Wednesday, April 22, 2009

DHL’s departure leaves shippers with fewer options

After losing $10 billion in their effort to , DHL is throwing in the towel. Now that DHL has announced they are ceasing their domestic package shipping, where does that leave you?

Short term, UPS and FedEx, the two remaining providers, are eager to pick up the business. If you are a DHL shipper, you can count on being wooed by both. But longer term, fewer choices means less leverage for shippers nationwide, and a return to the “duopoly” DHL warned against when they decided to go up against the existing heavyweights.

DHL has committed to continuing its US operation through January 30th, 2009. Smart DHL customers aren’t waiting to put new arrangements into place. And existing FedEx and Big Brown customers are going to have to negotiate new agreements with fewer alternatives to choose from.

In challenging economic times, you need to be sure you are squeezing every possible cost from your parcel operations while still keeping service levels high. If you are not fluent in the language of accessorials and calculating the ever-shifting breakpoints for choosing between various shipping options, working with a partner with the clout and expertise to rein in your transportation costs can save you significant amounts of money on your bottom line.

899-989-0054 x103

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