I believe that the major realignment undertaken by DHL is a first move in what will become a general retreat from the US domestic express business. While it may stop the bleeding, the service reductions have no upside and are meant to buy time as the company considers what will be it's lasting configuration in the US transportation market.

I would suggest that they are on the road to what will be a pull back into a gateway centered export/import cargo operation serving the US and it's worldwide markets. This has been their core competency since the acquisition of Air Express International, AEI, several years ago.

Executing an effective business plan following the acquisition of the already failing Airborne Express (ABX) proved to be more complicated than expected. The revenue per package just wasn't there to support the network and the efforts to grow the business in this mature market. It's almost reminiscent of the disastrous Emery/Purolator debacle of the late 1980's.

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