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Category: Logistics

Retail News Asia is committed to providing both local and global retailers with the latest Logistics news throughout the Asian market. This on a daily base.

  • DHL Express unveils newly expanded hub in Hong Kong

    DHL Express unveils newly expanded hub in Hong Kong

    DHL Express has completed the expansion of its Central Asia Hub or CAH in Hong Kong, which can now handle six times more shipment volume than when it was first established in 2004.

    The leading express operator has spent 562 million euros on the Hong Kong hub over the last 19 years with two phased developments in both 2008 and 2017. Given its location in Hong Kong, the hub is important gateway to Asia and the rest of the world and today it handles close to 20 percent of the company’s global shipment volume.

    DHL Express said it initiated the final expansion of the facility to complement the launch of Hong Kong International Airport’s three-runway system, which is set to be completed by 2024.

    With direct access to airside and landside, the newly expanded state-of-the-art facility, with double the total warehouse space at 49,500 square metres, is currently the only dedicated and purpose-built air express cargo facility at Hong Kong International Airport with an automated material handling system and peak handling capacity of 125,000 shipments per hour. It currently handles over 200 dedicated flights per week.

    DHL Express said that it expects to handle plus 50 percent of the current volume or up to 1.06 million tonnes per annum when operating at full capacity, six times the shipment volume of when the hub was first established in 2004.

    The company’s Asia Pacific air network operates with four hubs, one in Hong Kong, Shanghai, Singapore and Bangkok, linking to 900 express facilities in the region. The newly expanded hub in Hong Kong is expected to help strengthen the world city’s role as a trans-shipment hub for the Guangdong-Hong Kong-Macao Greater Bay Area, as well as support Hong Kong airport’s long-term goal to become the ‘e-commerce fulfillment centre of Asia’.

    To address the issue of sustainability, DHL has installed solar panels on the hub’s roof and deployed a battery storage system that can store excess solar power and release it as needed,saving 125,000 kWh of electricity annually and reducing 49 tonnes of carbon emissions. Other environmentally friendly features include electric forklifts, LED lights and highly efficient air-cooled chillers.

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  • Etihad Cargo launches ‘instant offer rate’ solution

    Etihad Cargo launches ‘instant offer rate’ solution

    Imagine getting competitive air freight rates for your requirements and completing transactions faster. This is exactly what Etihad Cargo’s instant offer rate solution aims to do.

    The solution, developed with IBS Software, reduces the processing time and can generate prices in seconds based on five key details for bookings and flights across the carrier’s network, including density, departure day, direct or indirect flights, flight demand and requested service.

    The new system cuts the transaction time by up to 70 percent. It uses the required flight/booking data and can provide the best available price seamlessly within a few seconds via Etihad Cargo’s online portal.

    The Abu Dhabi-based carrier has been adding features to its revamped booking portal, ‘making it easier and more intuitive for partners and customers to make bookings,” said Leonard Rodrigues, head of revenue management and network planning at Etihad Cargo.

    The launch of the new solution follows the recent addition of features enabling the booking of cats, dogs, and dangerous goods on Etihad’s air cargo booking portal as part of its ongoing digitalization strategy.

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  • SingPost’s Australian unit eyes purchase of Border Express

    SingPost’s Australian unit eyes purchase of Border Express

    Freight Management Holdings or FMH, a subsidiary of Singapore Post, has entered into a conditional sale and purchase agreement with the shareholders of Border Express, for a maximum purchase consideration of A$210 million, or approximately S$183 million.

    Border Express is considered the 6th largest national transport and distribution services company in Australia with comprehensive freight connectivity, warehouses and regional centres.

    It provides end-to-end interstate logistics services with a network of 16 facilities, a fleet of over 700 vehicles, a team of 1,300 employees, and over 3,000 clients across industries, including large retail and consumer brands.

    Upon completion, Border Express will join the transportation companies held under the FMH Group umbrella, which include GKR Transport, Niche Logistics, BagTrans, Formby Logistics and Spectrum Transport.

