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  • Vietnam ranked among world’s top 10 emerging logistics markets

    Vietnam ranked among world’s top 10 emerging logistics markets

    Vietnam has jumped three spots to eighth in this year’s global index of emerging logistics markets after emerging as a popular manufacturing hub.

    The country had an overall score of 5.67 out of 10 in the 2021 Emerging Markets Logistics Index released by leading logistics company Agility.

    The firm ranked 50 economies based on three factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers, and distributors: domestic logistics opportunities, international logistics opportunities and business fundamentals.

    Vietnam performed well in international opportunities, ranking fourth globally. It was 18th in domestic logistics opportunities and 21st in business fundamentals, which include regulatory environment, credit and debt dynamics, contract enforcement, anti-corruption safeguards, price stability, and market access.

    “Vietnam has made strides as a manufacturing destination as a small number of companies has looked to ease dependence on Chinese production as a result of U.S.-China trade friction, rising costs and the Covid-19 crisis,” the report said.

    Vietnam’s climb by three places to eighth demonstrates it effectively contained the spread of the virus, positioned itself deftly to absorb manufacturers seeking to leave China and possesses an enviable investment pipeline across a number of sectors, including fashion and electronics, which could see its rise continue in 2022, the report said.

    China remained the world’s leading emerging logistics market followed by India. Indonesia (3rd) and Malaysia (5th) were Southeast Asian countries that did better than Vietnam in the ranking.

    According to the Vietnam Logistics Business Association’s latest survey, there are around 30,000 logistics companies in the country, 4,000 of them foreign-owned.

    The industry has been growing at 12-14 percent annually and is now worth $40-42 billion.

  • S.F. Holding and Kerry Logistics Network Announce Strategic Investment

    S.F. Holding and Kerry Logistics Network Announce Strategic Investment

    S.F. Holding and Kerry Logistics Network Limited (‘Kerry Logistics Network’ or ‘the Company’; Stock Code 0636.HK) are pleased to announce the proposed strategic investment and cooperation between the two companies.

    Subject to satisfaction of certain pre-conditions, the Offeror, being an indirect wholly-owned subsidiary of S.F. Holding, will make a Partial Offer to obtain 931,209,117 ordinary shares of Kerry Logistics Network, representing approximately a 51.5% stake (on a fully-diluted basis) of the Company at a cash offer price of HK$18.80 per share (the ‘Partial Offer’). In conjunction with the Partial Offer, Kerry Logistics Network’s warehouse assets in Hong Kong will be disposed of to a wholly-owned subsidiary of Kerry Holdings Limited to unlock its shareholder value, and for the Company to operate under an asset-lighter model comparable to international industry peers.

    Subject to the completion of the warehouse sale, substantially all of the proceeds from the warehouse sale will be distributed to all those shareholders of the Company who are shareholders of record on the record date as a special dividend of HK$7.28 per share. The total amount of offer price plus special dividend to be received by a shareholder of the Company for every share that the shareholder tenders and is accepted under the Partial Offer would be HK$26.08, comprising the offer price of HK$18.80 per share and the special dividend of HK$7.28 per share.

    To facilitate the transaction, the Company’s business in Taiwan, including the interest in Kerry TJ Logistics Company Limited, which is listed on the Taiwan Stock Exchange (‘Kerry TJ Logistics’; Stock Code 2608.TW), will also be sold to a wholly-owned subsidiary of Kerry Holdings Limited in compliance with the laws and regulations in Taiwan. The proceeds from the Taiwan business sale will be retained by the Company for its ongoing growth and developments.

    The Partial Offer is subject to fulfillment of certain pre-conditions including, amongst others, the disposal of the Hong Kong warehouse assets, and the disposal of the Taiwan business becoming unconditional under their respective sale agreements, and upon independent shareholders’ approvals being obtained at a Special General Meeting and the relevant regulatory approvals in various jurisdictions in connection with the Partial Offer being obtained.

    The cooperation will bring together the core competencies of S.F. Holding and Kerry Logistics Network across multiple verticals to create a leading Asia-based global logistics platform to meet ever-changing demands.

    Under the strategic cooperation, Kerry Logistics Network will be positioned as S.F. Holding’s platform for international business. S.F. Holding and the Company will also collaborate with each other in Greater China to better align their respective businesses. By tapping into different customer segments, S.F. Holding and Kerry Logistics Network will coexist as separate entities in Mainland China, Hong Kong and Macau. The Company will continue to grow its logistics businesses, both in terms of scale and coverage. The partnership is expected to create significant synergies to boost both companies’ growth and leadership in the logistics sector with clear business focuses and complementary strengths to bring value to investors.

