DHL moves to secure freight capacity

Rising volumes of air and ocean freight has led DHL to introduce a freight capacity management programme.

Asia Pacific DHL Global Forwarding Rajeev Singh-Molares Roger Crook

DHL Global Forwarding is responding to global trade growth with freight capacity initiatives designed to support customers in a challenging market environment. These include securing sufficient long term capacity on some of the world’s busiest trade lanes such as, to and from Asia Pacific, where carrier rates are climbing as a result of shortfalls in freight capacity.

Roger Crook, CEO DHL Global Forwarding, Freight said, “As global trade picks up – fuelled by spiking demands in technology – DHL is seeing customer volumes increase on many trade lanes, especially in Asia Pacific. In this scenario, where capacity is tightening and demand is rising, upward pressure on prices is virtually unavoidable. DHL’s capacity programme is targeted to meet customers’ crucial shipping needs across all industry sectors against the backdrop of rising demand.”

Recent data shows that global exports are on the increase. According to IHS, exports are up 4.4 per cent in the third quarter of 2014 compared to 2013. Asia Pacific is showing the most marked trade improvement compared to other regions. Trade activity among Asia’s emerging markets rebounded from low growth in the first quarter of 2014 and has been on an upward trend ever since.

In Asia Pacific, air freight carriers are registering a 7.1 per cent rise in freight-tonne-kilometre (FTK) in July 2014 compared to 2013. In China, market demand is picking up, yet the capacity supply remains tight. HSBC’s Manufacturing PMI2 shows that this sector in China, India, Korea and Taiwan expanded in August, with Taiwan signalling the strongest improvement since April 2011.