"Just Say Nyet" - Fedex, DHL Suspend Shipments To Russian Customers

Tyler Durden's picture

In the aftermath of earlier comments from White House spokesman Carney that the US is considering sanctions for Ukraine violence, a move aimed squarely at Putin, at least several US private sector companies have decided to take matters into their own hands. To wit:

  • DHL, FEDEX SUSPEND SHIPMENTS TO RUSSIAN CUSTOMERS: REUTERS

Reuters has more:

Express delivery companies DHL and FedEx said on Thursday they had suspended foreign shipments to individual customers in Russia because of stricter customs procedures, making it harder for internet users to buy goods from abroad. DHL will suspend all shipments of goods for personal use to Russia from January 27, the company said in emailed comments, after already suspending most such imports already in 2010.

 

President Vladimir Putin ordered a campaign late last year to "put into order" a booming e-commerce sector. One of the proposed measures was lowering a value threshold for purchases in foreign online stores that are subject to customs duty.

 

According to DHL Express, part of Deutsche Post (DPWGn.DE), Russian authorities from January 2014 expanded the list of documents required to ship goods to individual customers, which has significantly slowed customs clearance.

 

A Moscow call-centre operator for FedEx said shipments to individual customers in Russia were "temporarily suspended". The FedEx press office was not immediately available for comment.

 

According to a draft letter to clients from Russia's Association of Express Carriers, seen by Reuters, other providers such as UPS (UPS.N), TNT (TNTE.AS), and DPD also decided to suspend imports.

And now, it's time for Gapzorm to suspend shipments of natgas to European customers, just as the Qatar-mandated explosions in Sochi are set to begin. And then it gets really fun.

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Looney's picture

What, no more condom contraband? ;-)

Looney

ZerOhead's picture

The lack of fresh iPhone supply could set NSA efforts back for several years...

Pladizow's picture

Introduce Putin Express or perhaps KGB Express!

End the relience on SWIFT and US Corps = No Mas Problemas!

SWRichmond's picture

Full court press against Putin by the West.  The Olympics thing also (as if anyone really cared about the Olympics).

Manthong's picture

hmm.. is DHL West German or East German?

it sure ain't US, and they abandoned their Ohio hub a couple years or so ago.

0b1knob's picture

What percentage of Russian orders use fraudulent credit card numbers?   I've heard estimates that as much as 80% of charges from Romania are fraudulent.   You can expect most east Euro states to be added to the ban soon.

No way the banks are going to be on the hook for the millions of Target card numbers that the hackers are selling right now.

Boris Alatovkrap's picture

Federal Express...? Is no more "federal", than is "Federal Reserve".

walküre's picture

Boris,just heard on Radio Eriwan that the Russian consumers can use Chinese delivery service? PCS? People's Coolie Service? Is not all lost then.

Boris Alatovkrap's picture

Da! Chow mein, sweet and vinegar shrimp, General Tsau spicy hot chicken is popular of immense proportion in Russia, and now is can be deliver to own apartment. You are not also Chinese Delivery Service in America!?

Manthong's picture

Yo, tovarisch..  is good to be learnng both Rooskie and Manderin though this year..

Is most important way to talk on the planet in next few years. 

kashey's picture

You chose wrong person to talk to in Russian, Boris doesn't speak it. Potomu chto on amerikanets.

kashey's picture

Yes, we can, but new Russian customs regulations are applued to all e-purchases from abroad so Chinese will suffer too.

Kirk2NCC1701's picture

And yet they seem just as Patriotic in supporting the Amerikan Oligarks, eh?

Manthong's picture

Da.. but former United States is now Federal Dominion.

giggler321's picture

It's probably more like they want to stop the purchase of Russian made geiger counters, entering country for people to see, at least in a buzz and digits on lcd what's happened to their country.

Manthong's picture

dit.. dit..  dit-dit dit dit dit dit dit dit dit

OMG.. WTF ???

kashey's picture

The author if the article is absolutely wrong, it has nothing to do with sanctions. It is nothing but a form of local market protection + to raise more customs taxes..

Boris Alatovkrap's picture

Mr. Kashey,

Maybe Capital Control is raise custom taxes, maybe is use excuse of local market protection,... but,

Capital Control is about one only thing... C-O-N-T-R-O-L

Libido Dominandi - lust to dominate is sickness

Sincerely,

Boris

kashey's picture

Boris, where are you from? You are obviously not Russian.

