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Shaping the Future: DHL’s Strategic Leap into Digitalization, Sustainability & Infrastructure Growth in Asia Pacific

DHL Express has confidently set its sights on growth amidst a rapidly changing global trade environment. The company is guided by its recently launched Strategy 2030, marking a full year of an ambitious plan. CEO for Asia Pacific, Ken Lee, explains that the strategy focuses on harnessing key strengths such as a robust and resilient network, deep industry know-how, and a dedicated workforce. Simultaneously, it emphasizes proactive investments in infrastructure, digital transformation, and sustainability in order to capture opportunities in high-growth sectors.

Strategic Highlights

Strategy 2030 outlines five primary areas of growth: capitalizing on geographic advantages, targeting life sciences and healthcare, focusing on new energy, bolstering e-commerce, and enhancing digital sales. Additionally, it introduces a new “fourth bottom line” aimed at making DHL the preferred choice for green logistics, reflecting the company’s commitment to leading in low-carbon logistics.

DHL’s investments in infrastructure, including expanding air hubs in Hong Kong, Singapore, and Kuala Lumpur as well as modernizing the Air Hong Kong fleet, aim to increase resilience, enhance capacity, and offer seamless connectivity across its global network. These tangible improvements are reinforced by innovations in digital technology, robotics, automation, and strategic partnerships to increase Sustainable Aviation Fuel (SAF) usage and develop carbon-neutral facilities. These efforts have led to DHL being recognized as the first-ever Sustainability Advocate of the Year at the 2024 Payload Asia Awards.

Resilience amidst Global Trade Dynamics

Global trade continues to be influenced by changing supply chain patterns, geopolitical tensions, and economic uncertainty. However, DHL maintains a robust position as a logistics leader and trade enabler, underpinned by three core strengths: a complete portfolio spanning air, road, and ocean transportation; a presence in over 220 countries and territories; and a seasoned, committed workforce.

Lee acknowledges the uncertainty of the current trade environment but stresses DHL’s ability to navigate it, citing their agility and flexibility in adapting to shifting customer demands and trade regulations. This resilience bolsters DHL’s capacity to make bold, forward-looking infrastructure investments across the region.

Expanding Hubs and Modernizing Fleet

DHL’s role as a trade facilitator involves assisting customers in expanding internationally. This necessitates a network of hubs and gateways at critical airports, backed by service centers and state-of-the-art ground facilities. In recent years, DHL has consistently invested ahead of demand to accommodate rising shipment volumes.

Significant developments include the second expansion of the Central Asia Hub in Hong Kong in 2023 to meet growing shipment demand within and outside Asia. DHL also opened an expanded gateway in Kuala Lumpur and upgraded its South Asia Hub in Singapore. These improvements cater to expected growth from e-commerce and the region’s increasing importance as a global trading partner.

Additionally, DHL has modernized its fleet, upgrading the Air Hong Kong-operated fleet with 14 new A330 freighters and retiring the older A300-600 aircraft. Lee notes that companies are increasingly requiring their suppliers to diversify sourcing options to minimize operational risks, and this is where DHL’s expertise comes into play.

Operational Excellence and Customer Flexibility

DHL’s success is not solely defined by its physical infrastructure. The company is also deeply integrating advanced digital technologies into its operations to streamline workflows, enhance service quality, and create a safer, more efficient working environment.

In warehouses, AI-based tools and robotics platforms are reducing travel distances for staff and speeding up robot integration. Automated guided vehicles transport shipments and cargo pallets safely, improving productivity while relieving employees from strenuous tasks.

The introduction of On-Demand Delivery (ODD) offers customers the flexibility to reschedule contactless deliveries at their convenience. This not only optimizes operational and cost efficiencies but also enhances the overall customer experience.

Green Logistics and Decarbonization

DHL Express’ commitment to sustainability is evident in its recognition as the first-ever Sustainability Advocate of the Year at the 2024 Payload Asia Awards. With a clear target of achieving net-zero greenhouse gas emissions by 2050, DHL is advancing initiatives such as fleet electrification, carbon-neutral building design, and scaling of SAF adoption.

However, the scaling of SAF does pose its challenges. Lee acknowledges that supply has not yet reached economies of scale, which is why DHL is investing in SAF and other areas that can significantly reduce GHG emissions. DHL is also aiming to electrify two-thirds of its pickup and delivery fleet by 2030, although progress in some markets is limited due to the lack of mature charging infrastructure.