    Subsequent to the completion of the proposed transaction, Kerry Logistics Network’s listed status on the Hong Kong Stock Exchange will remain unchanged. The Kerry Group of companies will still hold a significant interest in the Company, which will continue to operate under the “Kerry” names with a clear brand identity and be managed by its current core leadership team across all markets.

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  • Kerry Logistics Network opens chemical logistics centre in Cangzhou, China

    Kerry Logistics Network opens chemical logistics centre in Cangzhou, China

    Kerry Logistics Network Limited (‘Kerry Logistics Network’; Stock Code 0636.HK) has opened a logistics centre in the Cangzhou Lingang Economic and Technological Development Zone in Hebei province, China under Kerry IMS Chemical Logistics to capture the market potential in chemical logistics. The logistics centre was opened and commenced operation on 8 January.

    The Kerry IMS Chemical Cangzhou logistics centre was developed to strengthen Kerry Logistics Network’s service capability in the chemical sector and an important base in Northern China, consolidating the Company’s combined resources in logistics, export industries, an international-standard operating platform and transportation facilities. Located in the proximity of the Tianjin Nangang Industrial Zone, the logistics centre has a total area of 320,000 sq ft, comprising Class A warehouse, Class B warehouse, as well as office facilities, and has the capacity to handle 400,000 tonnes of Class A and Class B chemicals per year. The logistics centre was designed and built above Chinese national standards and is equipped with smart monitoring and management systems. At present, it is handling mainly industrial raw materials, mostly packaged in Intermediate Bulk Containers (IBC), drums and pails. The warehouse will store 38 types of dangerous goods, including flammable liquids and solids, oxidisers and corrosive substances.

    William Ma, Group Managing Director of Kerry Logistics Network, said, “The Kerry IMS Chemical Cangzhou logistics centre is the flagship development in Kerry Logistics Network’s expansion of its chemical logistics business, unleashing its strength as a 3PL in the chemical and dangerous goods market. With this logistics centre, Kerry Logistics Network is confident that it will greatly enhance its service capabilities in chemical and dangerous goods logistics, enriching user experience and service quality to offer growth initiatives to the industry.”

    Edwardo Erni, Managing Director – China and North Asia of Kerry Logistics Network, said, “There is enormous potential and development prospects in the chemical logistics market. The completion and opening of the Cangzhou logistics centre will allow us to provide professional chemical supply chain consolidation services to our customers in the Beijing-Tianjin-Hebei Region. It will give support to our customers’ national and regional framework and consistently optimise supply chain networks to raise the autonomy of the chemical industry supply chain.”

    Leveraging the geographical advantage of the Cangzhou Lingang Economic and Technological Development Zone, the Kerry IMS Chemical Cangzhou logistics centre is supported by Kerry IMS Chemical Logistics’ strong chemical warehousing, long-haul trucking and distribution services and network. Not only can it fulfil the warehousing and transit needs of local chemical companies, but can also provide services to the Hebei, Tianjin, Shanxi and Shandong regions, integrating regional resources and upstream and downstream industries to create a sustainable industry chain. The logistics centre is the implementation of Kerry Logistics Network’s operation strategy of synchronised distribution from the warehouses in Eastern, Southern, Northern and Southwest China, so that the logistics and distribution time nationwide is shortened, ensuring the timely delivery of goods to increase the competitiveness of its customers’ products.

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  • UAE among top export destinations of Cebu Pacific for Philippine produce and goods

    UAE among top export destinations of Cebu Pacific for Philippine produce and goods

    Cebu Pacific (CEB), the Philippines’ largest national carrier, continues to fly Philippine produce and goods via its direct flights to the UAE amidst the current pandemic.

    In its steadfast commitment to serving the Filipinos in the UAE including in months with stern movement restrictions, CEB has conducted 12 cargo flights from the second and third half 2020 (Q2 to Q3 of 2020) for Manila to Dubai and vice versa. Prior to the onset of the global health crisis, the airline had operated in first quarter (Q1 of 2020) 75 cargo flights on the same route for the export of food commodities from the Philippines.

    According to the cargo data released by CEB from January to September 2020, the UAE is one of the top global export destinations of the airline for Philippine produce. Of the total 37,405 kilograms of fruit exported to various international destinations, 29 percent or a total of 10,674 kilograms were delivered to Dubai. It ranked second to Hong Kong, where the airline delivered 55 per cent or a total of 20,641 kilograms of fruit in the same period.

    The Philippine mango topped CEB’s list of most exported fruits, amounting to 27,132 kilograms. This was followed by Philippine lime or calamansi, soursop or guyabano, sapota or chico, and turnip or singkamas at 6,178 kilograms.

