DHL, Northwest in alliance
DHL Worldwide Express said Monday that it has formed an alliance with Northwest Airlines that will enable it to offer faster transit times and improved delivery options to Asia.
Under the agreement, DHL will have priority rights to capacity on Northwest’s new freighter flights between Asia and Cincinnati, scheduled to begin July 16. The new service will cut transit times by as much as one day between Asia and the Midwest, according to Jim Friedel, president of Northwest Airlines Cargo.
“It’s a great fit for both companies,” said Jeffrey Corbett, senior vice president of DHL. He declined to say how much space DHL will guarantee Northwest that it will take on the flights.
DHL will use the Northwest flights to serve customers east of Denver, who account for 70% of its traffic to Asia. Customers west of Denver will continue to be served through DHL’s West Coast gateways in San Francisco and Los Angeles.
Northwest will use two newly-acquired 747 freighters for the Cincinnati service. The aircraft will depart from Asia, Monday through Friday, arriving in Cincinnati the same day at 11:35 p.m. The aircraft will turn and depart for Asia, Tuesday through Saturday at 5 a.m., arriving in Tokyo at 9:35 a.m. the next day. Corbett said this will enable packages on the flight to make the morning sort in Tokyo.
The alliance gives DHL will get a direct link to Asia from its Greater Cincinnati/Northern Kentucky International Airport hub, enabling it to compete more effectively against FedEx and United Parcel Service, both of which offer substantial trans-Pacific services using their own aircraft. DHL does not operate any flights of its own between Asia and the U.S. but claims that it has a 34% share of the Asia-Pacific express market. In DHL, Northwest gets a steady customer, which should help shore up traffic amid plummeting volumes for traditional air freight.
“Being a wholesale partner with an international express company like DHL is a great addition to our strategy of partnering with freight forwarders, and enables us to open a new gateway in Cincinnati,” Friedel said.
Corbett said DHL will use Northwest flights from Tokyo to serve Hong Kong, Taipei, Manila, Bangkok, Singapore, Beijing, Shanghai, Kuala Lumpur and Seoul. Among the industries expected to use the new service are fashion and apparel; computer software and hardware; technology; telecommunications; medical equipment; pharmaceuticals; auto; machinery and equipment.
“In terms of importance, Asia generates more international trade activities for the U.S. than any other region in the world,” Corbett said. “Our alliance with Northwest Airlines Cargo is an important part of DHL’s on-going initiatives in this key region.”
DHL said it acts as its own licensed customs broker from most of its gateways. This results in faster deliveries while preserving the integrity of shipments by restricting handling to DHL personnel.
