Released: June 19, 2008

Overnight delivery becomes a luxury

Source: Ronald D. White, L.A. Times (Free Registration)

Sometimes it doesn’t absolutely, positively have to be there overnight.

Budget-conscious shippers are deciding their packages and envelopes can take a slower path to their destinations, going by second-day air or, even slower, by truck. Some businesses are just plain sending less.

The changing outlook has altered the way the Big Three express delivery companies compete for air and ground shipments. It’s also pushing DHL Express into the arms of a rival, probably bringing layoffs to DHL’s 350-employee West Coast air hub in Riverside County.

“Customers are definitely trading down to cheaper services,” said Norman Black, spokesman for Atlanta-based United Parcel Service Inc. “The stagnant economy is affecting almost all of our business customers, and when business slows down, they don’t have as much to ship.”

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