Fewer Shipping Choices, Higher Prices?

Shipping decisions suddenly became easier this week as DHL announced the end of their domestic US parcel operations at the end of January 2009. Shipping departments across the nation were busy removing the DHL options from their transportation software and putting those DHL boxes and shipping forms out for recycling. After DHL’s purchase of Airborne Express in 2003 many companies looked to DHL as a viable option to the FedEx/UPS stalemate.

However after failing to win over and keep new business, DHL have always struggled. Earlier this year DHL had tried to reduce costs by outsourcing its air operations, but the slow down of the US economy came at the wrong time and DHL’s parent company, Deutsche Post, decided end the loss making operation. The demise of DHL means an end to the low price option and companies will no doubt find that their shipping costs in 2009 will increase.