Weekly Air freight service for China - Africa sector by DHL

DHL Global Forwarding has launched weekly air freight service to move cargo from China to Africa via Dubai route..

The weekly freighter service will have a capacity to carry 100 tonnes of cargo. The forwarder said that it will consolidate all cargo from across China in Guangzhou & move it via Dubai to various destinations in Africa & Middle East as Dubai plays key role as gateway between China & rest of Africa.

The forwarder said that this service is specially for organisations & governments who want to ship goods from China to Africa & Middle East.

Starting April 21, the service will operate for four weeks initially however DHL Global is actively seeking to secure all routes to Africa in longer term.


As per forwarder the bulk of the cargo will comprise of protective gears like masks, gloves, sanitisers & goggles .

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Opening of New Freight Hub near Hanover by DHL

On 13 Sept European transport giant DHL Freight opened new freight hub with an area of 8700 sq m at Airport Business Park in Langenhagen near Hanover Germany .

This facility will provide 86 loading bays managed by 290 employees support for its freight services Euroconnect & Eurrapid .

In order to increase its strength DHL has also introduced automated weight, volume & cargo data recordings system in its new hub in order to increase efficiency & speed .

In order to promote Group's environmental programme DHL promoted sustainable construction methods & use of renewable energies while constructing this site including photovoltaic system & LED lighting .

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DHL deploys Disaster Response Team to earthquake affected Indonesian Island.

In the wake of devastating earthquake & tsunami in Indonesia Deutsche Post DHL has send its Disaster Response Team (DRT) to Sulawesi, affected island of Indonesia.

As per current update death toll has risen more than 1400 affecting 1000 villages & approx 60000 have lost their homes.

Currently two DRT teams are sent to Indonesia , one at Balikpapan & other at Palu to assist & handle international relief support & store relief goods. The response team is also providing logistical solutions to airports & huminatarian organisations in managing incoming aid for distribution to those in need.

Immediate required goods like tents, food , fuel, etc are flown to Balikpapan airport.

DHL has arranged more volunteers as standby & will be snet once government has cordinated for international flow in Indonesia.

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DHL launching new mobile app named Resilience360

For real time monitoring of shipments in supply chain market DHL is launching new app named as Resilience360.

Tobias Larsson, Head of Resilience360, DHL , said: “In the increasingly connected world we live in, both people and goods are constantly on the move, making near real-time risk management imperative.

“At the same time, supply chains have become incredibly complex.

“However, thanks to revolutionary technologies like big data, predictive analytics and machine learning algorithms, we are in a position to identify and manage risk like never before. The app puts all of that predictive power at your fingertips,” Larsson promised.

This app is available with both Google Play & Apple Store.

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To Kick Off Farnborough Airshow DHL orders 14 B777Fs

Based on current list prices worth $4.7bn DHL orders 14 Boeing 777 Freighters with purchase rights for additional 7 freighters.

After this order DHL fleet of B777 will be double in size.

This order was announced at Farnborough International Airshow, is in response to increasing express demand & also to replace ageing aircrafts.

 Ken Allen, chief executive, DHL Express, said: “The acquisition of the 14 Boeing airplanes reflects a gradual replacement of our older intercontinental fleet.

"As the most fuel-efficient, most reliable freighter type with the best long-haul range, these aircraft will contribute to our emissions reduction targets and allow us to serve even more markets with non-stop flights.

"DHL was an early adopter of this type of aircraft for the logistics industry and took delivery of the 3rd B777F produced by Boeing in 2009. With extensive experience operating this freighter type, it has proven to be superior in all aspects of operation making it a logical choice."

The 14 aircraft are capacity neutral, but operational wise offer "significant cost, efficiency and reliability benefits", DHL said.

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DHL Global Forwarding planning to expand freighter service

With increasing demand DHL Global Forwarding is planning to expand its freighter services to meet customer expectation & demands.

According to David Goldberg , Chief Executive, Global Forwarding , US , steady & predictable service along with steady rates to be provided to customer throughout the year.

As per him last year there were many airlines who cancelled there capacity at certain ports which resulted in huge delay for our customers hence deploying own capacity on those lanes where we expect high demands will help sustain customers & increase business.

People are using air freight to avoid delay in production & they prefer cargo movement in accordance with production time table so as to have it when it is needed.