Future Growth and Employee Contribution

Looking ahead, DHL is focusing on 20 markets worldwide that exhibit strong geographic and economic advantages, two-thirds of which are in Asia. These markets are expected to benefit from increasing domestic and foreign investment, reshoring, and nearshoring strategies.

Life sciences and healthcare logistics remain a top priority, with DHL expanding its Health Logistics division and strengthening its pharmaceutical capabilities. Growth in e-commerce, particularly in emerging markets, also shows no signs of slowing down. “With more SMEs turning to e-commerce to engage more customer segments, we continue to put resources into capturing these opportunities,” Lee says.

Lee emphasizes that DHL’s ability to execute these ambitious plans relies on its people. Hence, the company offers training programs to ensure staff alignment with DHL’s culture and equips them with tools for continuous improvement. Emphasizing the importance of employee contribution, Lee encourages team members to contribute ideas and solutions, thereby fostering a sense of ownership over initiatives.

Shaping the Future of Logistics

Beyond its network, DHL engages with partners, regulators, and governments to strengthen the logistics ecosystem. Lee underscores the importance of public forums, workshops, and seminars to identify sector challenges and encourage collaboration. Despite global uncertainties, Lee remains optimistic, attributing DHL’s competitive edge to the strength of its group and its presence in many markets worldwide.

Questions & Answers

What is DHL’s Strategy 2030?
Strategy 2030 focuses on harnessing key strengths such as a robust and resilient network, deep industry know-how, and a dedicated workforce. It emphasizes proactive investments in infrastructure, digital transformation, and sustainability in high-growth sectors.

How is DHL addressing the challenge of sustainability in its operations?
DHL is advancing initiatives such as fleet electrification, carbon-neutral building design, and scaling of Sustainable Aviation Fuel (SAF) adoption. The company aims to achieve net-zero greenhouse gas emissions by 2050.

What role do DHL’s employees play in the company’s strategic plans?
CEO Ken Lee emphasizes that DHL’s ability to execute ambitious plans relies on its people. The company offers training programs to ensure staff alignment with DHL’s culture and equips them with tools for continuous improvement. Employees are encouraged to contribute ideas and solutions, fostering a sense of ownership over initiatives.

November 10, 2025
Cargojet Bolsters Global Presence: New Direct Air Cargo Service Bridges Canada and Europe

Cargojet Inc. has expressed delight in the launching of a direct air cargo service bridging Canada and Europe, set to commence on November 1, 2025. The service will establish a connection between Liege Airport (LGG), an outstanding cargo gateway in Europe, and the principal cargo hubs in Canada.

Strengthening Transatlantic Ties

Co-CEOs of Cargojet, Pauline Dhillon and Jamie Porteous, jointly remarked on the new service. They asserted that this move would further solidify the ties between Canada and Europe, in addition to offering broader opportunities for their clientele. They further noted that by leveraging Cargojet’s unmatched reputation for punctuality and dependability, the service is set to position Cargojet at the heart of transatlantic trade. This will effectively cater to the forwarder community’s changing demands by providing quicker transits, reliable service, and superior flexibility for shippers across both continents.

Welcome to Liege Airport

VP Marketing & Sales at Liege Airport, Torsten Wefers, voiced his excitement about welcoming Cargojet to Liege Airport, which is acknowledged as one of the top cargo hubs in Europe. He emphasized that this collaboration signifies a significant advancement for the LGG community and Europe-Canada logistics, providing new prospects and connectivity for their clients and partners.

Expansion of Global Network

This weekly service denotes a considerable broadening of Cargojet’s global network, guaranteeing customers reliable, time-sensitive capacity and improved intercontinental connectivity. Incorporated within Cargojet’s domestic overnight network, the route promises to offer streamlined connections throughout Canada, enhancing overall transit times and providing increased flexibility for freight forwarders, logistics providers, and shippers.

The route, initially operating once a week, improves access to one of Europe’s most strategic cargo hubs, with intentions to amplify frequency as demand and opportunities persistently grow. This integration bolsters Cargojet’s long-term expansion design and reaffirms its status as a dependable associate in the global logistics market.

Questions & Answers

What is the significance of Cargojet’s new direct air cargo service?
The service strengthens the ties between Canada and Europe, expands opportunities for Cargojet’s customers, and positions the company at the center of transatlantic trade.

What benefits does the weekly service provide?
The service extends Cargojet’s global network, offers reliable, time-sensitive capacity, and enhances connectivity across continents. It also provides streamlined connections throughout Canada and increased flexibility for freight forwarders, logistics providers, and shippers.