    Over the past three years, SingPost has expanded its operations in Australia with the FMH Group and CouriersPlease, and more recently, it reached agreement with the remaining minority shareholders of FMH to take its ownership to 100 percent.

    The Australian integrated logistics market is estimated at over A$120 billion. With the acquisition of Border Express, revenues of the wider FMH Group are expected to exceed S$1 billion.

    “Upon completion, the acquisition will support FMH Group to realise the vision of a new logistics ecosystem where people and physical assets are connected through a ubiquitous technology platform, enabling true supply chain efficiency,” said Simon Slagter, Group Chief Executive Officer at FMH Group,

    The transaction is subject to relevant statutory approvals and other closing conditions.

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  • FedEx speeds up Vietnam-Singapore service with B767F

    FedEx speeds up Vietnam-Singapore service with B767F

    FedEx Express is further enhancing its services between Vietnam and Singapore as well as the wider Asia, Middle East, Africa (AMEA) and Europe market, with the introduction of a new flight offering expedited delivery times.

    The new service will use a dedicated B767 freighter starting October 31 to fly four times a week in the evenings from Ho Chi Minh City to Asia and Europe through the FedEx hub in Guangzhou, China.

    Exporters shipping from Southern Vietnam will benefit from faster transit times for shipments to Singapore and major Asian markets in just one business day, and two business days to Europe.

    These new flights offer additional capacity on top of the current five flights to Asia, Europe, and the US. These include four daily morning services through the FedEx hub in Singapore and the existing evening flight through the Guangzhou hub.

    FedEx has been supporting cross-border trade to and from Vietnam since it established operations in the country in 1994.

  • Hong Kong’s One Record trial shows flexibility for sea-air cargo

    Hong Kong’s One Record trial shows flexibility for sea-air cargo

    The adoption of proposed industry data exchange standard One Record has been gathering pace, and recently operators in Hong Kong marked a major milestone with the first shipment transported by sea-air from the Greater Bay Area via Dongguan.

    The milestone is part of a joint pilot scheme between Cathay Cargo and the Airport Authority Hong Kong (AAHK) to trial a sea-air multimodal solution to transport cargo from Dongguan for export to other countries via Hong Kong.

    IATA’s ONE Record initiative enables end-to-end transparency for consignments, logging progress as they pass through multiple links in the chain from shipper to agent, airline, warehouse and statutory authorities such as customs, following IATA’s protocols for APIs – the interface that enables users to connect to the system, and share data in a secure way.

    Cathay said this marked the first time that IATA’s One Record was made available for sea-air, which saw air cargo bound for Bangkok, Manila and Tokyo from forwarder Yusen Logistics.

    The cargo was accepted at the Cathay Cargo Terminal in Dongguan and passed through AAHK security there, with cargo acceptance logged outside the origin airport’s cargo terminal. That acceptance was registered as an acceptance milestone on ONE Record. The system then generated data notices when the bonded shipments were unloaded for export at Hong Kong Airport. From there, the shipments triggered the normal ONE Record shipment milestones as they completed the journey until the collection by the eventual consignees.

    One Record is scheduled to be implemented in 2026, according to IATA, and the airline said the pilot showed its value in enabling premium services like Ultra Track and other use cases.

    “This pilot also showed ONE Record’s flexibility, and being able to accept cargo from an upstream cargo terminal and then log its transit by boat was a world first,” said Cathay Director Cargo Tom Owen.

    Yusen was able to follow progress by logging into their account in the one-stop digital cargo-management system, EzyCargo™, using an interface designed by Global Logistics System (GLS), one of the pioneers in developing IATA ONE Record technologies who led the technical and system readiness work for the pilot.

    “ONE Record will really help enhance the collaboration among supply chain stakeholders, especially for shipments from the GBA, and it will improve visibility for our customers,” noted Cyrus Chan, Manager Air Freight Forwarding Division at Yusen.

