UPS Scraps DHL Airfreight Deal
UPS Inc. said Friday it has scrapped an agreement to carry DHL’s U.S. airfreight, a deal which would have added about $1 billion to UPS’ annual revenue, news services reported.
UPS spokesman Norman Black told the Associated Press the two agreed to end the deal, without giving further details.
Bloomberg reported it was scrapped in light of Deutsche Post AG unit DHL shutting down most of its U.S. operations last year. (Click here for previous story.)
The move had also drawn scrutiny from U.S. lawmakers, who had raised concerns over the industry consolidation causing jobs, particularly in the state of Ohio.
The deal was first announced last May. UPS is scheduled to release its first-quarter earnings Thursday.
Separately, DHL said Friday it will move its U.S. hub operations for its international business from Ohio to the Cincinnati/Northern Kentucky International Airport to save money, the Associated Press reported.
UPS is ranked No. 1 and DHL Americas is No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