What are the future plans for this route?
Initially, the route will operate once a week, with plans to increase frequency as demand and opportunities continue to grow. This move supports Cargojet’s long-term expansion strategy in the global logistics market.

November 5, 2025
J&T Express Rides Southeast Asia Wave, Achieves 23% YoY Surge In Q3 Parcel Volume

Global logistics service provider, J&T Global Express Limited, has released its operational data for Q3 of 2025. The company witnessed a year-on-year growth of 23.1% as of September 30, 2025, accumulating a total parcel volume of approximately 7.68 billion. The average daily parcel volume stood at 83.4 million, with all primary markets seeing double-digit growth. The most significant expansion was witnessed in Southeast Asia and new markets.

Impressive Growth in Southeast Asia

As the top express delivery company in Southeast Asia by market share, J&T sustained significant growth momentum throughout the third quarter in the region. The parcel volume in Southeast Asia escalated to 2.00 billion, marking a staggering 78.7% increase year-on-year. The average daily parcel volume in the region was recorded as 21.7 million. The company saw an increase in the number of outlets in the region, reaching 10,700 at the end of September 2025 — a rise of 900 compared to the end of the year 2024. The increase in parcel volume also stimulated higher demand for line-haul capacity, resulting in the number of line-haul vehicles in Southeast Asia rising to 5,500 in the third quarter, a jump of 900 from the end of 2024.

Positive Performance in China and New Markets

Despite fierce competition in China, J&T managed to maintain a healthy double-digit year-on-year growth rate of 10.4% in Q3. The parcel volume reached 5.58 billion, with an average daily parcel volume of 60.6 million. In the case of new markets, including Saudi Arabia, the UAE, Mexico, Brazil, and Egypt, J&T’s parcel volume for the third quarter clocked in at 104 million, a robust year-on-year surge of 47.9%. The average daily parcel volume in these markets was 1.13 million.

Questions & Answers

What was J&T Global Express Limited’s total parcel volume for Q3 of 2025?
The company experienced a total parcel volume of approximately 7.68 billion.

How much did the parcel volume grow in Southeast Asia?
The parcel volume in Southeast Asia reached 2.00 billion, marking an impressive year-on-year growth of 78.7%.

What was the year-on-year growth in new markets?
In new markets, J&T’s parcel volume for the third quarter saw a robust year-on-year surge of 47.9%, reaching 104 million.

October 31, 2025
FedEx Bolsters APAC-Europe Trade Lane with Five New Weekly Flights, Fueling E-commerce and Retail Growth

Federal Express Corporation (FedEx), a prominent international express transportation corporation, recently disclosed its plans to add five additional weekly flights connecting the Asia Pacific region (APAC) with its European base at Paris Charles de Gaulle Airport. This move will not only reinforce the reliability of services on the Asia-Europe trade route but also paves the way for businesses to access European markets swiftly and reliably. Moreover, this move comes just in time for the year-end holiday shopping season, offering businesses increased flexibility.

Details of the Expansion

The additional flights will emanate from two main hubs: three flights from the FedEx APAC hub at Guangzhou Baiyun International Airport and two from the FedEx Shanghai International Express and Cargo Hub. Employing Boeing B777 freighters, all flights will connect directly to the FedEx European hub at Paris Charles de Gaulle Airport.

This expansion will augment the average daily capacity between APAC and Europe, enabling businesses in the area to leverage growth prospects in sectors experiencing high demand, such as e-commerce, manufacturing, hi-tech, and retail industries. The Europe-Asia trade lane has been thriving, with a consistent increase in air freight volume over the previous two and a half years and an impressive 13% year-on-year surge in August 2025.

The European Union serves as the largest import market for more than 100 countries, with APAC economies being among the fastest-growing suppliers. This upward trend is expected to accelerate as businesses are seeking out new trade and growth prospects in Europe.

Supporting Asia-Europe Trade

Salil Chari, Senior Vice President of Marketing and Customer Experience, Asia Pacific, FedEx, noted that the Asia-Europe corridor is one of the fastest-growing trade routes. According to a survey conducted by FedEx of nearly 4,000 customers in Asia this year, over 20% stated plans to shift their trading focus to Europe within the coming year.

