UPS eyes DHL business

Global - UPS has its eye on DHL's US business, after the latter announced its exit from the US ground and air express market come January.

Speaking to Purchasing.com, UPS spokesperson Normal Black said its hope is to get as much of dropped DHL business as it possibly can. "We might not get all of it but we believe DHL customers in the US are putting premiums on reliability, staying power as well as technology and service options."

The company added that it would not have to expand its current capacity to accommodate the added business. This is largely due to a drop in shipping volumes, which will be bolstered by business from DHL's customers.

UPS said it has set up a website for DHL customers to make a move to UPS services.

DHL previously announced plans to exit the US ground and air express market, making some 9,500 workers redundant in the process.

"This is the right move for our US Express operations given the current economic climate and for the long run," said John Mullen, global CEO of DHL Express.

According to market analysts at the Stifel, Nicolaus & Co investment house estimates, DHL held approximately 3% of the US ground express market and 8% of the air parcel market which adds up to about US$3.4 billion.