DHL to Move to Cincinnati, Deal With UPS a No Go

UPS and DHL have been in discussions for months seeking to reach an accord on the handling its shipments. Previously DHL had stated it would seek to move some $1 billion in annual business to UPS, as it withdrew from the US domestic market. Though neither side is saying why, the discussions have ended.

Subsequent to the ending of negotiations, DHL announced it is moving hub operations for its international business back to the Cincinnati/Northern Kentucky International Airport. It has previously used the Hebron, Kentucky site and will be reactivating its automated facility there. It had operated there for 20 years until moving to the Wilmington, Ohio airport in 2005. Reports are that DHL received a $1.8 million tax incentive program from the State of Kentucky.

The move has significant ramifications for Wilmington that will now lose an estimated 1,500 jobs. These are in addition to the 3,000 lost when DHL initially began its US restructuring. At Wilmington, ABX Air provides airlift for DHL. It has an agreement with DHL that runs through August 2010. The air carrier will move its service to the Cincinnati airport with completion by mid- to late-summer when DHL expect to finally accomplish its move.

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