    “ONE Record is gaining traction and will become the global standard, and we are keen to be an early adopter to align with industry best practice and future developments in air-cargo operations.”

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  • JD Logistics rolls out express parcel service in Hong Kong, Macau

    JD Logistics rolls out express parcel service in Hong Kong, Macau

    JD Logistics is strengthening its presence and operations in the Greater Bay Area by expanding its self-operated express delivery business in Hong Kong and Macau via JD Express.

    The enhanced delivery network will comprise several operations centres and offer intra-city and cross-border express delivery between Hong Kong, Macau, and China.

    In Hong Kong, the company promises expedited intra-city deliveries as fast as 4 hours and nighttime extended delivery hours until 10:00 PM. In Macau, intra-city packages can arrive as soon as the following day.

    JD Logistics has provided B2B and B2C warehousing and distribution logistics solutions across Hong Kong and Macau for over five years, and the company’s newly launched self-operated express delivery services will enable online shoppers in Hong Kong and Macau to enjoy the same convenience found in the mainland.

    “With our recent expansion of delivery services into Hong Kong and Macau, we are proud to bring JD Express’ quality service, honed over a decade, to these regions for the very first time,” said Wei Ma, General Manager of JD Logistics Express Business Hong Kong.

    “With a humble and practical approach, we are committed to providing our customers in both cities with a reassuring and worry-free express delivery experience.”

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  • DHL Supply Chain earmarks €350m for Southeast Asia network

    DHL Supply Chain earmarks €350m for Southeast Asia network

    DHL Supply Chain plans to invest EUR350 million in Southeast Asia over the next five years to expand its warehousing capacity, workforce and sustainability initiatives.

    With this investment, DHL Supply Chain will increase its current 1.6 million square meters of warehouse space in Southeast Asia by 25 percent, or 400,000 square meters. This is part of a series of strategic investments by DHL Supply Chain over the past year, which have already added up to EUR1.35 billion globally. These included investments in infrastructure, hiring and development, as well as automation, digitalization and sustainability in India, Latin America and Southeast Asia.

    “Companies are looking at diversifying their supply chains. Southeast Asia, with its efficient work environment and effective trade agreements such as the China-ASEAN FTA, stands to benefit the most.

    “These are strategic investments we take – despite the generally softer market environment – because we invest in the future growth of our business and strongly believe in the strategic expansion and diversification of our regional businesses,” said Oscar de Bok, CEO, DHL Supply Chain.

    The company added that it will continue to develop its warehouse management systems (WMS) and introduce technology in selected markets, such as auto-stores, automated storage and retrieval systems (ASRS) for pallets and large goods, and automated guided vehicles (AGVs).

    “We are not just increasing our capacity, but we are building logistics centers that can cater to future demand for our customers through robotics and sustainability initiatives,” noted Javier Bilbao, CEO, DHL Supply Chain Asia Pacific.

    For example, he highlighted the upcoming fifth facility in Penang – PLH5, which will feature state-of-the-art automated pallet storage and retrieval system and goods-to-person robotics technology to handle small parts picking.

    Looking ahead, the contract logistics unit shared a broader strategy to nurture talent and meet evolving customer demands in automation, digital analytics, electric vehicle (EV) handling, reverse logistics, and solution design. It also plans to double its EV fleet in Southeast Asia over the next five years.

    DHL Supply Chain is also championing sustainability in the sector as it committed to having carbon-neutral facilities for all new buildings, like what it has done in its facilities in Singapore and Malaysia.

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  • JD Logistics rolls out express parcel service in Hong Kong, Macau

    JD Logistics rolls out express parcel service in Hong Kong, Macau

    JD Logistics is strengthening its presence and operations in the Greater Bay Area with the expansion of its self-operated express delivery business in Hong Kong and Macau via JD Express.

