ATLANTA — Delivery company DHL, hit by heavy losses and fierce competition, is significantly reducing its air and ground operations in the U.S. and cutting 9,500 American jobs, leaving rivals such as Fed Ex, UPS and the U.S. Postal Service to fight over the customers it will stop serving.
The decision Monday could lead to higher shipping prices and scale back a possible venture between UPS and DHL, the U.S.’s fourth-largest shipper of packages.
Deutsche Post AG, the German parent of DHL, said it will not offer U.S. domestic only air and ground services as of Jan. 30, though it said international shipping to and from the U.S. would continue.
DHL has tried to be a major player in the U.S. since it bought Airborne’s ground-delivery network for $1.05 billion in 2003, but it has lagged in the air and ground markets combined, analysts said.
As other shippers pick up some of DHL’s business in the U.S., it could boost the bottom lines of the shippers.
“The real upside might be . . . when the economy is feeling better and FedEx and UPS are able to raise prices because they won’t have another competitor nipping at their heels,” said Avondale Partners analyst Donald Broughton.