    According to Charmaine Yalong, Commercial Attaché of Philippine Trade and Investment Centre (PTIC) of the Department of Trade and Industry, the increasing demand for Filipino food products in the UAE may be attributed to the high disposable incomes of consumers, primarily owing to the large presence of Filipinos in the country, as well as the growing proportion of Filipino brands being mainstreamed in the market.

    “The continued support to Philippine exporters, through trade referrals and organization of Philippine participation in trade exhibitions and outbound business missions, contributed to the increasing presence of Philippine products in the UAE. As such, aside from gratifying the cravings of our kababayans for native Philippine products, the cosmopolitan tastes of locals and expatriates in the UAE are now being catered to as well. A wide range of these products are now available side-by-side with other products from Asia, Europe and the United States in the shelves of supermarkets here in the UAE,” Yalong said.

    Yalong highlighted that during the first half of 2020, Philippine food exports to UAE has seen sustained growth. Aside from fruits, the Philippines saw an uptick trend on the export of its processed food and beverages to the UAE which accounted for a whopping US$20.86 million or AED76.61 million. Also on the list were pineapple and by-products, US$14.02 million; fresh bananas, US$12.9 million; tuna, US$3.3 million; and fresh/processed fish, US$0.59 million.

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  • Cainiao Launches Reverse Logistics Channel to Provide Cross-Border eCommerce Goods Return Service in Hong Kong

    Cainiao Launches Reverse Logistics Channel to Provide Cross-Border eCommerce Goods Return Service in Hong Kong

    Cainiao Smart Logistics Network, (“Cainiao Network”), the logistics arm of Alibaba Group Holding Limited, today announced the launch of its reverse logistics channel to offer cross-border eCommerce goods return service to Hong Kong customers. Approximately 85 percent of the goods bought on Alibaba’s eCommerce platforms – Taobao and Tmall, and delivered by Cainiao, will be eligible for returns within seven days. Non-returnable goods include food and health products/ supplements. There are plans to launch a direct reverse logistics channel with Mainland China in other key markets such as Singapore, Malaysia, Taiwan, Macau and Russia.

    The streamlined reverse logistics channel comprises 42 drop-off locations across Hong Kong island and a digital customs clearance system. The entire return process can be monitored in real-time by customers on the Taobao app.

    Currently, the eCommerce industry lacks a stable and cost-efficient reverse logistics channel to cater to the needs of merchants’ and Hong Kong customers due to challenges in customs clearance and cross-border logistics. Industry data revealed that the return rates in eCommerce sits at approximately 20 percent, and this figure surges to 30 percent during the holiday season. However, without a reliable goods return service, 31 percent of the customers have kept unwanted items to avoid the hassle of returning them. With an easier return experience, 96 per cent would shop with a retailer again.

    “Today, goods returns form an integral part of the holistic online shopping experience, and central to good customer experience and loyalty. Therefore, we are aiming to simplify the returns process with the launch of the first reverse logistics channel between Mainland China and Hong Kong, and deliver a more seamless and fuss-free shopping experience amid the eCommerce boom. As Taobao and Tmall’s official logistics provider, we are continuously leveraging cutting-edge technology and industry partnerships to create a more efficient cross-border logistics service to benefit businesses and consumers,” says Ray Cheuk, Head of Operations (Hong Kong), Cainiao Network.

    This announcement comes after the recent launch of its delivery guarantees to provide assurance and offer protection against late deliveries, damaged and lost goods, while offering value-added services such as customer support via WhatsApp and goods returns.

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  • CapitaLand sells three Japanese malls to invest in logistics

    CapitaLand sells three Japanese malls to invest in logistics

    Capitaland has divested three malls in Japan and an office building in South Korea for a total of S$448.7 million, as part of its ongoing portfolio reconstitution strategy, it said Tuesday morning in an exchange filing. It also announced that it has made its first foray into Japan’s logistics sector, entering into a joint venture with Mitsui & Co Real Estate, with CapitaLand as the majority partner, to develop and operate a logistics project in Greater Tokyo.

    The divested properties in Japan are La Park Mizue and Vivit Minami-Funabashi in Greater Tokyo, as well as CO-OP Kobe Nishinomiya Higashi in Greater Osaka, which were sold for a total of 21.99 billion yen (S$283.6 million).

    It also divested ICON Yeoksam in Seoul for 142.2 billion won (S$165.1 million) in August this year. The office building was held through a private fund, Ascendas Korea Office Private Real Estate Investment Trust (Reit) 5. CapitaLand remains the asset manager of ICON Yeoksam and will continue to receive fee income.

    CapitaLand said the divestments were done above valuation, and the buyers are unrelated third parties. Post divestment, CapitaLand will retain S$3.8 billion of assets under management (AUM) in Japan and S$2 billion of AUM in Korea.

