WILMINGTON - As a Monday press conference in Bonn, Germany, draws near, there appear to be warning signs DHL's business in the United States continues a downhill slide.
Unishippers, a franchise business that consolidates shipments for small businesses, has announced it has switched to United Parcel Service (UPS), according to a Wednesday report on Traffic World Online.
Traffic World Online called Unishippers "the highest-profile shipper yet to abandon DHL in the United States."
According to the DHL Press Office, Monday's press conference is being held "to discuss DPWN business results in the first nine months of the year, and inform you about the progress and further steps in the restructuring of our DHL U.S. Express business." DPWN stands for Deutsche Post World Net, which is the parent corporation of DHL Global, including the U.S. arm of DHL's global freight network.
Taking part in the Bonn press conference will be DPWN CEO Frank Appel, DPWN Chief Financial Officer John Allan, and DHL Express CEO John Mullen.
The Traffic World Online report said DHL officials did not comment "on growing suggestions" DHL was unable to reach an agreement with UPS on a planned air freight contract involving DHL's shipments within North America.
Meanwhile, an online Monday report in e-Cargonews Asia said some observers surmise DHL has ended its plan to be a viable alternative to FedEx and UPS in the U.S. parcel market. These observers predict DHL will return to its earlier focus on international shipments to and from the United States.
The online trade publication adds if DHL does limit its U.S. operations to international shipping, "there would be no point for DHL to pursue the planned agreement with UPS." That's because the announced proposal between the two megacarriers would involve DHL's air freight within North America, which of course includes DHL air freight that has a U.S. starting point and a U.S. end-point.
U.S. Sen. Sherrod Brown on Friday asked the head of cargo carrier DHL for advance notice about possible job losses at a Wilmington air park to make sure that any laid-off workers get relocation assistance, training and other services.
The Ohio Democrat sent the letter to DHL Express CEO John Mullen on Friday. Mullen is scheduled to discuss the company's business plans on Monday following an earnings report.
DHL announced in May that it plans to hire United Parcel Service to replace ABX Air and ASTAR Air Cargo in transporting DHL packages. The proposal would mean much of the work normally handled at the western Ohio air park would be transferred to a UPS facility in Louisville, Ky., resulting in the loss of about 8,000 jobs in Wilmington.
UPS has said it expects the deal to be completed by the end of the year.
The state has asked the U.S. Department of Labor for a National Emergency Grant to help assist workers who lose their jobs. On Friday, Brown called U.S. Deputy Secretary of Labor Howard Radzely seeking immediate attention to Ohio's request.
In his letter to Mullen, Brown asked that DHL issue warning notices for all workers whose jobs are terminated to ensure that they receive all the necessary services. Brown said he understands that hundreds of workers may have already been laid off without such warning.
"Without detailed information, it is much more likely these workers will fall between the cracks in the work-force system," Brown wrote.
DHL spokesman Jonathan Baker said the company always issues such warnings when required.
Meanwhile, DHL has donated $1 million to the Clinton County Foundation to help charities make up the difference between the level of donations made before DHL's announcement in May and donations currently being made, when many people are less able to support charities.
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