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> Admin PanelTue 29 Jan 2008
In brief: Is FedEx going to “eat” DHL?
Posted by Matthieu Desiderio under air, economics, finance, freight, logistics, projects, road, transport
I read in the article referenced below from Les Echos, that Deutsche Post, DHL mother’s company, could sell DHL’s US activities. FedEx, ranked number 2 in the United States for packages shipping, with 29% market share, should be interested according to the Financial Times Deutschland.
Deutsche Post apparently filed a €600 million assets depreciation for its American subsidiary and declared nothing more than “the company is working on improving the performances of its express mail activities in the United States”.
DHL (originally standing for Dalsey, Hillblom and Lynn) is a Deutsche Post company of Germany that provides international shipping of documents and freight as well as contract logistics. The company was founded in 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn. The trio initially provided a courier service between the Continental United States and Hawaii then expanded the business from there. In 1998, Deutsche Post began to acquire shares in DHL, finally reached majority ownership in 2001, and completed the purchase in 2002.
Source: Wikipedia article about DHL
Could it be a way for FedEx to catch up with its opponent UPS? Will UPS make a counter offer? The article is quite elusive about FedEx-Deutsche Post potential deal but something will happen… to be continued!
References
- Article: Deutsche Post pourrait vendre DHL aux Etats-Unis, Les Echos, Jan. 28, 2008: here
- Website: FedEx, About FedEx page: here
- Website: DHL: here
9 Responses to “ In brief: Is FedEx going to “eat” DHL? ”
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March 31st, 2008 at 4:07 pm[...] 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 [...]
January 29th, 2008 at 6:30 pm
What is FedEx buying..DHL ops are contractors and Teamsters..no airplanes. Does FedEx want Teamsters - NO; Does FedEx need more contractors..they are already having issues with this..Customers - If smart the customers will bid themselves out to UPS / FedEx to keep their rates down.
A trade for US deliveries for EU ones..FedEx bought a UK company that competes with DHL..also they are bitter rivals in Asia..
This Urban Myth created by the German News Media and Wall Street analysts just doesnt make sense.
January 29th, 2008 at 6:54 pm
Dear Yannick,
I am glad you reacted to this (short) article, if this can be considered as an “article”. I wrote this post actually because I wanted to know more about this issue, and here you are. So, thanks for your comment, that is quite interesting as far as what I read was just a small note in Les Echos (linked article)
I would be glad to receive any materials you could send me, that I could publish here. Eventually, could you tell me more about the fact that “Deutsche Post apparently filed a €600 million assets depreciation”: is this also a myth?
However, something is not clear in my mind: you said DHL does not operate airplanes but I also read a press release from Boeing website, dated March 2007, saying that “Boeing [to Supply] supplied Six 767 Freighters to Re-fleet DHL U.S. Operations”… please, let me know more.
Once again, thank you for stopping by. I hope we could exchange more about transportation issues in the future.
January 30th, 2008 at 1:06 pm
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…
January 30th, 2008 at 1:43 pm
Thanks for your comment. I will have a look into it and come back with a more complete article.
Would you mean FedEx would actually be interested in buying not DHL but more ABX Air and ASTAR?
January 30th, 2008 at 6:30 pm
ABX would be a good buy for FedEx. ABX has just purchased Capital Cargo Holdings who provide aircraft to ATI and BAX Global (now Schenker)a major German freight forwarder. This could rapidly make FedEx the biggest player in the US and Europe.
January 30th, 2008 at 11:23 pm
Thanks for completing the information about ABX.
I also read today in the TTNews Express that UPS lost money because of pension charge, it is maybe the good time for FedEx to make the difference?
UPS Takes $2.58 Bln. 4Q Loss on Pension Charge
UPS Inc. said Wednesday it lost $2.58 billion in the fourth quarter, primarily due to a big charge to exit a union pension plan.
January 31st, 2008 at 2:56 pm
A French version of the article about UPS loss in 4Q:
UPS trébuche à cause d’une charge exceptionnelle de 6 milliards de dollars
February 19th, 2008 at 6:23 am
This is very intresting, Fedex buying DHL. I do have a question. Would these be a good thing or a bad thing for Fedex ground contractors? anyone with some contractor answers would be appriciated.