    The enhanced delivery network will comprise several operations centres and offer intra-city and cross-border express delivery between Hong Kong, Macau, and China.

    In Hong Kong, the company promises expedited intra-city deliveries as fast as 4 hours and nighttime extended delivery hours until 10:00 PM. In Macau, intra-city packages can arrive as soon as the next morning.

    JD Logistics has provided B2B and B2C warehousing and distribution logistics solutions across Hong Kong and Macau for over five years, and the company’s newly launched self-operated express delivery services will enable online shoppers in Hong Kong and Macau to enjoy the same convenience found in the mainland.

    “With our recent expansion of delivery services into Hong Kong and Macau, we are proud to bring JD Express’ quality service, honed over a decade, to these regions for the very first time,” said Wei Ma, General Manager of JD Logistics Express Business Hong Kong.

    “With a humble and practical approach, we are committed to providing our customers in both cities with a reassuring and worry-free express delivery experience.”

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  • UPS to expedite pharma, AOG handling with new acquisition

    UPS to expedite pharma, AOG handling with new acquisition

    UPS has entered into an agreement with private equity firm Quad-C Management to acquire MNX Global Logistics (MNX), a time-critical logistics provider with clients in the aerospace, healthcare and pharma industries.

    UPS will look to leverage MNX’s specialist capabilities in airport on ground (AOG) delivery services and temperature-controlled logistics for its healthcare unit and clinical trial logistics subsidiary Marken.

    The company will also offer industry-leading time-critical, temperature-sensitive logistics services together with UPS Express Critical. The transaction is expected to close by year-end, subject to customary regulatory review and approval. UPS has not declared the value and terms of the transaction at the time of writing.

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  • Qatar Airways marks 20 years of freighter operations

    Qatar Airways marks 20 years of freighter operations

    Qatar Airways Cargo is celebrating its 20th year of dedicated freighter operations. Over the past two decades, Qatar Airways Cargo has continuously expanded its fleet, network, and product portfolio in a bid to become the world’s #1 cargo carrier.

    In 2003, Qatar Airways Cargo delivered its first freighter, an Airbus A300-600, a converted passenger aircraft. It began regular operations to Amsterdam and Chennai, and shortly thereafter, to New Delhi.

    Today, the cargo airline operates to more than 160 belly-hold and over 70 freighter destinations with over 200 passenger aircraft and 31 dedicated cargo freighters.

    With the launch of its Next Generation strategy, Qatar Airways Cargo has defined its role in the air cargo industry through enhanced products and services, cutting-edge technology, a commitment to sustainability and diversity, investing in existing talent and attracting new ones.

    Qatar Airways Cargo has achieved significant accomplishments, including being the first airline globally to complete the suite of IATA CEIV certifications, the launch of the Kigali Africa hub in partnership with RwandAir, and the introduction of innovative products like Pharma, Fresh, Courier, and SecureLift.

    Being one of the early adopters of digital transformation, it has launched a new website and online booking portal Digital Lounge and partnered with marketplace platforms The airline has also committed to sustainability through its WeQare program, championing initiatives such as ‘Rewild the planet’ and launching a CO2 emission calculator.

    As the airline enters the next decade, Qatar said it remains dedicated to digitalization and sustainability and looks forward to continuing to be at the forefront of air cargo’s innovation and customer-centric solutions.

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  • Qatar Airways Cargo links with Xiamen Airlines

    Qatar Airways Cargo links with Xiamen Airlines

    Qatar Airways Cargo will offer additional capacity to/from China on the belly space of Boeing widebody jets with a new tie-up with fellow Skyteam member Xiamen Airlines.

    Under the agreement, Xiamen Airlines will launch daily flights on 20 October between Beijing’s Daxing International Airport (PKX) to Doha’s Hamad International Airport (DOH). The Chinese carrier will also launch two weekly flights from Xiamen (XMN), one of China’s special economic zones, to Doha, starting 31 October.

