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DHL, UPS contract talks continue

A service contract between shippers DHL and UPS is still being negotiated, both companies confirmed, but did not say when a deal might happen.

DHL and UPS have been nego­tiating an agreement under which UPS would provide air transport services for DHL’s North Ameri­can business for 10 years. Two independent airlines currently provide those services.
“We are still in negotiations,” said Malcolm Berkley, a spokesman for UPS. “We have no comment on a timeline (for the negotiations).”

A DHL spokesman also confirmed the negotiations are ongoing.

The contract negotiations have continued for much of the past year, even after DHL announced that it will discontinue its US-only air and ground services, resulting in the loss of 9,500 jobs.
If the contract is finalized, UPS would only ship DHL’s interna­tional shipments from their US landing points to their ultimate US destinations. The proposed contract also had come under scrutiny by some members of the US Senate, who said it might vio­late antitrust laws, or precipitate a merger. Both UPS and DHL denied those allegations.

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