Tag: DHL

ABX to renew with DHL

ABX Air will renew its hub and line haul services agreement with DHL.

The contract has an automatic one year renewal clause set for Aug. 15 if neither party cancels at least 90 days before the anniversary date. ABX Air, a subsidiary of the recently renamed Air Transport Services Group, provides sorting, maintenance, and other logistics services in support of DHL’s express package network in the United States, including management of DHL’s national sorting center in Wilmington, Ohio, and 15 of its regional sorting centers across the country.

ABX Air earns base markup revenues equal to 1.75 percent of eligible expenses it incurs under the agreement, and can earn additional markup revenue based on its performance against certain cost and service goals. In 2007, ABX Air’s revenues were $317 million, and its pretax earnings were USD 7.6 million, from services provided under this agreement.

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Fahy leaves DHL Global Forwarding

DHL Global Forwarding’s President and Chief Executive Officer, Chris Fahy, has reached an agreement to leave the company.

On 4 March, Herman Ude was appointed to run the newly combined Global Forwarding and Freight business unit, effectively taking over Fahy’s role within the company. Ude previously headed up the Freight business unit.

In further moves, former Managing Director Marketing & Sales for DHL Express Europe, Thomas George, has been appointed by Ude to take over the running of the loss-making Freight business unit on his behalf.

In addition, DHL’s Global Customer Solutions Chief Executive Officer, Rolf Habben-Janse, has resigned from the company to join Maersk Logistics/Damco, as its new Chief Executive Officer.

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DHL/Blue Dart aviation to start direct services on Kolkata-Dhaka route news

DHL Express (India) Pvt Ltd, in association with Blue Dart Aviation, is planning a direct link between Kolkata and Dhaka in a bid to compete with the unorganised express and logistics sector in SARRC countries. The new service is likely to become operational in approximately two months time.

The new route will reduce time and costs for DHL, for earlier the cargo would travel to Dhaka from Kolkata, via Singapore.

“Blue Dart Aviation would run a direct flight to Dhaka in two months time and this would help bringing down our cost by at least 20 per cent in addition to the transit time,” said Craig Grossgart, vice president, DHL Express (India) Pvt Ltd.

According to the company, the cost benefits would be passed on to the customers enabling a lower product cost. “Earlier we couldn’t compete with the unorganised nature of the sector in this part, but now we can compete with anybody, as the pricing would be more competitive,” Grossgart said.

Eventually, the company plans to venture into other SAARC nations, particularly Pakistan and Sri Lanka.

The new scheme is undergoing pilot tests and may be launched soon. Keeping these plans in mind the company has inaugurated a 16000 sq ft, new state-of art facility at Kolkata.

Meanwhile, Blue Dart will add one more Boeing 757 cargo aircraft to its fleet by the end of the year. Currently the company operates a fleet of seven aircraft, of which three are Boeing 737 and the other two Boeing 757s.

DHL Express holds a 81 per cent stake in the Chennai-based air cargo company.

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Deutsche Post World Net: First quarter on target

Deutsche Post World Net started the year of 2008 with solid performance in the first quarter: Underlying EBIT rose 6.4 percent to around 1 billion euros, meeting the Group’s own targets. That was despite the fact that the quarter had two working days less than the year-earlier period.

Reported EBIT declined 14.7 percent to 851 million euros due to non-recurring expenses at Deutsche Postbank tied to the crisis on the financial markets. Revenue totaled 15.7 billion euros, up 1.8 percent from the year-earlier period, excluding negative currency effects the increase was around 6 percent.

Deutsche Post World Net is aware of the uncertainties in the world economic development. Even so, at this point in time, the Group has no reason to change its full-year earnings forecast of around 4.2 billion euros in EBIT before non-recurring effects and around 3.2 billion euros in pretax profit.

The MAIL division projects EBIT of around 1.95 billion euros for 2008. The EXPRESS division is expected to generate EBIT of around 500 million euros, while the LOGISTICS division is scheduled to increase EBIT to around 1.05 billion. The FINANCIAL SERVICES segment projects EBIT of around 1.2 billion euros. A loss of around 550 million euros is forecast for Corporate Center / Other.

The guidance of around 4.7 billion euros in EBIT before non-recurring effects for 2009 has also been reaffirmed.

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DHL trials new eco vehicles (UK)

DHL Exel Supply Chain is offering retailers within its UK Fast Fashion Network the opportunity to trial its latest electric vehicle, a specially fitted nine tonne Smith Newton truck.

The vehicle runs on four batteries, which are recharged while in use through braking, with each providing up to 100 miles. It has a top speed of 50mph and is designed for city centre operations where roads are busy and there is a lot of stopping and starting involved.

The new truck had its first three-month trial with Burberry Retail UK, delivering to its central London, West End and Heathrow stores and there are plans for further trial to take place with Ben Sherman and Selfridges towards the end of the month.

Although more expensive to run, the low emission truck is exempt from the London Congestion Charge, London parking costs and the road fund licence.

The move comes as DHL aims to improve the carbon efficiency of its operations by 30 per cent by 2020 and follows the introduction of its first fully electric vehicle last year.

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