As of January 30th, 2009 the small parcel shipping market just got a lot less competitive. Logistics provider DHL plans to exit the ground and air express markets in the U.S. and focus all U.S. resources solely on the international market (import/export) business.
DHL entered the U.S. market to do battled with the more established players (UPS and FedEx) when it bought Airborne Express in 2003. DHL had previously committed to the U.S. market in early 2008; however, industry watchers saw the writing on the wall early in the year after a variety of reports surfaced about DHL outsourcing its air fright to UPS.
DHL’s exit from the U.S. market will likely not benefit the pocketbooks of most shippers. DHL had carved out a small market as a low-cost carrier, with prices that routinely beat UPS and FedEX. Let’s hope that with the sluggish shipping market that UPS and FedEx adjust rates; however, recent rate increase notifications are a harbinger of what could be significantly less competition. For consistent users of DHL, analysts indicate that you should pay particular attention to service levels between now and January 30th.
For Shipwire users, we will be removing DHL as a shipping option and automatically presenting users with comparable DHL alternative shipping options to try and limit the business impact. If you are a DHL affiliate maybe consider becoming a Shipwire shipping affiliate.
Posted by:
Nate Gilmore
Nate oversees our channel development and developer network, as well as our marketing and public relations. Previously, Nate was at Concentric, acquired by XO Communications, where he ran product management, sales and marketing. Over his six year career with Concentric, he developed dozens of new business channels, by initiating new products for small- and mid- size businesses, developing partner programs for those products, and working with web developers and systems integrators to provide ongoing support of those products. Nate has also held various legal positions in intellectual property and business law. He holds a B.A. in History, and a J.D., from Santa Clara University.
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