FedEx’s increased service frequency between APAC and Europe means that the company now operates 26 weekly flights connecting APAC deliveries to Europe. This enhanced service allows express shipments to reach major European destinations in as little as 48 hours. FedEx has also improved its connectivity from Northern Vietnam to Europe, further strengthening trade links for Asia’s importers and exporters.

Long-term Commitment

This expansion of flight services underlines FedEx’s long-term commitment to facilitating global commerce and boosting the success of businesses across the Asia Pacific and beyond.

Questions & Answers

How is FedEx enhancing its services?
FedEx is adding five additional weekly flights connecting the Asia Pacific region to its European base at Paris Charles de Gaulle Airport.

Which sectors will benefit from this expansion?
High-demand sectors such as e-commerce, manufacturing, hi-tech, and retail industries will benefit from this expansion.

What is the frequency of FedEx’s service between APAC and Europe?
With the increased service frequency, FedEx now operates 26 weekly flights connecting Asia Pacific deliveries to Europe.

October 31, 2025
Thai Airways Partners With Unilode For Advanced Uld Management: A Leap Towards Operational Excellence And Sustainability

THAI Airways, Thailand’s national airline, has named Unilode Aviation Solutions, a leader in the Unit Load Device (ULD) management, repair, and digital solutions realm, as its provider for comprehensive ULD management services.

Advancing THAI Airways’ Transformation

The partnership with Unilode Aviation Solutions signifies a significant stride in THAI Airways’ ongoing evolution, underlining the airline’s commitment to operational excellence, digital innovation, and long-term sustainability throughout its international network.

After a successful business rehabilitation, THAI Airways is embarking on a new chapter of growth and modernization. The airline’s five-year strategic plan includes a focus on operational excellence, fleet renewal, and digital transformation. It also aims to nearly double its fleet to approximately 150 aircraft by 2033 and expand its market share across essential international markets.

In collaboration, Unilode will deliver extensive ULD management, maintenance, repair, and digital tracking services across THAI Airways’ international network. This partnership will enhance fleet utilization, decrease operational complexity, and boost reliability for THAI Airways’ passenger and cargo operations.

Sustainability Goals Alignment

The alliance with Unilode Aviation Solutions aligns closely with THAI Airways’ sustainability objectives. The pooling of assets across Unilode’s international network results in fewer ULDs required to support operations, thereby diminishing raw material consumption, minimizing waste, and reducing carbon emissions. Unilode’s centralized repair and refurbishment service further prolongs asset lifecycles, promoting circular economy principles and more responsible resource use.

Unilode’s digital platforms and data-driven insights, leading the market, will offer THAI Airways real-time visibility, improved asset utilization, and enhanced sustainability reporting throughout its operations. Unilode’s Operations Control Centre in Bangkok and a global team of over 800 ULD experts further support the partnership, ensuring local responsiveness and customer success at every interaction.

Investment and Expansion

Unilode has made significant investments over recent years, strengthening its infrastructure, expanding its Maintenance, Repair and Overhaul (MRO) footprint, and enhancing its workforce through advanced training, development, and external education programs. These initiatives, coupled with ongoing innovation in digital technology and product development, enable a broader international network and a larger, more flexible pool of assets, yielding higher efficiency, resilience, and service reliability for all airline partners.

Unilode’s expanding asset base across an increasing number of airports and regions continues to provide tangible benefits to its entire customer network. These benefits include improved operational agility, quicker turnaround times, and greater access to resources and repair capabilities. These investments underscore Unilode’s commitment to long-term growth and customer value creation, reinforcing its position as a global leader in sustainable ULD management.

As airlines worldwide prioritize sustainability and efficiency, ULD pooling and complete service management are rapidly becoming the industry norm. THAI Airways’ collaboration with Unilode emphasizes its leadership in adopting innovative, environmentally responsible solutions that combine operational excellence with long-term sustainability.

Expert Opinions

Ross Marino, Chief Executive Officer at Unilode Aviation Solutions, expressed his delight and pride in becoming THAI Airways’ comprehensive ULD management service provider. He believes that their partnership will yield measurable results, improve efficiency, foster digital transformation, and support THAI Airways’ sustainability goals.

The Head of Cargo & Mail Commercial at THAI Airways acknowledged the partnership with Unilode as a critical step in their transformation strategy. They believe Unilode’s expertise, global network, and digital solutions will help streamline operations, fortify reliability, and make substantial progress towards sustainability goals.

Questions & Answers

What does the partnership between THAI Airways and Unilode Aviation Solutions signify?
The partnership signifies a significant stride in THAI Airways’ ongoing evolution, reinforcing the airline’s commitment to operational excellence, digital innovation, and long-term sustainability throughout its international network.