    With the divestments, the total gross value of divestments by CapitaLand and its real estate investment trusts (Reits) would be S$3.02 billion, crossing its annual target of recycling S$3 billion of capital.

    CapitaLand and its Reits have invested more than S$3.3 billion into new assets as at end-November.

    “The divestment of these mature malls and office assets is part of CapitaLand’s capital recycling strategy to unlock value by reinvesting the capital into new growth opportunities such as the logistics sector in Japan,” said Jason Leow, president, Singapore & International, CapitaLand Group.

    “By paring down our exposure in Japan’s retail sector and leveraging our logistics experience in markets such as Singapore, Australia and the United Kingdom to expand into the new economy sector in Japan, we are responding swiftly to shifting market trends and consumer behaviors, positioning CapitaLand for future growth,” he added.

    CapitaLand’s new logistics venture in Japan is close to Central Tokyo, and is expected to be completed in Q4 2022. The four-story logistics facility will have a gross floor area of about 24,000 square metres.

    Gerald Yong, chief executive officer, CapitaLand International, said the logistics sector in Japan presents “significant opportunities” for CapitaLand.

    “The global pandemic has accelerated the growth of e-commerce and the logistics sector has been a prime beneficiary of this trend,” Mr Yong said. “We aim to achieve meaningful scale over time by leveraging Mitsui & Co Real Estate’s local knowledge and access to business opportunities to grow our logistics portfolio in Japan.”

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  • Express operators pour investment into Asia Pacific to grab e-commerce traffic

    Express operators pour investment into Asia Pacific to grab e-commerce traffic

    Two of the world’s biggest express operators are beefing-up their Asia Pacific operations amid an “historic” peak season for e-commerce cargo.

    DHL Express said today it would invest €690m ($813m) to increase capacity in the key growth markets of Australia, Japan, Hong Kong, South Korea, Malaysia, India and Bangladesh.

    It will also spend €60m on new aircraft and direct airfreight routes to South-east Asia.

    The company is expecting shipment volumes in Asia Pacific to be 30-40% up on last year’s peak season, following “unprecedented” 50% growth in e-commerce volumes since the start of the year.

    Ken Lee, CEO of DHL Express Asia Pacific, said: “These investments are testament to our continued confidence in the region. They are crucial not only in the near term as we expect an unusually strong peak season, but will make sure we are well-positioned to keep global trade running as e-commerce and cross-border trade grow.”

    In North Asia, DHL will open a 21,000sq metre facility in Osaka by the end of the year, its largest in Japan. And in South Korea, it will triple warehousing space in Incheon to 58,700sq metres, making it the company’s largest gateway in Asia Pacific.

    In Hong Kong, €377m has been earmarked to boost warehouse space by 50% and increase handling to 125,000 pieces a day.

    Investment in South Asia includes a new facility in Bangladesh to increase shipment processing by 35% by Q1 22 and, in India, construction of a new gateway facility in Bangalore is slated for completion next year.

    In Malaysia, DHL plans to triple warehousing capacity and increase processing by 200% at Kuala Lumpur International Airport to compete with Alibaba logistics unit Cainiao’s new regional hub.

    New air freight routes include direct services to underserved Vientiane and Yangon and more frequent connections to Australia and New Zealand.

    Sean Wall, EVP network operations & aviation, said: “The growth in e-commerce shipment volumes will continue to outpace available air cargo capacity, strengthening the case for investing in adding dedicated aircraft to our fleet, opening new routes and supplementing our fleet with charter flights.”

    Meanwhile, Cainiao has now launched operations in Japan. The Chinese juggernaut said it would provide end-to-end logistics services to local businesses, warehouse management, international shipping, trucking and customs clearance.

    “This will bring about a 40% improvement in shipping efficiency, reducing shipping duration from 18-22 days, to 11-13,” said Cainiao.

    Operations in Japan include warehouses in Tokyo, Osaka, Yokohama and Kobe; air and sea forwarding to and from China; and trucking partnerships with Nippon Express, among others.

    “Japan has always been a key market for us,” said James Zhao, general manager of Cainiao Global Supply Chain. “Our launch in Japan will allow us to provide a stronger logistics infrastructure to support businesses’ export and import needs.”

    Meanwhile, yesterday Alibaba set another record-breaking ‘Singles Day’ shopping festival, with $74.1bn transacted in gross merchandise volume. Anmd during the 11-day event, Cainiao processed 2.32 billion delivery orders and operated more than 700 charter flights.

  • Vietnam wants to cut logistics cost to improve goods competitiveness

    Vietnam wants to cut logistics cost to improve goods competitiveness

    The government wants its agencies and businesses to reduce logistics cost to enhance the competitiveness of the country’s goods, Deputy Prime Minister Trinh Dinh Dung has said.