    This is the first time that the Chinese carrier will operate non-stop passenger flights to Qatar.

    A B787-9 will operate the new direct services from PKX to DOH, whilst the XMN-DOH return service will be operated by a B787-8, with more than 100 tonnes of capacity on both flights. Qatar Airways Cargo now serves 9 destinations in China, offering over 2,800 tonnes of cargo capacity each week.

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  • Korean Air mandates e-AWBs for general cargo starting January

    Korean Air mandates e-AWBs for general cargo starting January

    Korean Air will begin its full-scale digital transition to electronic air waybill (e-AWB) to replace conventional paper documents and will apply to general cargo departing from Korea bound for North America, Europe, Japan and other select markets.

    The airline said the paperless transition will streamline the entire process from reservations to final delivery and enhance data quality and accuracy. It will also enable the airline to practice its ESG initiatives.

    Korean Air held consultations and completed trial operations with all stakeholders, cargo clients and forwarders to prepare for the transition. The airline will mandate e-AWB for Korea-outbound cargo starting January next year, with plans to include all loaded cargo departing from global stations in due course.

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  • Qatar Airways, DSV open new cargo route from HSV

    Qatar Airways, DSV open new cargo route from HSV

    Qatar Airways Cargo and DSV Global Transportation and Logistics have teamed up to launch a new route from Huntsville airport (HSV) in the US with two freighter services each week.

    The carrier will operate its Boeing 777 freighters twice a week from Felipe Ángeles International Airport in Mexico to Huntsville en route to Doha via Luxembourg. The freighters from HSV will operate on Thursdays and Sundays every week, offering 200 tonnes of capacity.

    Mads Ravn, executive vice president at DSV, said the collaboration will not only extend the forwarder’s market presence but also allows access to the Middle East with a keen focus on the oil and gas sectors.

    The strategic initiative also establishes a direct scheduled service from Mexico City to Europe, the Middle East and beyond via Huntsville and Luxembourg. The carrier expects to transport major exports like auto parts from Huntsville for various manufacturers in Europe along with perishables and cars from Mexico.

    With the addition of Huntsville, Qatar Airways Cargo now serves 22 destinations in the Americas with freighter and passenger belly-hold flights, providing a combined weekly cargo capacity of over 5,500 tonnes

  • DHL Express transforms Incheon gateway facility

    DHL Express transforms Incheon gateway facility

    DHL Express is confident about the upward trajectory of cargo demand in South Korea and has commenced full-fledged operations at the newly expanded Incheon gateway. 

    The enhanced Incheon gateway is now three times the size of its predecessor with 59,248 square metres of floor area. It can also handle 3.5 times as much capacity, complete with a 5.5-kilometer-long conveyor belt and 19 automated X-ray inspection machines to ensure safety and compliance. It pledged €131 million (KRW 175 billion) to expand the cargo gateway in 2019, marking its largest investment in South Korea to date.

    “Between 2011 and now, the transit cargo handling volume we handled in the country grew more than threefold,” Sean Wall, Executive Vice President of Network Operations and Aviation, Asia Pacific, DHL Express. The opening of the expanded Incheon Gateway arrives at a right time as it plays an important role to facilitate regional and intra-Asia trade, particularly for the Northeast Asian region, including Dalian, Qingdao, Wuxi, Ulaanbaatar, and Guam.” 

    DHL cited growing international express imports and exports with Asia-Pacific neighbours like Singapore, Japan, China, Australia, and Taiwan as contributor to the increasing cargo demand seen at Incheon. To move import and export shipments efficiently at the Incheon Gateway, DHL Express will utilise a fully automated sorting and handling system that can process over 10,000 parcels an hour. The company connects other hubs via Incheon with seven dedicated DHL aircraft and 40 aircraft from partner airlines. 

    DHL Express added that the facility is partly powered by solar energy with a 1-mW solar power generator installed on the entire rooftop area (5,700 square meters). The solar generator can produce energy that covers roughly 30 percent of the facility’s consumed energy, reducing around 650 tonnes of carbon emissions annually. This marks the first instance among cargo terminals within Incheon International Airport to use solar energy. 

