DHL Express: we expect a healthy increase in demand for express services in the fourth quarter
DHL Express is investing more than EUR 100 million in transport and handling capacity in the fourth quarter.
The aim is to meet the increasing demand for express services during the traditional peak season at the end of the year and to support the growth of its customers. As part of the ongoing modernization of its air freight fleet, DHL Express will successively put eight new Boeing 777 freighters into operation and, despite ongoing uncertainties in the global economy, expand its air freight capacities and expand its international parcel sorting and delivery network. With an expected growth of 8.8% in 2024, global e-commerce remains a driving force for volume growth, while B2B shipping volumes are gradually recovering.
John Pearson, CEO of DHL Express, said: “We want to be their partner of choice during the year-end peak season, which is economically significant and operationally demanding for many of our customers. Our flexible international network offers a high quality of service and reliable access to sufficient capacity, allowing companies to respond to changes in demand in real time. In addition, our digital tools improve the customer experience and last-mile pickup and delivery. Given the continued volatility in global freight markets and strong e-commerce volumes, we expect a healthy increase in demand for express services in the fourth quarter. We are making targeted investments to maximize the resilience of our global network and enable our customers to have a successful peak season in 2024.”
Investment in cargo capacity and more fuel-efficient aircraft
DHL is investing in its air freight capacity in the fourth quarter of 2024 and is expanding its fleet with additional large and medium-sized long-haul aircraft as well as additional flights with existing aircraft, especially on intercontinental routes. The company expects high volume increases during the upcoming peak season, especially on routes out of China.
DHL is investing in eight new Boeing 777 freighters for transpacific and intercontinental routes between Asia and Europe. This will not only expand capacity on these important routes, but will also continue DHL’s transformation to greener transportation with newer, more energy-efficient aircraft. In addition, the company has already invested in additional handling and sorting capacity across its ground network, including its hubs in Copenhagen, Cologne, Paris, Atlanta, Brussels and East Midlands (UK). This can make flight schedules more flexible and create opportunities to reroute cargo, especially in the event of high demand or possible disruptions in the supply chain.
Of course, DHL Express remains true to its long-term commitment to emission-reduced transport. In addition to the continuous renewal of the global aircraft fleet, this also includes the design of new buildings with a view to CO2 neutrality. DHL Express was the first global courier service to offer its customers the opportunity to reduce the GHG emissions associated with their shipments by using DHL GoGreen Plus. Through cooperation with partners such as World Energy and Neste, SAF (Sustainable Aviation Fuel) is used proportionately in DHL Express’ aircraft fleet to reduce CO2e emissions. Based on the book-and-claim system, the savings achieved (Scope 3) are passed on to customers in the form of certificates.
E-commerce remains a growth driver
In addition to the gradual recovery in B2B shipping volumes, e-commerce is expected to be a driving factor for volume growth on other intercontinental routes between Asia-Pacific, Europe and the Americas. Although the numbers have now adjusted to pre-pandemic predictions, e-commerce sales are expected to grow by a further 8.8% in 2024 and also account for an increasing share of total retail sales. Thus, e-commerce continues to be a vital and growing driver of the global economy. Current challenges such as geopolitical tensions and trade barriers have led to a reorganization of supply chains, but have not limited the specific dynamics of this sector.