    Speaking on Thursday at the Vietnam Logistics Forum, he said the cost for logistics remains high, leading to higher product costs and lower competitive advantages for Vietnamese goods and its economy.

    Heightened costs stem from reliance on land-based transport and inefficient delivery systems. Take the Hai Phong – Bac Ninh waterway for example. The waterway allows ships with a capacity of 120 TEU (20-foot equivalent units), and they can cover the distance in 8 to 11 hours, three times longer than by road, but at 20 percent lower cost, said Dao Trong Khoa, vice president of the Vietnam Logistics Business Association.

    Dung said the goal is to double logistics services’ share of GDP to 8-10 percent and total logistics costs to 16-20 percent of GDP. To achieve the targets, unnecessary procedures need to be immediately eliminated, he added.

    Khoa said it is necessary to promote the use of digital transformation in logistics via integrating blockchain and artificial intelligence technologies to existing digital platforms for transport and port and warehouse management.

    He underlined the importance of developing international rail links and waterways in the northern Red River Delta and southern Mekong River Delta. These would help reduce costs for logistics service providers, manufacturers and import-export companies.

    The cost of logistics services in Vietnam in early 2019 accounted for 25 percent of the country’s GDP, while the rate was just 9.5 percent in the U.S, 11 percent in Japan, 16 percent in South Korea, and 21.6 percent in China, according to the Vietnam Chamber of Commerce and Industry.

    According to the Vietnam Logistics Business Association’s latest survey, there are around 30,000 logistics companies in the country, including 4,000 international ones.

    The industry has been growing at 12-14 percent annually and is now worth $40-42 billion.

  • DHL Supply Chain to build warehouse at DP World London Gateway

    DHL Supply Chain to build warehouse at DP World London Gateway

    DHL will construct the brand-new bespoke facility at Plot 3040 on London Gateway’s Logistics Park with the main facility build due to commence in early 2021. On completion, DHL will lease the facility from DP World London Gateway.

    The 42m high bay warehouse will feature 36m of clear internal eaves height. DHL said it would be fully automated and ready for operation in early 2023.

    When completed, the facility will be the largest single-unit at London Gateway’s Logistics Park.

    Oliver Treneman, Park Development Director at DP World London Gateway, said: “The most striking feature of this new letting is DHL’s significant investment in automation that underpins its commitment to this strategic location.”

    DHL joins UPS, Dixons Carphone, MADE.COM, Lidl, Ceva Logistics, P&O Ferrymasters, Halo Handling (SH Pratt), Ziegler UK and Compagnie Fruitiere at DP World London Gateway.

    DP World sponsored the Supply Chain Excellence Awards 2020. Discover how it feels to win a Supply Chain Excellence Award by watching the virtual ceremony on-demand.

  • DHL Express to Create Gateway at Hartsfield-Jackson

    DHL Express to Create Gateway at Hartsfield-Jackson

    DHL Express plans to move into a new cargo building at Hartsfield-Jackson International and create a “gateway to the Southeast” as it expands its presence in the region.

    DHL Express, which serves the U.S. market with only international shipments, saw a nearly 60% year-over-year increase in shipping volume in Atlanta for the March-July period as consumers increasingly shop online during the COVID-19 pandemic.

    “I think it’s fair to say that individuals’ buying behaviors for e-commerce has changed,” said DHL Express U.S. CEO Greg Hewitt. “We’re seeing huge amounts of flow as American buy items from Asia and Europe,” and as people overseas buy American goods.

    UPS and FedEx, the two biggest U.S. shipping companies, also have seen explosive growth in demand for shipments.

    Hewitt said DHL is growing its employee base in the Atlanta area by more than 29% and is starting to invest more in airport operations. “”We see Atlanta being really a growing market for us. We’re going to expand and create a gateway at Hartsfield- Jackson.” He called Atlanta “really our gateway for the Southeast.”

    DHL is moving from a smaller space on Toffie Terrace near Hartsfield- Jackson to the new Cargo Building C, and is adding the needed infrastructure for its operations there.

    “DHL’s expansion into Cargo Building C is welcome and will increase their footprint here, add jobs and lead to more cargo flights into ATL,” Hartsfield- Jackson director of air service development Elliott Paige said in a written statement.

    Hartsfield- Jackson’s 130,000-square-foot Cargo Building C has been in development since 2015. The $27.6 million construction project by JE Dunn was part of the airport’s long-envisioned plan to expand air cargo. It was originally expected to be operational in 2017, but leasing out the building took years. In September 2019, Atlanta City Council approved a 20-year lease with ground handler Worldwide Flight Services.

    DHL is subleasing space from Worldwide Flight Services, according to Hewitt.

