DHL US restructuring will not affect chemicals

12 November 2008 21:46  [Source: ICIS news]

NEW YORK (ICIS news)--The closure of DHL’s domestic-only ground and air delivery services in the US should have almost no impact on chemical shipments, an official with DHL Express said on Wednesday.

On Monday logistics and express service provider DHL announced it would discontinue its US domestic-only delivery services for packages as of 30 January, focusing entirely on international operations.

The moves will result in the closure of DHL US Express ground hubs, the reduction of stations from 412 to 103 and the loss of 9,500 jobs.

“The chemical bulk shipping and supply chain business will be untouched by this move. This won’t disrupt volumes at all,” said John Mullen, CEO of DHL Express. Mullen was talking in a meeting with reporters in New York City.

“This will only impact chemicals in a small way, in terms of things like shipping documents,” he added.

DHL offers the global chemical industry a variety of supply-chain and logistical services, such as distribution and warehousing, sample packaging and shipping, procurement and order management and freight forwarding.

“We will remain a market leader in both supply chain and logistics – this is a profitable and successful business that will be un-impacted by this restructuring,” Mullen said.

DHL expects to lose about $1.5bn (€1.2bn) in 2008 from its US Express business, Mullen said.

DHL is owned by Germany-based Deutsche Post World Net.

($1= €0.80)

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By: Joseph Chang
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