How will Unilode Aviation Solutions assist THAI Airways?
Unilode will deliver extensive ULD management, maintenance, repair, and digital tracking services across THAI Airways’ international network. This collaboration will enhance fleet utilization, decrease operational complexity, and boost reliability for THAI Airways’ passenger and cargo operations.

How does this collaboration align with THAI Airways’ sustainability goals?
By sharing assets across Unilode’s international network, fewer ULDs are required to support operations, thereby diminishing raw material consumption, minimizing waste, and reducing carbon emissions. Unilode’s centralized repair and refurbishment service further prolongs asset lifecycles, promoting circular economy principles and more responsible resource use.

October 17, 2025
Ikea Acquires Us Tech Firm Locus To Reinforce Delivery Services And Optimize Online Shopping Experience

Swedish furniture giant Ikea has announced the acquisition of US-based logistics technology company, Locus. This strategic move is aimed at enhancing Ikea’s delivery services and facilitating a faster and more streamlined online shopping experience.

The Strategic Acquisition

The acquisition is part of a broader $2.2 billion strategic investment by the Ingka Group, the world’s largest Ikea franchisee, in the US market. In the highly competitive US retail sector, Ikea is up against major players like Wayfair and Walmart, while also grappling with increased costs due to higher import tariffs.

While the specifics of the deal have not been made public by Ikea, Locus was valued at $300 million during its most recent investment round in 2021. Ikea’s decision to acquire Locus is projected to simplify its logistics framework and decrease delivery costs by an estimated 100 million euros ($117.41 million) globally each year.

Utilizing Artificial Intelligence

Locus employs artificial intelligence to optimize the grouping of orders and define routes that reduce time spent in traffic by delivery vehicles. This is a significant improvement over the current manual planning process carried out by Ikea employees, according to Parag Parekh, Chief Digital Officer at Ingka Group.

In addition to delivering faster, Locus will also facilitate Ikea in providing customers with more delivery windows and options. Shoppers will also receive live updates on the location of their packages. Initially, Ikea plans to pilot this technology in the US and UK before implementing it worldwide.

Improving the Customer Experience

“Apart from the aspect of speed, the flexibility and the ability to track will significantly improve customer experience,” explained Parekh. As part of the agreement, Locus will continue operating independently and servicing clients beyond Ikea.

Expansion in the US Market

With a reputation for its large, blue suburban stores featuring an array of furniture in a maze-like layout, Ikea has been shifting its focus towards its online business and investing in smaller city-center stores to attract younger, urban shoppers.

Online sales constituted 28% of Ikea’s total retail sales in the 2024 financial year, a significant increase from 11% in 2019. This strategic acquisition follows Ingka Investments’ purchase of a Manhattan building for $213 million, indicating a commitment to US expansion, despite higher furniture import tariffs.

Questions & Answers

What is Ikea’s aim with the acquisition of Locus?
Ikea aims to enhance its delivery services and facilitate a faster, more efficient online shopping experience with the acquisition of Locus.

How will Locus’ technology benefit Ikea’s operations?
Locus’ artificial intelligence technology will allow Ikea to optimize the grouping of orders and define delivery routes, reducing delivery times and associated costs. It also enables Ikea to offer customers more delivery options and real-time tracking of their packages.

What impact has the focus on online sales had on Ikea’s business?
The focus on online sales has significantly boosted Ikea’s retail sales, accounting for 28% of total sales in the 2024 financial year, up from 11% in 2019.

October 8, 2025
Exploring the Stability of Kuala Lumpur’s Logistics Sector: Insights for 2023

The logistics landscape in Kuala Lumpur is poised for remarkable stability through 2025, as detailed in a recent report by JLL. This trend is largely fueled by the booming e-commerce sector and the global technology upcycle, spurred on by a surge in artificial intelligence (AI) innovations that are reshaping the demand for modern logistical spaces.

Tax Changes and Market Adjustments

A significant shift is on the horizon with Malaysia’s expansion of the Sales and Service Tax (SST), effective July 2025. This adjustment brings real estate leasing transactions into the tax fold, introducing an 8% taxation rate. As landlords and tenants grapple with these changes, negotiations will likely become central to finding a balance in operational costs.

Rapid Growth in Logistics Properties

The logistics property sector is experiencing exceptional growth, propelled by new developments that are witnessing impressive net absorption rates. High-quality facilities are attracting eye-catching tenancies from leading sports brands and consumer goods companies.