Boris Alatovkrap's picture

You are place preposition at end of English sentence...? From where are you come? Obvious not English spoken country.

Manthong's picture

..warm place is good to be..

not here with -20C.

Rhyme I make?

kashey's picture

I'm Russian from Moscow, this is the reason I see you're not Russian. You speak English not the way Russians do.

Wahooo's picture

LOL. Another ass kicking by Vlad is about to happen. Doesn't Obama ever get tired of being raped?

Double.Eagle.Gold's picture

President Obama is perhaps all-time greatest President.

 

He has proven quite clearly parties don't matter; both have same agenda -- promoting their TBTF financial backers.

Time to stop voting and start learning how to plant, harvest, and otherwise provide for ourselves.

ArrestBobRubin's picture

I'm so gonna love watching the Judo throw Pootsie lays on these bankster whoreboy lame-o's. 

Citxmech's picture

How much you wanna bet that there is substantial CIA involvement in any shit that goes down during Sochi?  (Payback for Syria)

CPL's picture

Naw, FedEX and UPS are in big trouble with the airline industry death spiral happening. 

All those brand name people airlines pay a fortune for terminal fees, UPS and FedEX are subsidized by them in return by a matter of accounting tricks.  With the entire airline industry going tits up from a combinations of government legislation, taxation, fuel, salaries, stock issues, outstanding dividend payments.  Basically a complete mess wrapped in red tape with a turd on top.

After 30 years of stick handling an industry poorly with subsidies, kickbacks, bribes and 'awards'.  That stone isn't giving anymore blood, and with the airline industry grounding itself.  That's the start of the end of over night shipping because it is secretly subsidized entirely by the rest of the airline industry. 

Ever wonder why the same package shipped by a postal service is about 5 times higher than FedEX?  You pay for it with every trip somewhere.

Max Cynical's picture

CPL, I beg to differ...

UPS, FedEx and the like don't use the passenger terminals and shouldn't have to pay for them. They pay the same landing fees and fuel surcharges and pay rent to those airports where they have a presence, whether that's a warehouse or just a ramp for loading/unloading.

In addition, the FAA trust fund is flush with cash...

The Federal Aviation Administration (FAA) is funded primarily by the Airport and Airway Trust Fund (Trust Fund or AATF) which receives revenues from a series of excise taxes paid by users of the national airspace system — and by the General Fund.

The Trust Fund's purpose was to establish sources of funding that would increase concurrently with the use of the system, and assure timely and long-term commitments to capacity increases. The Trust Fund was designed to finance investments in the airport and airway system and, to the extent funds were available, cover the operating costs of the airway system as well.

Trust Fund revenues are derived from excise taxes on:

  • Domestic airline passenger tickets
  • Domestic airline passenger flight segments
  • International passenger arrivals and departures
  • Air cargo waybills
  • Aviation fuels
  • Amounts paid for the right to provide mileage awards

At the beginning of FY 2012 the Trust Fund had a cash balance of $10.3 billion.

CPL's picture

Paying Peter to pay Paul to pay off Fred.  So I missed adding graft and over surcharges in the list of other boat anchors sinking the airline industry to the bottom.  The fact the slush fund exists to buttress about six layers of slush funding should have been the first indication that the industry was in serious trouble.  Seriously how difficult is it for a company to do something crazy...like 'make a profit' and balance that against costs.

Instead the airline industry would make a bookie puke up their shoes for the amount of questionable accounting tactics used to maintain the illusion it's functional as a business and industry.

To add salt on the rest of the industry's wounds.  FedEX and UPS haven't paid their fair share of their responsibility to actually fly in the sky.  The package delivery industry eclipses all airline industry subgroups.  It's larger than any air force on the planet, just like Walmart is the largest supply chain provider in the world.  And like Walmart the pundits and lobby groups leverage that to bully the terminals, fuel and insurance industries to pass costs to other people. 

To put it in perspective the USAF pays more for the privilege to pay fedEX and UPS to deliver iPods.  And here's the sad thing.  They OWN their own tarmacs and towers...and they bleed out money like water through a sieve every minute of every day.

So my disbelief in fedEX and UPS's profitability is only reflected in the fact industries and government agencies surrounding them are getting run into the ground by reality.  Which leave the only other option, which is the round about way those companies fund the delivery industry by proxy of dozens of other revenue venues.  It's plain as day that it's happening. And it's not only completely unbelievable that they are profitable without subsidization. 