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DHL airfreight volumes decline as it turns away business to protect margins

Freight forwarder DHL Global Forwarding's decision to turn away airfreight business to protect profits in the first half of this year resulted in a decline in volumes.
The Bonn-headquartered forwarder recorded a 7.2% year-on-year decline in airfreight exports during the second quarter to 530,000 tonnes, while the half-year result was down by 3.6% to 1m tonnes.
Second-quarter airfreight revenues, meanwhile, increased by 3.1% against last year to €1.27bn and for the half year there was an increase of 7.3% to €2.39bn.
It said that the decline in volumes was the result of withdrawing from some major transactions in order to counteract a decrease in margins, while revenues benefited from exchange rate gains.
"Whilst the measures we implemented in the previous year to increase profitability are in fact showing success, margins are still low when compared with the historical average," it said.
Asked whether it would turn away further business in the remainder of the year, chief financial officer Larry Rosen said the decision on whether to "pass out further on loss making routes and customers" depended on market developments.
If the market improves there would be less need to "pass out" but if it worsens the need to be selective would continue.
Airfreight gross profit increased by 1.7% in the second quarter to €246m.
The overall division saw revenues increase by 5.7% in the first-half to €7.57bn. It said the majority of the increase was down to exchange rate gains of €367m.
The DHL forwarding division's earnings before interest and tax declined by more than 62% at the half year to €57m, which it put down to the cost of implementing a turnaround initiative and tough market conditions, although this was offset by the €99m generated by the sale of shares in Sinotrans.
The turnaround initiative has been divided into three parts: the first, which is complete, is to adjust organisational structures, re-empower countries, re-establish stronger accountability and re-enable staff and adjust incentives.
The second stage, which is being implemented at present, involves improving gross profit, improving cost
and service performance and developing a specific country focus.
The third stage will sharpen commercial focus, see investment in skills and capabilities through training and and the renewal of IT with a business-centric approach.
The cost of the turnaround project of €81m was more than offset by the €99m generated through the sale of the stake in Sinotrans.
Following the announcement of its first-quarter results, DHL parent Deutsche Post said it was suspending the forwarding division's transformation programme as its roll out was affecting business performance.
It reasoned that the project had been too ambitious and more attention should have been paid to the results of pilot projects.
DHL airfreight volume decline for the first-half period was the largest posted so far by the major European forwarders that publish figures, although its position as airfreight leader was unaffected as DHL is by far the largest in this sector.
In comparison, Kuehne+Nagel recorded half-year air volume growth of 5.2%, Panalpina was down at 2.1%, DB Schenker saw growth of 1.1% and DSV's half-year increase came in at 8.7%.

Source : http://www.aircargonews.net/news/forwarders/single-view/news/dhl-airfreight-volume-decline-as-it-turns-away-business-to-protect-margins.html

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DHL, K+N and DB Schenker the leading airfreight forwarders

 
DHL Global Forwarding, Kuehne+Nagel and DB Schenker have maintained their position as the world’s leading airfreight forwarders, while the top 25 forwarders recorded a total increase in airfreight demand of less than one percent.
The latest top 25 Global Freight Forwarders List from consultant Armstrong & Associates, based on revenues and ocean and airfreight demand, revealed that the leading companies recorded a 7.7% year-on-year increase in revenues in 2014 to $213bn.
Airfreight demand amongst the top 25 increased by 0.4% to 13.5m tonnes and containerised ocean freight was up 2.3% on 2013 to 22.9m teu.
The leading three forwarders in terms of revenue were once again DHL, K+N and DB Schenker, with all three recording an increase in income during the year.
These three forwarders were also the three busiest airfreight forwarders, with all three growing faster than the 0.4% average recorded by the leading 25.
DHL saw air volumes increase by 2.6% year on year in 2014 to 2.3m tonnes, K+N recorded a 5.3% increase to 1.2m tonnes and DB Schenker’s were up 1.8% to 1.1m tonnes.
The company which recorded the largest increase in airfreight demand was Geodis, which saw a 28.9% jump to 270,600 tonnes. It also recorded a 55.8% rise in ocean volumes.
These two increases propelled the French logistics company eight places up the table to 13, but while volumes rapidly increased, 2014 revenues were up by a lower amount of 2.3% on 2013 to $5.6bn.
The volume increases appear to be the result of new contract wins, with parent company SNCF stating that 2014 figures included wins from Alstom, ABB, H&M, Lego, amongst others, while it also extended its international network of operating hubs, particularly the hubs dedicated to the oil and gas industry.
The company which dropped the most places on the list was troubled AP Moller-Maersk-owned Damco.
The forwarder saw 2014 revenues remain flat at $3.2bn, while air demand was down 16.2% on 2013 at 190,000 tonnes and ocean volumes slipped by 0.7% to 786,000 teu.
New entrants to the list were: Hitachi Transport Systems, Dachser and CJ Korea Express.