    ByungKoo Han, Country Manager of DHL Express Korea, said, “The Incheon Gateway serves as a strategic facility that connects South Korea and the Asia Pacific region to the world. Since its initial opening in 2009, the volume of imports and exports at Incheon Gateway has increased by more than 90% in 2022. With this expansion, we are confident that we can adeptly manage the surge in shipment volume and cater to the increasing demand for international express delivery over the coming decade.” 

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  • Kerry Logistics bounces back in Q2

    Kerry Logistics bounces back in Q2

    Kerry Logistics’ performance in the first half of this year may have already seen the company ‘bottom out’ after the sharp drop from the extreme highs during the pandemic, as the Hong Kong-based logistics player saw 30 percent quarter-on-quarter growth for Q2.

    The abnormal highs seen in 2021 and 2022 have made an impact on year-on-year comparisons with rates slowly going back to the levels seen pre-pandemic. In its interim results, the company recorded a net profit of HK$368 million for the first half, down 85 percent versus the same period last year, with revenue dropping 47 percent year-on-year to HK$25,315 million.

    Vic Cheung, Managing Director of Kerry Logistics Network, said: “In 2023 1H, global trade volume and growth remained subdued. Freight rates and volume stayed depressed while supply chain demand remained stagnant. During the three years ended 31 December 2022, KLN Group’s flexible and innovative supply chain solutions enabled it to benefit from the supply and demand mismatch during the pandemic and achieved exceptionally good results. However, the extraordinary circumstances in 2021 and 2022 proved an anomaly that distorted year-on-year comparisons for logistics companies including KLN Group. After the particularly difficult 2023 Q1, the Group’s overall performance has bottomed out. Although the Group’s core net profit reported a decrease of 85% in year-on-year terms, the performance in 2023 Q2 recorded more than 30% quarter-on-quarter growth. The Group’s resilience, agility and unique position in Asia are expected to carry it through the storm in 2023.”

    Across the business, Kerry Logistics’ integrated logistics remained stable in H1 with a segment profit of HK$718 million compared to the HK$717 million seen in the same period last year. Contributing to the positive performance were its business in China and Thailand-based Kerry Siam Seaport’s satisfactory results with Hong Kong not growing proportionally due to a sharp drop in demand for pandemic-related services.

    The freight forwarding business meanwhile recorded an 82 percent year-on-year contraction in segment profit in the first half at HK$621 million. The company attributed the decline to weak global demand, slower-than-expected recovery in Asian exports and plunged freight rates. Kerry Logistics said the trans-pacific trade lane accounted for more than 80 percent of the business, despite volumes sliding 22 percent year on year. The company said this decline is comparatively smaller and it expects the division to outperform the market when it turns around.

    Recording the only segment loss for the first half is the company’s e-commerce and express business. The company said it expects Kerry Express Thailand, the major contributor for the express division, to stabilise in the fourth quarter of next year. On 25 July 2023, the group announced the transfer of certain companies engaging in express delivery services in Asia Pacific and Europe to an indirect subsidiary of S.F. Holding as a move to reorient its focus towards integrated logistics and freight forwarding.

    Vic Cheung concluded that 2023 is shaping up to be a tough year for the global logistics industry: “the extreme circumstances under the pandemic are gradually fading in global logistics activities and there are signs of improvement in both freight rates and volumes in KLN Group’s key markets.

    “Using the pre-pandemic FY 2019 as the base, we are confident to deliver healthy and sustainable Compound Annual Growth Rate (CAGR) growth in segment profits in our IL and IFF divisions. We are also optimistic that the stable performance of the IL business is likely to keep up the momentum in 2023 2H.”

    Kerry Logistics announced interim dividend of 9 HK cents per share  payable on  22 September 2023.

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