    “We’ve wanted to have a bigger facility. Atlanta’s long been on our roadmap,” Hewitt said. He added that the company looked for airports where it could bring in goods from Asia and Europe, with “a good understanding” with Customs authorities.

    “All that moved us towards Atlanta,” he said. “We think it will be kind of a growth center for the next decade.”

    Eventually, the DHL plans to hire about 300 employees at the airport.

    That’s in addition to about 120 jobs for couriers and dockworkers for DHL’s other operations in the Atlanta area. The company has facilities in Norcross, where it is expanding, as well as in Atlanta and Smyrna.

    DHL has flights into Atlanta from its primary U.S. hub in Cincinnati, as well as from New York, and plans to add capacity for more shipping volume.

    ” Cincinnati is growing so fast and so big, we want to de-stress that by opening other gateways,” Hewitt said. ” Atlanta is an attractive airport because of the number of commercial flights that come in.”

    DHL is booking cargo space on Delta Air Lines planes for this holiday peak season.

    In addition to belly cargo space on its passenger planes, Atlanta-based Delta also has converted a Boeing 777-200 ER jet into a cargo-only freighter plane by removing the seats. Delta says it is operating more than 20 cargo-only flights a week.

    By the fourth quarter of next year, DHL will “be in a position to be operating our own cargo fleet direct in from Europe and Asia, rather than have that come down from Cincinnati,” Hewitt said.

    Some of the biggest areas of growth in goods coming from overseas are consumer electronics, clothing, medical equipment and personal protective equipment, he said.

    Hartsfield- Jackson also plans to add a new air cargo facility in the airport’s South cargo area.

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  • DHL Express Asia Pacific lauded for its resilience and digital transformation

    DHL Express Asia Pacific lauded for its resilience and digital transformation

    DHL Express Asia Pacific, the world’s leading express service provider, was honored with the 2020 Special Award for Resiliency at this year’s IDC Digital Transformation Awards (DX Awards). The special award, introduced for the first time in the awards’ four-year history, recognizes organizations that have used digital transformation to address the challenges of Covid-19 and minimize its impact on business operations.

    “Our digital transformation investments and efforts have played an important role in ensuring the resilience of our business, but the dedication and ingenuity of our people through this challenging period cannot be understated. Our teams across the region have come together with a Can Do spirit to adapt to adverse situations and we would not be in such a strong position today without their resilient spirit,” said Ken Lee, CEO of DHL Express Asia Pacific. “This award is proof that we are on the right track with our Strategy 2025 and we will continue to invest in and employ innovative solutions and technologies to meet the growing demands of cross-border e-commerce and the demand for fast and reliable express deliveries.”

    DHL Express’ digital transformation program was selected from over 1,200 entries received from organizations across Asia Pacific. The company was recognized in particular for the quick deployment of its business continuity plans, which included the transition of more than 6,000 employees from across the region to work from home seamlessly, without significant impact to operations and DHL’s customer promise.

    Jimmy Yeoh, Chief Information Officer of DHL Express Asia Pacific noted, “The pandemic also provided an opportunity for DHL Express to accelerate the adoption of technologies like live chat and digital assistants, which helped to maintain excellent customer service levels despite the surge in customer queries.”

    “As 2020 progressed, we saw many organizations in Singapore rise to the challenges posed by the pandemic by turning to digital technologies to build resiliency within their businesses. This achievement by DHL Express Asia Pacific is an example of how organizations can maintain high levels of customer satisfaction while ensuring employees remain safe and empowered to fulfill the organization’s central purpose during a difficult time,” said Sandra Ng, Group Vice President, Practice Group, IDC Asia/Pacific.

    IDC’s DX Awards recognizes outstanding organizations that have made critical breakthroughs in digital transformation across the Asia Pacific region, spread across seven different categories. It follows a two-phased approach to determine the country and regional winners. Each nomination is evaluated by a local and regional IDC analyst against a standard assessment framework based on IDC’s DX taxonomy.

    DHL – The logistics company for the world

    DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

    DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 63 billion euros in 2019. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.

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  • DHL Global Forwarding connects China-Amsterdam-US-South Korea with dedicated service

    DHL Global Forwarding connects China-Amsterdam-US-South Korea with dedicated service

    DHL Global Forwarding has launched an air freight charter connecting Asia Pacific to Europe and the US to meet demand from customers in the technology, manufacturing, and life science and healthcare sectors. Managed by StarBroker, DHL Global Forwarding’s in-house charter team, the twice-weekly charter originates from Chongqing, China, and flies to Amsterdam, Netherlands; Chicago, United States; and Incheon, South Korea before returning to China.

