DHL Gains International Business From UPS Strike

Business Wire, August 14, 1997

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Aug. 14, 1997--The DHL Worldwide Express network has gained new United States-based international express shipping accounts since the Teamster's strike against UPS began last week.

Many of the new accounts are under a one-year contract and include as many as 300 shipments per day to destinations throughout Europe, Latin America and Asia. Across the country, banks, computer companies and other exporters are turning to DHL to deliver their international express documents, packages and valuable freight.

"Although our domestic (intra-U.S.) system is operating at capacity, the DHL network is fully capable of handling additional international express shipments from existing and new U.S.-based customers," said Patrick Foley, chairman and CEO of DHL Airways Inc., the United States arm of the DHL Worldwide Express Network. "We realize that a majority of UPS customers are in need of domestic service, but because the DHL network is designed to handle mainly international expedited shipments, we cannot accommodate domestic shipments from anyone other than existing customers."

After the first week of the UPS strike, DHL continues to experience a surge of incremental express shipments, with volumes at more than 40 percent above last year at this time. DHL has made several adjustments to its network to accommodate recent additional volumes, including the acquisition of supplemental temporary aircraft and vehicles, increasing flights of existing aircraft and the hiring of additional temporary employees.

Due to this increase in volume, DHL has initiated several interim policies and procedures in order to provide reliable and uninterrupted service for existing customers at their normal, pre-strike shipping levels:

-- DHL has temporarily suspended acceptance of domestic (intra-U.S.) business from shippers that did not have existing DHL accounts prior to the strike.

-- DHL will make only one attempt to deliver residential shipments, after which these customers are asked to pick shipments up at the nearest service center.

-- Drop boxes and service centers are still open to accept any international shipments.

-- As have other major carriers, DHL has temporarily suspended its service guarantee.

"We hope that the Teamsters and UPS come to a mutually beneficial agreement as soon as possible," said Foley. "In the meantime, we are letting customers know that with our global experience and scope, DHL can deliver their important express parcels, shipments and freight to virtually any international location."

DHL Worldwide Express is the world's largest and most experienced international air express network, linking more than 635,000 cities in more than 220 countries. While DHL is focused on business-to-business international air express transportation, the core business of UPS tends to be centered on domestic and deferred ground transportation services.

DHL Worldwide Express is composed of DHL Airways Inc., which serves all locations in the United States and its territories; and DHL International Ltd. and its agents and affiliated companies, which serve all locations outside the United States and its territories. To order a DHL pickup, call 800/CALL-DHL. Visit the DHL website at http://www.dhl.com .

CONTACT: DHL Worldwide Express

David Fonkalsrud, 415/802-4535