DHL tweaks offerings to beat slowdown

DHL are now offering schemes that increase delivery time but are cheaper for the customer.

DHL are now offering schemes that increase delivery time but are cheaper for the customer.

The global slowdown is taking a toll on courier companies. In air freight, the Asia Pacific market has seen a contraction of 28% so far this year against a growth of 37% in 2008.

During this period, growth in India was less than 1% against robust increases in the previous years.

However, the good news is that the slowdown has led to a fall in fuel prices, which the industry has passed on to consumers.

“There are customers who are now prepared for consignments to be delivered by road or a mix of road and air rather than the overnight delivery through air that used to be preferred during the boom times. The price for delivery by road transport is much lower,” an industry source said.

Malcolm Monteiro, senior vice-president and area director (South Asia) DHL, said the company had come out with cheaper schemes.

DHL and its arm Blue Dart have launched the Road Express scheme.

“Many customers are increasingly opting for Road Express,’’ Monteiro said. “The consignments take more time, but customers gain in terms of lower prices and reliability of delivery,” he said.

For overseas consignments, DHL has introduced Economy Select, which is not the typical overnight delivery product. “The Economy Select is comparatively a little slow, but it’s reliable,’’ Monteiro said.

Blue Dart recently announced 25 initiatives, which will be rolled out in a phased manner over the next year.