In 2005 DHL controlled by Deutsche Post World Net plans to set up its own terminal worth EUR9.5mln with an area of 10,000 square meters in Moscow. Besides, DHL targets to construct terminals in St.Petersburg and Samara. A total of EUR20mln will be invested in these projects. The above-said terminals are designed for receipt and handling of foreign and domestic cargo that will be delivered to Russian regions.
Read MoreLow-cost Chinese delivery companies are increasingly trying to take on global express carriers such as DHL and FedEx in China. Companies such as Golden Monkey Express, a Beijing delivery service, are strengthening their international network and beefing up services at home. Pony Express, which is also based in Beijing, even boasts an online track-and-trace service through a partner company. China Post’s EMS service and global express groups such as DHL, FedEx and UPS still handle the bulk of international shipments in and out of China. However, as foreign executives look to the domestic Chinese market, the low-cost delivery services are said to be making their mark. “(China has) this exploding market of little players . . . We’ve got a lot of very small, very aggressive people entering the market,” John Mullen, chief executive for Asia Pacific at DHL Express said.
Read MoreDomestic parcel rates may not be moving up very quickly, but shippers can expect to see surcharges in the coming year, says James Valentine, a senior analyst with equity research firm Morgan Stanley.
Based on a recent survey of parcel shippers, Valentine sees overcapacity holding rates down–shipper expectations are for a 1.2percent rate increase from UPS ground and a net decrease of 0.3percent from FedEx ground. However, there is currently no ground fuel surcharge, but this could easily change in 2005, Valentine states.
FedEx has been growing its ground business at 10percent per year, says Valentine, and now DHL has expanded its presence in both the ground and air parcel segments. UPS as well has grown its air business, a market which Valentine says is only increasing at 1percent to 2percent per year over the last six or seven years.
Read MoreGlobal delivery giant DHL plans to add 600 jobs over the next three years at its Americas headquarters in Plantation, executives said Thursday at a ceremony attended by Gov. Jeb Bush and Broward County leaders. The expansion comes as DHL takes on domestic market leaders UPS Inc. and FedEx Corp. in the United States, unveiling plans in June to invest USD1.2 billion in North American operations. DHL also began a six-month, USD150 million marketing campaign in June to build its brand name among Americans. John Fellows, DHL Americas’ chief executive officer, said the 600 jobs to be added in Plantation will boost staffing at the Americas headquarters to about 1,250. That will increase DHL’s total South Florida employment to more than 2,000, including independent contractors. About 40 percent of the 600 new jobs are to be filled by relocating Airborne or DHL staff, with the rest to be new hires.
Read MoreGermany’s DHL International Ltd. said Friday it is aiming to expand its business in Japan by capitalizing on the opening of Chubu International Airport, a new international gateway to central Japan, in February 2005. Under its business plan through the end of 2005, DHL plans to increase its number of international parcel delivery transactions in Japan by utilizing the international cargo and passenger flights of its affiliated or partner airlines to and from the new airport, which is under construction on reclaimed land off Nagoya. Air Hongkong, an affiliate of DHL, will fly a cargo plane to and from Chubu International Airport. Northwest Airlines and Germany’s Lufthansa, both of which are DHL partner airways, will also cooperate with the German company.
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