This surge can be predominantly traced back to sectors such as Automotive, Electrical and Electronics (E&E), and third-party logistics (3PL) providers, alongside various manufacturers. Current projects are enjoying robust pre-commitment rates, signaling strong market confidence.

Major Developments on the Horizon

In the second quarter of 2025, notable expansions in Shah Alam and Pulau Indah added approximately 2 million square feet of Grade A warehouse space to the market, answering specialized demand from the Automotive and E&E industries. Surprisingly, vacancies remain astoundingly low, at just 2%, even amid these new deliveries. Companies are increasingly migrating towards premium quality spaces, indicating a clear preference for top-tier facilities.

Stability Amid Potential Challenges

Despite some anticipated challenges, such as increases in SST and electricity costs slated for July, rental rates have held steady within the market. Pulau Indah, in particular, has seen notable growth as emerging prime facilities close the gap with more established submarkets.

Real Estate Investment Trusts (REITs) are actively expanding their portfolios through strategic acquisitions. A prime example is AmanahRaya REIT’s acquisition of a warehouse in Kuala Langat through a sale-and-leaseback arrangement, which not only secures stable income but also assures operational continuity for the tenant—a win-win in today’s fast-paced market.

Questions & Answers

What key factors are driving growth in the logistics sector in Kuala Lumpur?
The logistics sector’s growth is primarily driven by the expansion of e-commerce, the Automotive and Electrical and Electronics industries, along with 3PL providers, each increasing demand for modern storage solutions.

How will the new Sales and Service Tax affect landlords and tenants?
The introduction of the 8% SST on real estate leasing transactions will likely prompt landlords and tenants to engage in negotiations to adapt to the new tax landscape, helping to manage the impact on operational costs.

What does the current vacancy rate suggest about the market?
With the vacancy rate at an impressive 2%, the logistics market shows strong demand dynamics, as companies prefer to incorporate higher-quality spaces, indicating a healthy appetite for premium logistical solutions.

September 22, 2025
Karen Tan Assumes Role As Dhl Express’s Cio For Asia-pacific Region: A Stepping Stone For Digital Innovation

DHL Express, the internationally recognized express service provider, recently announced the appointment of Karen Tan as the Chief Information Officer (CIO) for the Asia-Pacific region. Tan, who is based in Singapore, will assume the position currently held by Jimmy Yeoh, who is set to retire from the organization at the close of 2025 after thirty-three years of dedicated employment.

Karen Tan’s Professional Journey

Prior to accepting this new position, Tan held the role of CIO for DHL Express Singapore. In this capacity, she led the creation of a comprehensive digitalization framework. She also implemented robust data protection and information security practices, significantly enhancing both employee engagement and leadership scores within her IT team.

Tan served as the company’s Data Protection Officer (DPO) Champion as well, collaborating with global DPO and legal teams to ensure the implementation of policies and procedures to effectively manage personal data. Furthermore, Tan was the DEIB (Diversity, Equity, Inclusion & Belonging) Champion, leading initiatives such as International Women’s Day, International Men’s Day, and Generations Day, fostering an inclusive and empowered workplace culture.

New Role Expectations

In her new role, Tan will manage the region’s IT infrastructure, the digital acceleration plan, and the cybersecurity strategy, supporting a network that extends over 40 countries and territories. Her leadership will be central to promoting cross-functional collaboration and communication among various teams, essential for maintaining smooth cross-border trade and delivering superior service to customers across the region.

Company Statements

Ken Lee, the CEO for Asia Pacific at DHL Express, considers digitalization as one of the major trends that will impact the logistics industry. The company’s Strategy 2030 emphasizes the growth of this segment to expedite digital innovation for an enhanced customer experience. Lee praised Tan’s record of driving digital acceleration, data protection, and cross-functional collaboration, and her passion for innovation.

On her part, Tan recognizes the importance of meeting the challenges of cybersecurity and data protection as digital ecosystems become increasingly complex. She expressed her honor in assuming her new role and her commitment to maintaining the standards and quality of the employee and customer experiences.

Professional Background

Tan commenced her career at DHL Express in 1990 in the role of a customer service trainer. She has held a variety of positions across the DHL Group in the ensuing years, including roles in IT, commercial operations, and regular operations. From 2014, she held the position of Vice President of Operations Programs for the Asia Pacific region, before being appointed the CIO at DHL Express Singapore in 2021.

