DHL Express enhances Asia Pacific network to help customers manage geographic headwinds
- Written by The Bulletin
- Continuous investments have bolstered DHL's aviation network and ground facilities in the past year, enabling it to support new trade demands and the traditional peak season spike
- The company saw 6% more international shipments move between Asia Pacific and other continents through its network, comparing the first nine months of 2023 and 2024
SINGAPORE - Media OutReach Newswire - 17 December 2024 - DHL Express, has bolstered its aviation network and ground facilities with significant enhancements across Asia Pacific in the past year.
Comparing the first three quarters of 2023 and 2024, DHL Express moved around 6% more shipments between Asia Pacific and the rest of the world this year, proving that Asia Pacific will continue to play a bigger vital role in global trade. Amplifying its regional connectivity and efficiency enables DHL Express to cater to new poles of trade growth emerging across Asia Pacific driven by supply chain diversification and geographic tailwinds.
Ken Lee, CEO for Asia Pacific, DHL Express said, "Asia Pacific markets are facing significant growth boosted by diversification of global supply chains, structural tailwinds and e-commerce. Thanks to our forward planning, we are well-positioned to respond to these shifts in demand with the timely and strategic enhancements we have made across the region. These enhancements also put us in an excellent position to support our customers during the traditional peak season where consumer e-commerce traffic will spike."
Responding to Southeast Asia's growth demand
Southeast Asia is a rising star in global trade. With its young and skilled workforce, several trade agreements, and focus on innovation, the region is attractive and one of the fastest-growing destinations for international traders looking to diversify their supply chains.
In the past year, DHL Express has expanded several key facilities in the region to keep pace with increased trade. It upgraded the South Asia Hub located by Changi Airport, Singapore to cater for anticipated volume growth, which stood at more than 20% in 2021 and 2022. Playing an essential role in DHL Express's multi-hub strategy for Asia Pacific, the South Asia Hub leverages Singapore's position as a key logistics hub to serve shipments destined for Europe, Americas, Asia and Oceania. Upgrades to the Hub include the deployment of new X-ray screening machines that raise scanning capacity by close to 30% and enhancements made to the existing material handling system that increase sorting capacity by almost 40%.
South Asia Hub is also home to five DHL-owned Boeing 777 freighters operated by Singapore Airlines under a crew and maintenance agreement. These aircraft offer an additional payload capacity of over 1,200 tons, optimizing transit times between the Americas and Asia, as well as bridging trade between the continents. The new Boeing 777s consume 18% less carbon emissions compared to the legacy B747-400s – reducing DHL's Scope 1 emissions.
In October 2024, DHL Express opened the advanced gateway in Kuala Lumpur, firmly supporting Malaysia's prominence as a sourcing destination, particularly for electric and electronics manufacturing. With an investment of around EUR60 million, the expanded facility spans over 13,000 square meters, and is equipped with a fully automated sorting system. It is also constructed in accordance with DHL Group's guidelines for a carbon-neutral building, where solar panels, energy-efficient systems for water and electricity are installed across the complex.
The regional upgrades also include reinforcing the company's network across high-demand trade routes. In September, a new direct flight from Hong Kong to Jakarta was introduced to further improve transit time and customer service quality. Businesses and consumers in Indonesia stand to benefit from faster deliveries of their intra-Asia Pacific shipments and more trade opportunities with Asian partners.
Peter Bardens, Senior Vice President for Network Operations & Aviation – Asia Pacific, DHL Express said, "We take a proactive approach to continuously adapt our network and enhance our service quality. Our customers today have diverse needs, and our robust international network will help connect them to global markets and drive new growth opportunities in the region. International trade remains integral to the world economy and we will continue to play a central role to that."
Strengthening Oceania's connectivity for international trade
Oceania's export-driven economy is strongly supported by the company's modern logistics networks and efficient customs procedures. To help customers better leverage the region's opportunities and trade routes to its Asia-Pacific counterparts, a dedicated flight route now operates between Sydney and Hong Kong to further enhance connectivity from the Oceania region. Upon shipment arrival in Hong Kong, it offers next-day delivery services to Mainland China, India, Korea, Japan, Malaysia, Taiwan, Thailand, Philippines, and Vietnam.
Besides additional air cargo capacity, DHL Express has also commissioned two ground facilities in Adelaide and Newcastle in the last 12 months.
The company cemented its presence in Australia with a recently opened gateway in Adelaide. Re-located nearer to the airport, the enlarged facility's peak facility handling capacity has increased fourfold and it improves transit times for outbound shipments to Asia Pacific, Europe and the U.K. by a day. It will also help local businesses gain direct air freight access into and out of Adelaide and South Australia, reducing the need to rely on other Australian ports. In addition, DHL Express has established a new multi-million dollar service center in Newcastle that is more than 10 times larger than the previous site. The infrastructure will help businesses in the region export their products to international markets and access a wider range of imports for their supply chains.
DHL Express will also open a new gateway in Christchurch, New Zealand, as it further extends its footprint in the country. As the largest investment ever made in the country, the facility will be DHL Express's first 100% carbon-neutral facility in New Zealand. Its line sorter conveyor system, capable of processing up to 6,500 parcels per hour for inbound shipments and 5,600 parcels per hour for outbound shipments, will enable local Kiwi businesses to import and export more efficiently.
Scaling network capacity in North, East and South Asia to accelerate trade
Hong Kong is a crucial gateway for trade between mainland China and the rest of the world. DHL Express has inaugurated its Hong Kong West Service Center to further enhance the special administrative region's connectivity as the city gears up to meet growing trade demand. The facility can handle over 50,000 shipments a day and has earned the LEED gold status – a globally recognized green building certification program.
In the first quarter of 2024, DHL Express and Japan Airlines also strengthened their partnership with a wider air network connecting Japan, Seoul, Shanghai, and Taipei. This demonstrates DHL Express's ability to be agile and commitment to raising service reliability and efficiency standards.
As a popular multi-shoring destination, India's overall exports continue to trend upwards, attaining a growth of 1.23% between November 2022 and 2023. According to the latest DHL Global Connectedness Tracker, India is also one of the countries with the largest increases in its share of world trade. Recognizing the need to cater to the growing demand for logistics services, DHL Express invested and opened its first automatic shipment shorting hub in New Delhi, India. This investment caters to local businesses' desire to export seamlessly to foreign markets.
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