DHL to Discontinue U.S. Domestic Shipping Services

Posted by Patrick Phelps Categories: Corporate News, Transportation

DHL, a popular shipping alternative to FedEX, UPS and the U.S. Postal Service announced today in a press release that it will end all domestic shipping services effective January 30, 2009. According to the release, DHL’s U.S. Express business will focus entirely on its international offerings and will discontinue its domestic-only air and ground services, eliminating its U.S. ground hubs, and reducing the number of stations from 412 to 103. This will result in a reduction of 9,500 U.S. jobs at DHL Express on top of the approximately 5,400 positions already reduced since January; retaining 3,000 to 4,000 U.S. Express employees, tailored to the needs of international express customers. This reduction is expected to allow DHL’s U.S. Express business to reduce its operating costs from $5.4 billion to under $1 billion, a decrease of over 80%.

We’re hoping that this loss in competition doesn’t drive up the cost of shipping, seeing as the majority of our gadgets are doorstep-delivered by one of these shipping giants. Cross your fingers.

Read More | DHL via Bloomberg