United Parcel Service, Inc. (Public, NYSE: UPS) announced Wednesday that it hopes to close a deal soon with competitor DHL in which UPS will carry air freight for some DHL units within the U.S.
3 key reasons why the potential UPS-DHL shipping deal could work in UPS's favor:
1. UPS would strengthen its position as the world's largest shipping carrier.
2. The agreement could mean up to $1 billion in annual revenue for UPS.
3.The deal would help UPS take delivery of 12 new aircraft by 2009.
I think it's a sign that the end may be near for DHL, at least as a viable competitor to UPS and FedEx in the ground/air shipping industry. DHL may need to change its game plan or eventually surrender (or sell out) to one of its two main competitors.
Do you think this prospective UPS-DHL deal will work for or against UPS in the long run?
» UPS and DHL Team Up: How Will It Affect Customers? from CustomersAreAlways
In the news this past week there was buzz about UPS's (United Parcel Service) deal with DHL to carry some of DHL's air packages. Of course this deal would work in UPS's favor because of the potential for more... [Read More]
Tracked on: May 30, 2008 10:47 PM | Permalink to Trackback