It would be naive to believe that they operate any lower in costs than the rest of the industry which is punished daily by a single operating requirement of fuel to fly those packages around the world 24/7/365.  The square peg only goes in the round hole when you hammer really hard, not because someone says it does.

This should highlight the other problem, because of the economic framework that's holding the entire aeronautical industry together.  It has taken very little to demolish it to this point.  Not because it was planned that way.  Quite the opposite, if it were planned, then it wouldn't happen.  Instead the usual culprits of stupidity and it's universality of greed helps overlook things like safety, functionality and after a while, usefulness.

Just look at the rail industry.  Took a single consolidation of most rail lines over the past 15 years under a single umbrella.  This just after decades of cutting people and standards.  Today we have things that should never be transported over rail being transported through communities of people.  "Small items" like breaks and engine repairs are over looked to shave another dime from moving products and people from point a to b.  2013 what a record year for trains falling off tracks, and every post inspection report.  Breaks, breaks, breaks, training, breaks again, Engine not replaced under spec.  All the accidents completely avoidable if processes had been followed to the letter.  But they weren't.

Same clowns are starting on the airline industry.  Believe me, it'll be a blessing in disguise with fewer flying gas cans weighing hundreds of tonnes of stone weight aren't going over head.  If it's run the same way as the train industry, which is infinitely more useful and more efficient than planes.

The world will lose the entire aerospace industry for the exact same reason it'll lose the train industry.  Blind, ignorant, useless greed.  I know it sucks, but bed is made and people best find another way to deliver goods to market as soon as possible.

Buck Johnson's picture

It looks like we are getting ready for a world war to begin from  the Sochi attacks that will happen to Ukraine etc. etc..

Agent P's picture

I thought DHL was German?

Looney's picture
So, let's see... Something (good or bad) is going on in Ukraine and, because of THAT, shipments to Russia are suspended? Hmm...   "If you want your shipment, you can keep your shipment"   Looney
kashey's picture

No, customs taxes constitute big part of Russian budget revenues, so it's nothing but previously untaxed import into taxed import zone.
It's absolutely internal Russian move, nothing to do with Ukraine or any sanctions.

Tinky's picture

Germany's main postal system is Deutsche Post DHL

Agent P's picture

And DHL (DHL Express) is a subsidiary. 

Kirk2NCC1701's picture

Of course DHL is German.  You should also know by now that German love to bow down (cowtow) to all forms of Authority.  Post-war conditioning by the Allies has ensured that the Germans ask "How high", every time we say "Jump".

No longer are Germanic Tribes (Allemanns, Bavarians, Franks, Sachsons, Schwabs, Teutons) the fiercely proud, strong and independent tribes of the Roman era.  Where the Romans failed, the Christian Church succeeded.  Centuries of conditioning and breeding by the German aristocracy and the Church has ensured the Germans' "love of compliance" (PC term for "...just following orders").  They even have an official word for it: Obrigkeit Bewusst ~ Authority Awareness.

cossack55's picture

Can't the Russians buy their cheap Chinese shit direct from China?  They can just take a train to the border and screw DHL.

americanspirit's picture

Cossack55 - the border with China is 7-8 times zones away from the major Russian cities and there is one train - occasionally.

Ignatius's picture

We call that "an opportunity".

Grande Tetons's picture

Where is Boris with his commentary? 

Looney's picture

Securing Sochi? ;-)

Looney

kralizec's picture

Maybe he worked for Fedex or DHL and just got laid off!

oddjob's picture

Boris watch rerun of Castaway on Russian repeatflix for local take.

kashey's picture

Boris is in the US. He's an American troll trying to look like a Russian. Russians are quite proficient in grammar but lack vocabulary of English.

IrritableBowels's picture

I suppose you also think that santa claus and the tooth fairy aren't real?

 

EDIT: Or that his last name isn't really "Alotovkrap"...

From the Navy Pipeline: MOTO- 'Master of the Obvious'

kashey's picture

Hands off Santa!
You Americans have nothing left to believe to....
As for Boris, I wouldn't mind if he played Russian, but if he did it not in a clown way. It's a matter of principles.

Gene Parmesan's picture

Escalation is the name of the game from here on out.

Joebloinvestor's picture

Suspension of all deliveries except phones and computers which were intercepted and had bugs installed in.

 

Thanks for the "heads up" and the ANT catalog Ed!