Questions & Answers

Who has been appointed as DHL Express’s new CIO for the Asia-Pacific region?
Karen Tan has been appointed as the new CIO for the Asia-Pacific region.

What were some of Tan’s responsibilities in her previous role as CIO for DHL Express Singapore?
In her previous role, Tan led the development of a nationwide digitalization framework and strengthened data protection and information security practices. She also worked to improve employee engagement and leadership scores within the IT team.

What will be some of Tan’s main responsibilities in her new role?
As the CIO for the Asia-Pacific region, Tan will oversee the region’s IT infrastructure, manage the digital acceleration roadmap, and strategize cybersecurity measures. Her leadership will be crucial in facilitating cross-functional collaboration and communication across multiple teams.

September 16, 2025
Jakarta’s Prime Logistics Supply Set to Expand to 3.2 Million Square Feet by 2025

Record growth is on the horizon for Jakarta’s logistics sector as the city prepares for a significant surge in demand for industrial spaces by FY2025. A recent report from JLL forecasts that nearly 250,000 square meters of new logistics facilities will become available in 2025, leading to a cumulative supply of around 3.2 million square meters. This is expected to keep vacancy rates impressively low, around 9%.

Barriers to Competitiveness in the Market

However, various challenges must be overcome to bolster global competitiveness and attract foreign direct investment (FDI). The report highlights the need for improvements in permitting processes and the enhancement of supporting infrastructure within industrial estates.

Chinese Companies Drive Demand

Interestingly, over half of the inquiries for these spaces originated from Chinese enterprises pursuing multi-functional industrial complexes that integrate warehousing, workshop, and assembly capabilities. Key sectors fueling this demand include electric vehicles, electronics, and automotive industries.

Healthy Absorption Rates

Net absorption rates have remained robust, surpassing 100,000 square meters, in alignment with the previous quarter’s performance. The lion’s share of this demand is concentrated in Cikarang, known for its accessibility to toll gates, with additional activity noted in Depok-Bogor and Karawang.

Tightening Vacancy Rates

The market experienced a drop in vacancy rates from 9.5% to an impressive 5.9% due to a lack of new completions in Q2, underscoring the sector’s resilience amid soaring demand. Analysts project several new developments will come to fruition in the latter half of 2025, primarily located in Jakarta, Cikarang, and Karawang, totaling around 242,600 square meters.

The Eastern Corridor: A Preferred Hub for Manufacturing

The eastern corridor, particularly Cikarang and Karawang, is anticipated to contribute an additional 102,400 square meters of new supply in H2 2025, continuing its appeal as a vital testing ground for foreign manufacturers eyeing the Indonesian market.

Rental Rates Hold Steady with Competitive Strategies

Despite the fluctuations in demand, rental rates have remained stable. Landlords in the eastern corridor are employing flexible pricing strategies to attract tenants. While net rents have stayed consistent since Q1, certain properties—particularly those near toll gates or with limited availability—have seen modest price increases. Cikarang has notably offered competitive rates to lure businesses.

Rising Land Prices Impact Yield

As land prices escalate, modest rental growth has led to compression in yield, settling between 7.0% and 7.5%. Limited availability of industrial land, particularly in eastern Jakarta, continues to drive prices up, creating a dual-edged sword for developers and investors alike.

Questions & Answers

What is driving the increased demand for logistics spaces in Jakarta?
Demand is largely fueled by Chinese companies seeking multi-functional industrial areas, with significant contributions from the EV, electronics, and automotive sectors.

How have vacancy rates changed recently?
Recent analysis indicates that vacancy rates have tightened from 9.5% to 5.9% due to strong demand and a lack of new completions in the second quarter.

What strategies are landlords using to attract tenants in the eastern corridor?
Landlords are implementing flexible pricing strategies to entice tenants, maintaining competitive rates while adapting to market fluctuations.

September 9, 2025
China’s Delivery Giants Face Off: What the Market Share Battle Means for the Future

The on-demand delivery landscape in China is heating up, with three leading platforms bracing for increased costs and tighter margins as competition intensifies. A fresh analysis from S&P Global Ratings reveals that aggressive promotional strategies, including enticing offers like free fresh-made beverages, are prompting platforms to invest heavily—projected at a staggering RMB 160 billion over the next 12 to 18 months—in their fight for market share in the food delivery and instant retail sectors.

