Tag: DHL

DHL looks to expand overseas shipments from the U.S.

Posted by | Mar 8, 2007 | |

Deutsche Post’s DHL is looking to expand overseas shipments from the United States, a senior U.S. manager said.

James Cameron, executive vice president of operations, said Plantation-based DHL has posted a ”slight uptick” in U.S. package volume. However, he added, DHL doesn’t necessarily want to be as big in the United States as FedEx and UPS. ”The scope of what we have is nowhere near the two big giants in the U.S.,” said Cameron.

DHL, a unit of Deutsche Post, Europe’s largest postal service, has spent more than $2 billion in the United States since 2003. DHL said in December it didn’t expect to break even in the United States until 2009.

DHL held about 2 percent of the U.S. ground delivery market at the end of 2006, with UPS controlling 68 percent and FedEx with 18 percent, according to Rick Paterson, an analyst with UBS Investment Research in New York. The U.S. Postal Service and other firms have the rest.

Deutsche Post, based in Bonn, labeled DHL’s U.S. unit its ”weakest performer” in December.

”DHL just does not compete with FedEx and UPS when it comes to service and reliability,” Daniel Ortwerth, an Edward Jones & Co. analyst in St. Louis, said. “The U.S. customer just does not tolerate that.”

Satish Jindel, president of Pittsburgh-based SJ Consulting, said he expects DHL to stick with its strategy of retaining the business it has already won in U.S. ground shipping for at least the next two years, until it is profitable.

DHL’s U.S. division has more than 21,000 employees and contracts for its air lift with closely held Astar Air Cargo, based in Miami, and ABX Air, based in Wilmington, Ohio. As a foreign-owned company, DHL is prohibited from owning a U.S. airline.

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Boeing to supply six 767 freighters to re-fleet DHL U.S. Operations

Posted by | Mar 8, 2007 | |

Boeing and DHL agreed on an order for six 767-300ER (Extended Range) Freighters. DHL, wholly owned by Bonn, Germany-based Deutsche Post World Net, is a leading international express delivery and logistics company. The order is valued at USD 894 million at list prices. This order has previously been accounted for on Boeing’s Orders & Deliveries Website.
“Adding the wide-body 767 Freighter to our network allows us to grow our business considerably,” said John Mullen, CEO DHL Express. “This acquisition will support the DHL Express strategy with particular emphasis on renewing and updating the network supporting operations that serve the U.S. market.” DHL has successfully established a solid number 3 market position in the U.S. and is striving to expand its overall leadership in the global express business.

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Hong Kong base gives speed edge for EMC

Posted by | Mar 6, 2007 | |

EMC Corp, whose computer storage devices are used as part of telecommunications systems from mainland firms Huawei Technologies and ZTE, yesterday opened its Asia-Pacific logistics centre in Hong Kong.

The new operation, backed by DHL Exel Supply Chain, will help to speed up shipments for EMC’s mainland original equipment manufacturing partners and its other customers in the region.

The EMC Asia-Pacific and Japan Supply Chain and Logistics Centre in Tsuen Wan is under the management of DHL Exel Supply Chain, a unit of global express and logistics firm DHL.

Mr Yip said improving delivery cycles for EMC products was geared to meet the time needs of the company’s mainland OEM partners – including Huawei, ZTE and Inspur, formerly the Langchao Group.

Dell Computers develops co-branded EMC storage systems in Xiamen exclusively for the mainland.

EMC, which started commercial operations on the mainland in 1996, will expand its regional supply chain and logistics facility in the second half of this year.

According to research firm International Data Corp, the mainland continues to be the major contributor to the Asia-Pacific, excluding Japan, in terms of storage hardware demand. External disk storage revenue on the mainland in the third quarter of last year reached USD168.6 million, which accounted for 33.2 per cent of the total market – worth USD507.7 million – in the region, excluding Japan.

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Seoul to speed up business approval in Incheon airport FEZ

Posted by | Mar 6, 2007 | |

South Korea said Tuesday that it will revamp business authorization guidelines to help domestic and foreign companies invest more easily in the Incheon International Airport free economic zone (FEZ).

The airport FEZ is one of the free economic zones Asia’s third-largest economy is pushing to develop as part of efforts to become a business hub in Northeast Asia.

“The change, to go into effect in April, will make it easier to build logistics terminals at the airport zone,” the Ministry of Construction and Transportation said.

Once the overhaul takes effect, the approval process will be shortened to about six months from the current period of up to one year, it said.

The free economic region, located 40 kilometers west of Seoul, covers 34,141 acres and will be developed by 2010. It includes a bonded area where various taxes and customs duties are exempted. Seoul wants to build a large logistics center that can become a logistics hub in Northeast Asia.

The ministry said the revamp will make it easier for foreign companies such as DHL, the logistics unit of Germany’s Deutsche Post AG, to build a large air cargo terminal at Incheon and for local companies to set up operations in the area.

DHL said on Feb. 12 that it will invest USD75 million by 2020 to build a terminal that can handle 7 million tons of air cargo a year.

The airport zone is part of a larger FEZ covering the Songdo and Cheongna areas of the port city. According to a government plan, the regions will have a population of 2.6 million people and accommodate 7,600 companies.

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DHL Slovakia turnover up 18%

Posted by | Mar 5, 2007 | |

DHL Express Slovakia has reported turnover up 18% to over SKK 1 billion (EUR 29 million) last year, with the number of international shipments increasing by 12% to around 200,000.

Laurenc Svitok, DHL Express Slovakia CEO, told the Sita news agency the growth was due to the carrier offering a broader range of services, as well as a stronger Slovak economy and higher foreign investment.

Last year, DHL opened three new facilities in the country at Banska Bystrica, Ruzomberok and Kosice, Sita said.

According to a CEP-Research study last year, the Slovakian courier, express and postal market was worth EUR 65 million, which would make DHL the clear market leader among foreign carriers.

Slovakia is yet to realise its potential as an express market, however, despite its location between neighbouring Austria and the larger Czech and Hungarian economies, the study said.

Driven by EU accession, central and eastern Europe markets are now achieving above-average GDP growth rates, attracting international investors and generating new flows of imports and exports.

Annual express market growth rates of 30% or more are not uncommon in many countries in the region.

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