DHL's SE Asia Operating Costs Up 4%

Courier company, DHL Worldwide Express’ operating costs in South-East Asia has increased by 4 per cent due to higher crude oil prices. Globally, its operating costs jumped by 1 per cent. Though the percentage may seem insignificant, it could still hurt the company’s profit especially in the South-East Asia as it uses commercial aircraft for its operation. DHL area director for South-East Asia, Bryan Jamison, said the company is taking measures to curb the effect from affecting the company’s revenue for the current financial year. Crude oil prices stands between US$26 (US$1 = RM3.80) and US$28 per barrel from about US$24 per barrel early this month.” Business Times: “DHL, which own a fleet of over 260 aircraft, currently used commercial airlines services for its operations in the South-East Asia. In Malaysia itself, the courier company used the Malaysia Airlines System Bhd and Transmile Air Services Sdn Bhd services. Despite the 4 per cent increase in operating costs, DHL plans to increase its sales by 14 per cent this year, by introducing express services for critical situations. Its potential clients include government and private hospitals, stock exchange and government department. ‘We view Malaysia as one of our potential market for development and they are now in the list of our top five market in South-East Asia,’ he said. The other four top markets in South-East Asia include India, Indonesia, Thailand and the Philippines. The company has also upgraded its delivery system worldwide and is now capable to offer services from mail delivery to freight and sea delivery. On the international front, Jamison said DHL is the first international company being granted a licence to operate and offer express services in Afghanistan. It has commenced operations last week. ‘By doing so, DHL is proceeding with its international strategy of expansion into new markets in direct response to our customers’ present and future needs,’ he said.” (Source: Business Times, Zety Fazilah Baharuddin)