DHL has announced that it will discontinue its express and ground services in the U.S.
FedEx, UPS, and the USPS want your business.
FedEx is offering new customers a 16% discount on Express services and 8% on Ground and Home Delivery services when you use their software. If you are using a DHL technology you can get a comparison to similar solutions from FedEx.
UPS has created a welcome center for DHL customers right from their home page. You can also compare UPS services & technology to DHL. No discounts are announced.
The US Postal Service issued a statement that it “is open for business and ready to deliver with a full range of competitively-priced shipping products and services.”
In addition, there are regional carriers in some parts of the country that offer package delivery.
What should you do?
My position has always been that no carrier is the best carrier for everything. Every carrier has its strengths and weaknesses. Even without DHL for domestic services, it is still true.
The key to getting the best price is to understand your package characteristics. If all you do is ship light weight residential packages, the USPS may be your best carrier. But, I have seen found that it is rare that any organization only does only one kind of shipping. There is usually a need for shipping envelopes and packages. They may need to be there by a certain time (next day by 10:30) or it may not matter. There are over 25 variables that affect the cost of shipping and different carriers provide various price points depending on their niche.
Larger shippers that spend over $1 million dollars on small parcel shipping should hire a professional parcel negotiator. Let’s face it; with DHL’s announcement, your leverage is gone. If you are interested in working with the best parcel negotiators in the country, let me know, and I will be happy to help you find the right one.