    Thomas Mack, head of global air freight DHL Global Forwarding said, “While some passenger airlines have resumed operations, the situation in the air freight market remains volatile – especially as belly capacity is still tight. DHL Global Forwarding’s top priority is to provide our customers with sufficient and reliable air freight capacity. Not only are the resilient, agile, and reliable supply chains of highest importance for an economic recovery, but also in preparation for the availability of vaccines and other essential medical supplies during the pandemic.”

    South Korea has seen its export of healthcare products rise year-on-year by 26.7 percent in the first half of 2020, with pharmaceutical goods in particular increasing by 52.5 percent. China has exported 28.5 percent more medical devices in the first five months of the year as compared to a year ago. In 2019, China, the Netherlands, and the United States were among the top ten importers and exporters of medical goods.

    “Over the years, DHL has built up its expertise from globally certified facilities and staff to technologies that track shipments in real-time in addition to ensuring the integrity of such products throughout their journey. Getting the much-needed air capacity is the last piece in the value chain puzzle, so to speak, that ensures temperature-sensitive products such as life-saving vaccines reach the communities-in-need,” added Mack.

    In a recently published white paper, DHL together with McKinsey & Company as an analytics partner explores the logistics challenges for vaccines and medical goods during Covid-19. To provide global coverage of Covid-19 vaccines, up to 200,000 pallet shipments and 15 million deliveries in cooling boxes as well as 15,000 flights will be required across the various supply chain set-ups.

    DHL Global Forwarding has a global network of facilities that meet the European Union’s Good Distribution Practice (GDP) guidelines for life science and healthcare supply chains. The leading international provider of air, sea, and road freight services has a suite of temperature-controlled freight solutions such as DHL Air Thermonet and DHL LifeConEx that allows real-time visibility and active monitoring for the movement of goods that could include medicines, supplements, vaccines, medical devices, and diagnostic equipment.

    To meet the growing demand for imports of temperature-controlled and high-technology goods into Australia, DHL Global Forwarding will also launch a new airfreight charter on September 23. Flying four times a week, the charter will consolidate goods from Europe, China and Singapore in Hong Kong before transporting them to Sydney, Australia.

    In April 2020, DHL Global Forwarding tapped on its network of life science and healthcare facilities, temperature-controlled solutions and customs clearance expertise to fly more than 1.3 million Covid-19 test kits from South Korea to Brazil, Ecuador, India, Lithuania, Poland, Russia and Saudi Arabia. The freight forwarder also launched a dedicated 100-ton weekly air freight service for organizations and governments shipping health and medical-related items and other goods from China to the Middle East and Africa.

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  • DHL Express launches Hong Kong-Mexico service

    DHL Express launches Hong Kong-Mexico service

    DHL Express Mexico recently launched a Hong Kong-Los Angeles-Guadalajara-Mexico City route. DHL officials said the six-day-a-week flight will increase cargo capacity between Asia and Mexico by 50 tons per flight, adding more than 20% of capacity to its daily operation.

    “We are launching this flight because we believe there will be a very strong need for capacity in the coming months,” said Antonio Arranz, CEO of DHL Express Mexico, in a release. “In 2021 the theme, the challenge in logistics, will be capable, and we are preparing for it.

    Arranz said the new flight will also help reduce transport times of goods from Asia to North America by avoiding a stopover at the DHL Express Americas Hub

    Cargo from Asia would stop in Cincinnati, then be dispersed on evening flights to Guadalajara and Mexico City. The new flight allows cargo from Hong Kong to connect in Los Angeles, to Guadalajara and finish in Mexico City on the same day.

    The new route will also reduce delivery times to the Mexican cities of Tepic, Guadalajara, and Colima. A 767-300 Boeing Converted Freighter will be used for the flight, with a range of 3,000 nautical miles and a maximum takeoff weight of 412,000 pounds. Arranz said the Hong Kong-Los Angeles-Guadalajara-Mexico cargo flight will create 80 jobs along the DHL Express supply chain.

    “It will promote cross-border trade and intercontinental delivery, and at the same time, help support the reactivation of Mexico’s economy,” Arranz said.

    DHL Express is the air and ground express unit of German transport and logistics giant Deutsche Post DHL. DHL Express announced on Friday it was raising its U.S. rates for 2021. The new U.S. rate will be 4.9%, effective Jan. 1. The company will provide additional rate details, including any add-on fees known in the parcel-delivery trade as “accessorials,” no later than mid-October, according to a release. The rate increases are for tariff or published, rates. Contract rates will differ depending on the specific customer.

    An El Paso, Texas-based confectionery manufacturer is opening a state-of-the-art facility in the Mexican state of Chihuahua. Mount Franklin Foods’ 220,000-square-foot candy factory will be in San Jeronimo — a port of entry in Chihuahua across the border from Santa Teresa, New Mexico. Mount Franklin Foods new factory in Mexico will create 300 jobs.

