DHL Global Forwarding moves to secure freight capacity

  • October 9, 2014
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As a much-anticipated peak season approaches, DHL Global Forwarding (DGF) has launched a program to secure long-term capacity on a number of the world’s busiest trade routes, notably between the European and Asia Pacific markets.  

DGF, the forwarding unit of express postal giant Deutsche Post DHL, based in Bonn, Germany, said the announcement was a response to recent global trade growth and an expected rise in shipping rates in certain busy regions due to freight capacity shortages.

“As global trade picks up – fueled by spiking demands in technology – DHL is seeing customer volumes increase on many trade lanes, especially in Asia Pacific,” said Roger Crook, CEO of DGF.  “In this scenario, where capacity is tightening and demand is rising, upward pressure on prices is virtually unavoidable.”

Citing data from market research firm IHS, DGF said exports have increased by 4.4 percent, year-over-year, in the third quarter of 2014. The Asia Pacific market, the company said, has shown the strongest improvement, with freight carrier in the region reporting a 7.1 percent surge in FTKs in July 2014, compared to the same time last year.

DGF also pointed out that HSBC’s Purchasing Managers’ Index (PMI) for manufacturing had expanded in China, India, Korea and Taiwan in August, with Taiwan showing “the strongest improvement since April 2011.”

Rajeev Singh-Molares, CEO of DGF’s Europe, Middle East and Africa (EMEA) division, said his region has also seen a steady increase in customers’ demand for freight capacities. “In this changing market situation, where rising volumes encounter capacity shortfalls and increasing carrier rates, we are well-positioned to support our customers’ business success while continuing to deliver high-quality service,” he said.

(For more information about economic changes in the freight-forwarding arena, please join us at the “Forwarders Panel” session at the upcoming Cargo Facts Aircraft Symposium, to be held Oct. 22-24 in Miami. Forwarding experts from UPS, Panalpina and DHL are expected to be in attendance. For more information, or to register, visit the Symposium website.)

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