Source : http://www.aircargonews.net/news/forwarders/single-view/news/dhl-k-n-and-db-schenker-the-leading-airfreight-forwarders.html

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DHL right in the heart of Texas

DHL has opened a service centre facility in Houston, Texas, mainly to serve the oil and gas sector.
The $2.5m, 28,000 sq ft facility can process more than 2,500 shipments per hour, nearly double the existing capacity and will allow for earlier delivery times and later drop off times.
DHL Express says it has seen an uptick in emergency shipping of machinery parts and replacement tools.
The facility will handle anything from international small parcels to palletised and container freight.
The new facility is to the west of the city centre. DHL Express also has a Service Center north of the city in Humble, Texas, an aircraft ramp at George Bush Intercontinental Airport and its US Customer Finance Support Center.

Source : http://www.aircargonews.net/news/single-view/news/dhl-right-in-the-heart-of-texas.html

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DHL refines risk management system

DHL's Resilience360 risk management tool can now be integrated with customer's transport management systems, allowing them to view shipments affected by disruptive incidents.
Customers can then scan the latest position and status of all their shipments worldwide and identify corrective actions.
Recent incidents monitored by Resilience 360 included the ash cloud from the Bardarbunga Volcano, the economic fall-out from Russian sanctions and the Ebola crisis.
In the case of the volcano, Resilience360’s near real-time information and global mapping device made it possible for customers to anticipate and avert knock-on disruptions elsewhere in the supply chain, such as flight disruptions in other regions, says DHL.
Resilience360's new country-specific risk page also gives with an overview of supply chain risk scores and incident trends, together with a free weekly supply chain risk intelligence bulletin.
Resilience360 is described by DHL as an end-to-end supply chain risk management platform that alerts customers about global incidents and risks to their global supply chain in almost real time, allowing customers to respond immediately to incidents and pre-empt or minimise business interruption.
Since its launch, Resilience360 has been used by customers across Asia, Europe and the Americas, particularly by the automotive, chemicals, life sciences and technology sectors.

Source : http://www.aircargonews.net/news/single-view/news/dhl-refines-risk-management-system.html

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Self-driving car the future of logistics industry

The logistics industry will probably be one of the first testing grounds for automated vehicles, according to a study from package delivery giant DHL.

Shipping companies will likely adopt the technology faster than other sectors, since moving cargo in non-public areas like storage facilities and warehouses provides a safer venue to test such devices, according to a study published this week by DHL, the freight and express arm of Deutsche Post AG.

Eventually vehicles might bring packages to a pick-up station where a consumer could find them, the study said.

DHL plans to “maintain pole position in the world of self-driving vehicles,” wrote Matthias Heutger and Markus Kueckelhaus, the authors of the study. "The question is no longer ‘if’ but rather ‘when’ autonomous vehicles will drive onto our streets and highways."

Source : http://www.cargobusinessnews.com/news/techwire/news2.html

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DHL Supply Chain boosts Chinese logistics investment

DHL Supply Chain (DSC) has more than doubled its commitment to infrastructure investment in China, with a further Euro113m added to the Euro105m committed by the German-owned logistics operator last year.

The total Euro218m investment will support the development of DHL’s Chinese network and, in particular, six new logistics facilities scheduled for completion by 2020 in Guangzhou, Hangzhou, Wuhan, Shenyang, Shenzhen and Shanghai Waigaoqiao Free Trade Zone.
"By working closely with our customers who provide us with their demand forecast, we have a clear roadmap of the locations we need to be in, as well as the level of the services required,” said Oscar de Bok, chief executive of DHL Supply Chain Asia Pacific. 
“In China alone, DSC will expand its warehouse facilities and transport capacities by 50% over the next three years."
DSC recently opened its state-of-the art 54,000 sq m Chengdu Logistics Centre facility in western China to support customers across a spectrum of industries including technology, consumer and healthcare. The new facility also acts as a multi-user cross-dock to support the effective and efficient transportation of products across the Western region.
Zou Yin, managing director of DHL Supply Chain China, said: "Helping companies navigate China's vast geography and varied terrain to deliver their goods safely, efficiently and cost effectively has been the holy grail of the logistics industry."
New facilities have also been introduced in Beijing, Shanghai, Guangzhou and Shenzhen, while the roll-out of DHL Supply Chain cross-docks has been accelerated across China to allow the transfer of cargo with minimal warehousing.

