DHL Express: strengthening Singapore’s position as a major air cargo and e-commerce logistics hub
DHL Express has signed a CM (Crew & Maintenance) contract for five Boeing 777 freighters with Singapore Airlines (SIA). This agreement is a further step in the expansion of DHL Express’ intercontinental air freight network to meet customer demand in the fast-growing international express shipping markets.
“With the provision of five Boeing 777 freighters, we can expand our express service between the Asia-Pacific region and the Americas. We are optimistic about growth on the trans-Pacific trade routes after the pandemic subsides. We see working with Singapore Airlines as a unique opportunity to build a long-term relationship with a long-standing partner who shares our values and meets the highest quality standards,” said Travis Cobb, EVP Global Network Operations and Aviation at DHL Express.
The cargo planes will be stationed at Changi Airport in Singapore and will serve DHL’s South Asia Hub there. They are painted in two colours and bear the lettering of DHL and SIA, are flown by SIA pilots and serve routes to the USA with stopovers in North Asia. SIA will also take over the maintenance of the aircraft.
The original agreement has a term of more than four years with the possibility of renewal. Under the terms of the contract, the first aircraft is to be delivered in July 2022 and the second in October 2022. The remaining three machines are expected to be ready in the course of 2023.
Lee Lik Hsin, Executive Vice President Commercial at SIA, said: “With today’s agreement, SIA and DHL continue to expand their long-standing partnership. These new cargo aircraft will support the fast-growing e-commerce segment, as well as other key business segments that rely on DHL’s world-class express services. In addition, SIA and DHL are paving the way for further expansion of their partnership in the future. The stationing of these aircraft at Changi Airport will strengthen Singapore’s position as a major air cargo and e-commerce logistics hub and contribute to the country’s growth and development.”
“This new agreement guarantees additional capacity on our critical routes out of Singapore, enabling us to keep pace with the continued growth of trade in the Asia-Pacific region,” said Ken Lee, CEO of DHL Express Asia Pacific. “It gives us greater flexibility to add new routes and optimize the utilization of our aircraft in the face of unpredictable changes or a sudden surge in demand.”
DHL Express continues to invest in its fleet to keep pace with the steady growth in cross-border, time-critical shipments. The company operates more than 320 of its own aircraft in its global network, which includes 220 countries and territories. The Boeing 777 aircraft are the largest, longest-range and most powerful twin-engine cargo aircraft in the world. By reducing CO2 emissions by 18 percent compared to old B747-400 freighters, they will also contribute to DHL’s sustainability goals.
SIA’s cargo division flies to more than 90 destinations in its existing network and, in addition to its own fleet of cargo aircraft, also uses the cargo hold of SIA and Scoot passenger aircraft. As part of its fleet renewal programme, the airline recently ordered Airbus A350F freighters. Due to the high demand, boosted by the growth of segments such as online retail, fresh products and pharmaceuticals, SIA continues to invest in the expansion of its freight capacities.