Transportation Dept. won’t block UPS-DHL deal

DOT rejects request by Ohio governor

By Dave Hannon -- Purchasing, 9/3/2008 11:33:00 AM

The proposed air freight outsourcing deal between DHL and UPS will go forward as planned, now that the U.S. Department of Transportation (DOT) decided the deal does not constitute an unfair practice.

The Dayton Daily News in Ohio, where DHL’s air freight operations are based, reports that U.S. Department of Transportation Secretary Mary Peters, in an Aug. 15 letter to Ohio Gov. Ted Strickland, also indicates the Transportation Department’s regulations do not impose restrictions on a foreign air freight forwarder‘s choice of U.S. carrier to transport cargo.

"While I understand your concerns over Deutsche Post AG's proposed restructuring of DHL, it is our view that this restructuring would not constitute an unfair or deceptive practice or an unfair method of competition," Peters wrote in her letter. "The department's regulations do not impose restrictions on a foreign air freight forwarder's choice of U.S. carrier to transport its cargo."

See also: DHL-UPS deal shakes up the small parcel market