DOT Won’t Block DHL-UPS Air Deal

Transportation Secretary Mary Peters told Ohio Gov. Ted Strickland (D) she does not believe a plan by DHL Express to use UPS Inc. for its U.S. air cargo operations constitutes unfair competition.

Strickland asked DOT to investigate the deal, which was announced in May by DHL’s parent company, Germany-based Deutsche Post.

“While I understand your concerns over Deutsche Post’s proposed restructuring of DHL, it is our view that this restructuring would not constitute an unfair or deceptive practice or unfair method of competition,” Peters wrote in a letter earlier this month.

DOT’s “regulations do not impose restrictions on a foreign air freight forwarder’s choice of U.S. carrier to transport its cargo,” Peters wrote.

The deal could result in a loss of up to 8,000 jobs at a DHL air hub in Wilmington, Ohio. The pending deal has been criticized by Ohio lawmakers and could be subject to congressional hearings in September.

DHL is ranked No. 4 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers. UPS is ranked No. 1.