DHL launch LCL service from Hong Kong to Brazil

DHL has announced the launch of its new direct LCL weekly service from Hong Kong to the rapidly growing port of Paranagua, Brazil. The LCL (Less than container Load) extension is aimed at enhancing connectivity and trade from the Greater China region to key cities in Brazil.

The launch of Hong Kong – Paranagua route is an addition to DHL’s existing direct LCL services from Hong Kong to Santos and Manaus in Brazil. DHL is the first major logistics company to offer direct services to Paranagua, Brazil’s largest port for shipment of grains and its second biggest maritime terminal. Paranagua is also a key destination as it offers easy access to inland cities through established road and rail networks.

Despite the global economic crisis, several sectors of the Brazilian economy have remained relatively resilient with its sizable domestic market and potential for growth. In October 2009, Brazil’s Central Bank released a market survey anticipating 0.1% growth of GDP in 2009 amid the global economic downturn. Given the optimism towards emerging economics, businesses are continuously investing in these markets.

According to Hong Kong Trade Development Council, Brazil is Hong Kong’s second largest export market in Latin America, only after Mexico. Total exports to Brazil amounted to $1,645m in 2008, grew by 24%.

“As businesses remain cost-conscious without sacrificing service quality, LCL services remain an ideal option,” said Kelvin Leung, CEO, DHL Global Forwarding, North Asia Pacific. “At DHL, we are committed to helping customers stay ahead of the game. The launch of this vital link from Hong Kong to Paranagua, one of Brazil’s key ports, continues to enhance our leading position in the industry as an LCL service provider.”

Since the start of the year, more than 20 direct LCL routes have been launched connecting Asia Pacific to ports globally, from Shenzhen to various cities in Europe, North America and Canada. Operated through Danmar Lines, the in-house carrier of DHL Global Forwarding, the launch of the new Hong Kong to Brazil routes will enhance trade links from Asia Pacific to the rest of the world as customers can now send shipments directly to Paranagua.

Edward Hui, managing director, DHL Global Forwarding, Hong Kong, Macau and South China, said, “DHL constantly provides the best-in-class services for our customers to access new markets more efficiently. We will continue to build comprehensive LCL services to align with Hong Kong and South China’s efforts to build robust ports for handling shipments and trading.”

The new service goes beyond port-to-port and at the same time enhances efficiency by reducing transit time between Hong Kong to Brazil to 34 days, the fastest compared to current available services. By using a direct dedicated service for shipments into Paranagua, Brazil cargo risks are also reduced as no re-handling is required. DHL’s Track & Trace, offers full visibility of cargo throughout the shipment process, ensuring customers greater peace of mind. Businesses using DHL’s LCL services also enjoy end-to-end supply chain management, which includes pick-up at origin, consolidation and deconsolidation, delivery at destination and customs clearance.

Clas Thorell, head of LCL Management Asia Pacific, DHL Global Forwarding, said, “The launch of the new Hong Kong – Paranagua direct LCL service demonstrates our commitment to delivering innovative logistics solutions for our customers. Our LCL business has been seeing positive growth amid the slowdown and we are confident that this will remain a priority service for our customers.”

The new service marks the 22nd new route that DHL has launched this year in Asia Pacific alone. DHL currently operates the world’s largest LCL network with more than 2,000,000 cubic metres of LCL freight handled annually. The new routes launched this year include:

· Chennai (India) to Felixstowe (UK)

· Shenzhen (China) to Hamburg (Germany); Genoa (Italy); Southampton (UK); Rotterdam (The Netherlands); Antwerp (Belgium); Le Havre (France) and Vancouver (Canada)

· Tokyo and Yokohama (Japan) to Chicago (USA)

· Bangkok, (Thailand) to Los Angeles (USA); Hamburg (Germany) and Tokyo (Japan)

· Shenzhen (China) to New York (USA)

· Port Kelang (Malaysia) to Los Angeles (USA); Shanghai (China) and Hamburg (Germany)

· Jakarta (Indonesia), to Los Angeles (USA) and Hamburg (Germany)

· Ho Chi Minh City (Vietnam), to Hamburg (Germany); Genoa (Italy) and Los Angeles (USA)