    The new facility will create 300 jobs when the plant becomes fully operational by the end of 2021. The factory will provide additional production capacity for soft candy items, such as gummies and jellies.

    Mount Franklin, which was founded in 1907, manufactures a variety of candy and nut products for the retail and food industries. The company operates seven manufacturing facilities and three distribution centers across North America.

    Texas port sending liquid C02 to Mexico
    Port Freeport recently announced a new partnership between Cemex and Union Pacific to transport liquid carbon dioxide (C02) from the port to customers in Mexico.

    Port Freeport is a major deep-water seaport located in Freeport, Texas. It is located around an hour south of Houston on the Gulf of Mexico.

    According to a release, Cemex will translote the liquid C02 from tanker trucks into rail cars while Union Pacific arranges the transport of the loaded cars to their destination in Mexico.

    The liquid C02 will then be converted into its naturally occurring gaseous state and used in various applications, including the manufacturing of carbonated beverages.

    “Port Freeport’s recent investment in new rail infrastructure on parcel 14 has garnered the attention of many multinational companies,” said Phyllis Saathoff, the port’s executive director and CEO. “Cemex’s partnership with Port Freeport represents our expanded export capabilities and will further develop the port’s relationship with our neighbors in Mexico.”

    Cemex is a Mexican multinational building materials company headquartered near Monterrey, Mexico.

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  • DHL unveils air freight charter linking Asia, Europe and US

    DHL unveils air freight charter linking Asia, Europe and US

    In a bid to meet demand from customers in the technology, manufacturing, and life sciences and healthcare sectors, the twice-weekly charter will begin in Chongqing, China, before flying to Amsterdam, Netherlands; Chicago, United States; Incheon, South Korea, before returning to China.

    Thomas Mack, Global Head of Air Freight DHL Global Forwarding, commented: “While some passenger airlines have resumed operations, the situation in the air freight market remains volatile – especially as belly capacity is still tight As the leader in the air freight market, DHL Global Forwarding’s top priority is to provide our customers with sufficient and reliable air freight capacity. Not only are the resilient, agile, and reliable supply chains of highest importance for an economic recovery, but also in preparation for the availability of vaccines and other essential medical supplies during the pandemic.”

    South Korea has overseen the export of healthcare products significantly increase year-on-year by 26.7% during the first half of 2020, with pharmaceutical goods, in particular, rising by 52.5%. China exported 28.5% more medical devices during the first five months of the year in comparison to 12 months ago. In 2019, China, the Netherlands and the United States were among the leading 10 importers and exporters of medical goods.

    The news follows DHL and McKinsey’s whitepaper that focused on delivering stable logistics for vaccines and medical supplies during COVID-19. As a result of the collaboration, the aim is to provide global coverage of COVID-19, up to 200,000 pallet shipments, and 15 million deliveries in cooling boxes, as well as 15,000 flights across a number of supply chain set-ups.

    “Over the years, DHL has built up its expertise from globally certified facilities and staff to technologies that track shipments in real-time in addition to ensuring the integrity of such products throughout their journey. Getting the much-needed air capacity is the last piece in the value chain puzzle, so to speak, that ensures temperature-sensitive products such as life-saving vaccines reach the communities-in-need,” added Mack.

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  • Kerry Logistics crowned the winner of the CILT Award 2020 Enterprise Award for Service Excellence

    Kerry Logistics crowned the winner of the CILT Award 2020 Enterprise Award for Service Excellence

    Kerry Logistics Network Limited is delighted to be crowned the winner of the CILT Award (the ‘Award’) 2020 – Enterprise Award for its outstanding service.

    Organised biennially by the Chartered Institute of Logistics and Transport in Hong Kong (‘CILTHK’) to recognise professional excellence and promote the best practice of transport and logistics, the Award is categorised into two streams – the Enterprise Award and the SME Award. A five-member judging panel, consisting of industry practitioners, academics and professionals, presided over the assessment to laud service excellence. The awardees were selected based on seven criteria, namely, customer satisfaction, achieving United Nations Sustainable Development Goals, infrastructure, innovation, operational effectiveness, quality management and risk management & control.

    William Ma, Group Managing Director of Kerry Logistics Network, said, “We are very excited to win this award. CILTHK is a renowned organisation that has been making great contribution to the development of professionals for the logistics and transport industry in Hong Kong. While we celebrate this honour, we also feel a sense of responsibility and pride in our job as a logistics service provider, at a time when the global supply chain is facing unprecedented chaos. Logistics demands are coming from all quarters, and the role that the logistics industry plays in supporting everyday lives is more important than ever. It is a role that Kerry Logistics is equipped and ready to play well.”

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