In the wake of a major legal battle between DHL Worldwide Express and United Parcel Service (UPS), former DHL chairman and CEO Patrick Lupo lashed out at UPS over its “monopolistic” position in the North American express delivery market.
“UPS has a monopoly position in the world’s largest economy,” said Lupo this week at the 10th Annual Aviation Symposium, a global forum of aviation executives in Phoenix. He expressed “serious concern” about UPS’s dominant position in the U.S. ground delivery market and its impact on the global parcel/express delivery market.
Lupo cited a recent U.S. Department of Transportation (DOT) order indicating that UPS has 53% of the domestic U.S. parcel/express delivery market and almost 80% of the domestic U.S. ground delivery market, far outpacing its competitors.
He added that a DOT ruling issued last Friday dismissing a petition brought earlier this year by UPS that sought to revoke DHL’s license to conduct foreign air freight forwarding in the U.S. is an example of anti-competitive practices by UPS.
“Such extraordinary concentration poses considerable dangers to the shipping public,” Lupo said, citing repeated price increases by UPS and operating margins of 16% in the U.S. ground business -- more than double the industry average.