DHL Drops US Domestic Service

As of January 30, 2009, DHL will end US domestic-only service and become strictly an international carrier for US shippers and consignees.

DHL US Express will close its US ground hubs and reduce the number of stations it operates from 412 to 103. It estimates this will also eliminate 9,500 US jobs on top of approximately 5,400 positions eliminated since January 2008. This will leave DHL with 3,000 to 4,000 US Express employees concentrating on international express customers.

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The move will reduce DHL US Express operating costs from $5.4 billion to under $1 billion.

“Making a decision that affects the lives of many dedicated employees is never easy, but this is the best path forward for our company,” said John Mullen, Global CEO of DHL Express. Mullen reiterated that a continued US presence is essential to its global Express network. Nearly half of DHL's top 200 customers are based in the US, he said, and US trade lanes make ups nearly half of DHL's global volumes. “Half of our global shipments touch the US. We are here to stay,” said Mullen.

The decision will not affect Global Forwarding/Freight, Supply Chain/Customer Information Service and DHL Global Mail, according to the announcement. “With more than 25,000 employees across the country, these divisions will continue to conduct their successful US operations.”

For further information:

DHL Plans to Ease Its $1.3 Billion Headache
DHL Executive Testifies on UPS Deal
DHL CEO Outlines North American Future
DHL ups its U.S. ante
DHL Wants to be a Contender

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