DHL Upgrades Capacity on Dedicated Hong Kong-Shanghai Service

Uplift capacity increased by 35 percent in response to surging demand for express service in Asia

Uplift capacity increased by 35 percent in response to surging demand for express service in Asia

Singapore — July 14, 2005 — Express carrier DHL has upgraded its uplift capacity on the Hong Kong-Shanghai segment by 35 percent in response to what it calls the tremendous growth in demand for express services in Asia.

Since mid-June, the five-times-weekly Hong Kong-Shanghai service, previously operated by a Dragonair A300B4, has been replaced by a Cathay Pacific-operated service with an Air Hong Kong Airbus A300-600F. The freighter, with a capacity of 47 tons, represents an increase in payload capacity of almost 35 percent; from 35 tons previously.

DHL last upgraded the payload capacity on this route in June 2004, 12 months after the service was first launched, in response to increasing demand and surging intra-Asia shipment volumes.

Greater Uplift for China Shipments

"With the enhanced service, we are now able to offer customers greater uplift for their shipments to and from China, connecting through our Central Asia Hub in Hong Kong," said Jerry Hsu, president for Greater China and Korea at DHL Express. "We have been experiencing phenomenal growth rates in China over the last few years and it continues to be the driver of growth for DHL in the Asia Pacific."

DHL said that it has been strengthening its dedicated Asia Pacific air network over the last four months. In April, two new direct overnight express services were introduced, between Beijing and Hong Kong; and between Shanghai and the United States. The new services were launched shortly after DHL commenced a dedicated overnight service four times per week between Nagoya and Hong Kong in March.

Surging Shipment Volumes

Ross Allen, senior vice president of aviation at DHL Express Asia Pacific, said that surging shipment volumes on the Hong Kong-Shanghai trade lane necessitated a capacity upgrade on this route. "This is to ensure that there is adequate uplift availability in place to support the pace of the growth of DHL's business in those markets and across the Asia Pacific region," Allen said. "This development also ties in with our long-term aim of having in place a line haul network that is superior to the competition in terms of reliability, market coverage and cost efficiency."

DHL's dedicated air network in the region connects 27 destinations and is served by more than 20 aircraft in dedicated freighter operations. This allows capital cities and other major business centers to be interconnected through DHL's regional hubs and gateways, providing DHL's customers with overnight services across Asia Pacific, according to the express carrier.

DHL reported annual revenues over $32 billion in 2004. Founded in San Francisco in 1969, the company now has more than 170,000 employees and an international network linking more than 220 countries and territories worldwide.

Additional Articles of Interest

— Imminent terrorist attacks or no, your competitive advantage demands that you secure your company's supply chain. Read more in "Supply Chain Security: Is Your Company Complacent or Engaged?," in the February/March 2005 issue of Supply & Demand Chain Executive.

— For a look at how Tyco Fire & Security is tackling trade compliance issues in its global supply chain, see "Turning Global Trade Compliance Into a Competitive Advantage," in the August/September 2004 issue of Supply & Demand Chain Executive.

— For more information on the challenges and opportunities presented by increasingly global supply chains, see the special in-depth report in the August/September 2004 issue of Supply & Demand Chain Executive, which includes the following articles:

— For more information on the global supply chain, with a focus on security issues, see "Building the Secure Supply Chain," the Net Best Thing article in the June/July 2003 issue of iSource Business (now Supply & Demand Chain Executive) magazine.

— For more information on the latest trends in the logistics space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.