UPS DHL talks fail

TALKS negotiating the possibility of UPS to handle DHL’s US domestic deliveries have been terminated.

“UPS and DHL have mutually agreed to terminate their negotiations,” UPS spokesman, Norman Black, said. “UPS is in its quiet period before earnings and will have nothing further to say at this time.”

“We were unable to reach a conclusive agreement that was acceptable to both parties,” the DHL spokesman said.

The deal was expected to be worth US$1 billion a year.

In addition, DHL is to fully pull out of Wilmington, Ohio, and return its US gateway and national package-sorting operations to the Cincinnati/Northern Kentucky International Airport.

It will continue its existing contracts with local airfreight handlers ABX Air and ASTAR Air Cargo.

“As a result of the company’s focus on international express services, re-establishing DHL Express operations at Kentucky will be more cost-effective for handling the company’s international express shipping volumes, and is expected to improve DHL’s long-term financial position,” DHL said in a statement.

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