Source : http://www.aircargonews.net/news/single-view/news/dhl-supply-chain-boosts-chinese-logistics-investment.html

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Christmas bonus for air cargo as rates soar due to west coast port congestion

Costs for chartering a freighter to fly from China to the US have skyrocketed, with as much as a 100% rise in rates over the last few months.

While November lease rates for a round trip might rise, normally, to about $400,000 for a 747F, from $300,000 earlier in the year, one air cargo source familiar with the matter told The Loadstar this month prices have been “exceptionally strong, touching $600,000 in a few cases”.

UTi announced last week that it was scheduling 747 charters to Chicago from Shanghai to help shippers beat the congestion at US west coast ports in advance of the holiday season.

Shipping line prices have also increased, with many carriers implementing congestion surcharges, which come into effect today, of up to $1,000 per teu – a significant hike when the spot rate for a Shanghai-US west coast container is currently about $2,000 per teu.

MSC, which filed its congestion surcharge notice as early as May, issued an advisory stating: “This action is due to the labour-related disruption on the US west coast ports that has caused significant delays at this time, not only with our vessels, but with terminal operations and intermodal processes. For this reason, MSC is absorbing significant costs to ourselves, obliging us to charge $800 per 20ft, $1,000 per 40ft and $1,125 /40ft high-cube in order to recover our losses.”

Yang Ming said it too had “absorbed significant additional costs and expenses” brought on by the congestion, and from today would add surcharges ranging from $800 to $1,266 to any US west coast or Canadian gateway port.

The growing congestion problem has led to shippers, in particu
lar in the garment and hi-tech industries, seeking air charters instead.

“This November, charter rates have been north of $500,000, and the market for early December is tight,” said one air charter source.

“Nearly all of this general cargo was sea-to-air conversions, in order to get goods into the stores before US Thanksgiving.”

It is thought, however, that some forwarders have lost out by chartering freighters for their customers who did not want to pay the higher lease rates.

While some media have reported that the west coast congestion could continue until February’s Chinese New Year, December demand for freighters is being led by the integrators and is not necessarily related to the west coast port problem.

“Early December will continue to be tight, but this is different business to what is being flown now. There is not so much sea-to-air conversion,” said one source.

DHL is thought to be “snapping up capacity” for December, while one source indicated that FedEx had wet-leased two 747Fs from Atlas Air and two from Kalitta.

The demand has also had a slight knock-on effect in other markets, with a tightening of capacity expected at the end of November between China and South America, and there are even some indications that China-Europe is beginning to pick up – although one loss-making cargo airline is rumoured to be bucking the money-making trend, offering below-market rates for the fourth quarter.

Meanwhile, White House officials have met with shipping trade groups in an attempt to find a resolution to the US west coast port issues.

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DHL launches downtown mobile service

DHL-Sinotrans, the leading air express company in China, launched mobile stations indowntown Beijing, Shanghai and Shenzhen to provide companies with convenient pick-upfacilities.

The move will help optimize shipment routes for express items and extend cut-off times forcustomers, according to Wu Dongming,managing directorofDHL-Sinotrans International AirCourier Ltd andexecutive vice-president ofDHL Express Asia Pacific.

The mobile stations will also help tackle logistic issues in urban centers.

The DHL-Sinotrans, established in 1986 as a joint venture between DHL and China NationalForeign Trade Transportation (Group) Corp, has deployed eight vehicles in the three cities,extending the pick-up time by up to 60 minutes.

In Beijing, DHL-Sinotrans extends pick-up cut-off time for customers in areas around Guomaoand Zhongguancun. In Shanghai, the service is in place within the CBD area.

The vehicles use a 3G wireless signal to access the DHL’s operations network.

Source: http://www.chinadaily.com.cn/business/2013-09/16/content_16973931.htm

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