to the above article, DHL only had about 3-4% of the market.

I’m not surprised at this. From a customer’s point of view, DHL really has lousy service.


#5

Those job losses almost serves Ohioans right. The voted down two laws this past election that would of helped create jobs including a casino that was suppose to help cut job losses in the Wilmington area (where ABX Air is located).


#6

Reminds me of the state of Missouri about 35 years ago. The unions got out and convinced the voters that they shouldn’t vote to make Missouri a right-to-work state. Then, when the election was over, there were multiple strikes. Just shows that you can’t trust the unions anymore than the government.


#7

Well yes I am bias, but I have seen DHL drivers pull up at the end of a drive-way and chuck packages to the front door of the house.


#8

Man, Ohio has got to be struggling. So many job losses this year.


#9

It seems like alot of the DHL ground ops were operated by contract companies. I guess the airline side of it was the same way as well, but with Fed Ex (Express orange not Freight, Custom Critical, Ground etc) it is a real Fed Ex employee, as with UPS it’s real UPS. DHL was always a contract company DBA DHL, paid lower than their “mainline” counterparts, etc so maybe a reason for the paperboy style delivery?

A hockey freind of mine was a manager at one of these private companies for a while and he said it was a kinda rough environment.
Sad to see, but I guess as with everything else in this day and age, it’s bound to happen.


#10

The national news break on the radio this morning said this would be a big blow to Willimington, Deleware. :unamused:

DHL and Airborne before that provided horrible service. Adios!


#11

Those job losses almost serves Ohioans right. The voted down two laws this past election that would of helped create jobs including a casino that was suppose to help cut job losses in the Wilmington area (where ABX Air is located).

I have three relatives - two with families - that lose their jobs as result of the ABX shutdown. I’ll be sure to relay your message - I’m sure they’ll understand they deserve it. :confused:


#12

Well sure, the news said that 1/3 or1/2 (i forget which one) of their jobs are connected to DHL.


#13

Except, Wilmington OH is the big DHL (formerly Airborne) hub.
But at least the media is unrelated, the first airline I worked for served both my Springfield (IL) and Springfield MO, and everyday our own employees who were supposed to pass the city codes test to work would send a bag or two to the wrong one.
But yeah the media sure didn’t quite hit the Rand Mcnally before they posted that one eh?


#14

I’m just a little frustrate with Ohio voters, especially those in Columbus and Cleveland. Everyone knew these losses were coming and yet state leaders did nothing in helping job creation and the voters didn’t help much by shooting down two indsutries that were to keep and and create jobs in Ohio. The people who work at ABX are some of the hardest working people in the world with a 99% on-time performance (a number I could only dream of). But for the state overall, it is their fault that we have so many businesses leaving Ohio and no one wants to start a business here.


#15

Actually and someone can correct me on this but at UPS I BELIEVE(correction may be needed) they have their own ramp at HUBS only, the rest of their ramps are also contract…I know this because when I worked for DynAir, and Signature Flight Support we handled their flights at IAD.


#16

That could be true, I think the KDEC UPS operation is contract too, but I’m thinking more of the actual delivery , the vans in the streets. I think most of the DHL stuff was a private contractor where as the brown trucks are UPS, and the Orange and Purple (not the green red or blue and purple) are all Fed Ex.


#17

ahh got ya


#18

DHL delivery personnel are no different from Fedex or UPS. You occasionally get the guy who throws or a kicks a package. Anyone who thinks its just DHL obviously doesn’t get a lot of packages.

Even though DHL had a small percentage of cargo, competition keeps prices low. Even a small percentage is better than nothing. The few times I received a package from DHL ground it was sent almost across country in 2-3 days.


#19

Being a truck driver (who just happens to love aviation, that’s why I’m here), I’ve talked to quite a few other drivers, and here’s what I’ve found out over the years:

UPS: All of them are UPS-hired and -employed. They all start off driving the brown delivery trucks, and eventually move into the line-haul big rigs if they want to.

FedEx: I think the actual delivery drivers are “company” drivers. As for the line hauls, FedEx Freight (they bought Viking, and 1 or 2 others) and FedEx Express are mainly company drivers, although I sometimes see an owner/operator pulling their trailers. Some of their stuff is also hauled by outside carriers. FedEx Custom Critical are all Owner/operators, own their own trucks. FedEx-CC just tells them what to do.

DHL: I think DHL is just a company that oversees frieght without actually handling it. All deliveries are by a contract company, usually with some rather crappy-looking vehicles, and the linehauls are usually run by some trucking company of your choice. I’ve had a few DHL loads myself when I was working for Knight.

So yeah, the DHL shut down will affect the people of Wilmington, OH, as well as all the contract people… those trucking companies will now try to undercut each other for other freight to make up for any losses… which is probably why I’m stuck at a truckstop near KAWM for 24 hours now :smiley:


#20

Addition: FedEx home delivery is operated by contractors.