I would like to continue the debate we had in the previous post (In brief: Is FedEx going to “eat” DHL?, Jan. 29, 2008) about the potential buy out of DHL (Deutsche Post subsidiary) by FedEx…

True or not, a lot of things have been exchanged in the comments’ page. It has been quite intriguing me since then and I did not find any answer that I am satisfied with… The reason why I would like to know is mainly because of these two strangely “blurry-precise” comments:

“This Urban Myth created by the German News Media and Wall Street analysts just doesnt make sense.”

“ABX Air and ASTAR are the main US air providers for DHL. DHL ownes half of ASTAR and ABX is in 2 contract agreements with DHL. They provide majority of their air fleet and majority of their ground/sort personnel…Research there and you will find out why FEDEX is interested…”

The first quote comes from an author who may apparently know a lot about these deals between UPS, FedEx, and DHL activities but who seem not wanting a fight “FedEx + DHL against UPS”… I am still not convinced by the “Urban Myth” idea because the second quote comes from someone who seems to have a good idea of what is happening inside, and who apparently do not believe in the “Urban Myth” theory: he gives a clue but I can not reach enough information to get an answer…

Not only the press cares…

“According to the UBS analysis, a deal between DHL and FedEx revolving around DHL’s domestic U.S. parcel business conceptually makes sense.”

“In 2007, 42 percent of customers thought it “unlikely” DHL will become a strong competitive threat in the U.S. airfreight industry, according to the UBS survey.”

Source: Wilmington News Journal

If a “Urban Myth” it is, why does UBS is caring about knowing if a DHL-FedEx deal would or would not make sense?

“In an interview with the Wilmington News Journal last week, DHL Americas Director of Corporate Communications Jonathan Baker said the company in general would not respond to future media reports “speculating” on the future of DHL in the United States.”

Source: Wilmington News Journal

If a “Urban Myth” it is, why isn’t DHL Americas Director of Corporate Communications would not answer the questions?

“A DHL spokesman says parent company Deutsche Post World Net has no plans to sell its U.S. Express delivery service to its Memphis-based rival FedEx Corp. “There is no question about our exiting the U.S. business, a withdrawal can be completely ruled out,” DHL spokesman Jonathan Baker said in a Friday phone interview with the Memphis Business Journal.”

Source: South Florida Business Journal

If a “Urban Myth” it is, why is Jonathan Baker saying different things in different papers? Did somebody really interviewed this Mr. Baker or J. Baker is the new nickname for John Doe?

“CFO John Allan said Deutsche Post intends to retain “a significant presence in the U.S.,” but that the company is exploring many options for the business, such as giving up a controlling stake in its U.S. express division (DHL Express US).”

Source: Supply Chain Digest

If a “Urban Myth” it is, why is the CFO “exploring many options for the business”?

And, as the Motley Fool’s confer a title on its article “FedEx + DHL Isn’t Necessarily Bad for UPS”… Is it this true?

I wish I could get answers to these questions… Tell me “Mister UPS”, if your company would be afraid of a “FeDHexL”?

References

  • Article: Analyst: DHL, FedEx deal ‘makes sense’, Wilmington News Journal, Jan. 31, 2008: here
  • Article: DHL denies sale to FedEx, South Florida Business Journal, Jan. 28, 2008: here
  • Article: FedEx-DHL US tie-up mooted, Impact Publication, Feb. 4, 2008: here
  • Article: Logistics News: Are Reports of DHL’s Possible US Exit Premature?, Supply Chain Digest, Feb. 5, 2008: here
  • Article: FedEx + DHL Isn’t Necessarily Bad for UPS, The Motley Fool, Feb. 4, 2008: here