“With such a fierce competitive atmosphere, monitoring for unfair pricing practices has become essential,” remarked Jay Lau, an analyst at S&P Global Ratings. The Chinese government is actively reevaluating its policies regarding pricing fairness, signaling a commitment to protect merchants from potential exploitation amid these fierce market battles.

Despite the high stakes, S&P Global Ratings anticipates that spending will remain substantial, although they foresee only a modest moderation in expenditures. The on-demand delivery market is poised for strong growth, boasting double-digit growth rates projected for the coming years. Lau pointed out that “cross-selling is a main goal.” The ability to drive frequent on-demand purchases—often happening several times a week—holds the potential to significantly boost traffic and increase sales opportunities.

Among the key players, JD.com and Alibaba stand to gain the most, given their expansive existing retail platforms that facilitate cross-selling. In contrast, Meituan faces a steeper challenge, as food delivery remains the cornerstone of its revenue model. As the battle for market dominance rages on, analysts are cautious, predicting that margins are unlikely to recover in the next 12 to 24 months as this war for market share continues to unfold.

Questions & Answers

What is the expected financial impact on major Chinese delivery platforms?
The competition is likely to drive these platforms to spend around RMB 160 billion in the next 12 to 18 months as they battle for market share, leading to increased costs and squeezed margins.

What role does cross-selling play in on-demand delivery growth?
Cross-selling is crucial, as high-frequency purchases each week can significantly drive traffic and boost overall sales for platforms, particularly for those like JD.com and Alibaba that are well-positioned to leverage their existing retail networks.

How are regulators responding to the competitive atmosphere?
The Chinese government is actively revising its standards on unfair pricing practices and will be closely monitoring leading platforms to prevent any potential exploitation of merchants as competition grows fiercer.

September 4, 2025
Delhi NCR Logistics Space Set to Soar to 108.6 Million Sq Ft by End of 2025!

The National Capital Region’s (NCR) warehousing market is on track to soar to 108.6 million square feet by the end of 2025. This surge is largely driven by Grade A projects, which have captured the interest of institutional investors, as detailed in a recent report by JLL. The Delhi-NH8 submarket is poised to remain at the forefront of this growth.

“Proposed infrastructure projects, particularly along freight corridors such as DMIC, WDFC, and EDFC, are significantly enhancing warehouse demand by improving connectivity between Delhi and surrounding areas in both Western and Eastern India,” the report stated. Smart investments in these corridors are transforming transportation—and possibly saving future delivery delays that plague today’s e-commerce giants.

Explosive Growth in Demand

In a remarkable showing, net demand for warehousing space soared by an impressive 80% year-over-year in the first half of 2025, reaching 4.13 million square feet. Notably, 88% of this demand stemmed from Grade A facilities, highlighting a clear trend toward high-quality spaces. The Delhi-NH8 remained a powerhouse in this surge.

The third-party logistics (3PL) and logistics sectors emerged as the primary demand drivers, closely followed by light manufacturing fields, such as auto components and engineering, which together constituted 58% of the demand during this period. Other notable contributors included fast-moving consumer goods (FMCG), e-commerce, and retail sectors.

Institutional Developers Make Their Mark

The market has witnessed transformative expansion in the first half of 2025, with 4.66 million square feet of new supply entering the fray. Institutional developers and investors are making a strong entrance—particularly concentrated in the lucrative Delhi-NH8 corridor.

Despite this growth, vacancy rates rose to 21.4% in H1 2025, a reflection of the accelerating supply from large Grade A developers that outstripped demand in the market.

Rising Rents Reflect Market Trends

Rents in the NCR have experienced a healthy uptick, rising by 5.3% year-over-year in the first half of 2025. This increase is primarily a response to the surging demand for Grade A spaces that boast superior specifications. With institutional investors gaining a robust foothold, rents are expected to continue climbing, driven by escalating land prices, forthcoming infrastructure projects, and heightened investments.

As the NCR warehousing market evolves, it’s clear that Grade A facilities will remain the main attraction, drawing interest and investment from across the region. In a landscape where quality is becoming king, businesses are increasingly keen to secure their place in this thriving sector.

Questions & Answers

What factors are driving the demand for Grade A warehouse spaces in NCR?
The demand for Grade A warehouse spaces is primarily driven by strong interest from institutional investors and the significant growth of 3PL and logistics sectors. Additional contributors include light manufacturing fields and e-commerce, all seeking high-quality facilities.

How have recent infrastructure projects influenced the warehousing market?
Recent infrastructure projects, especially along freight corridors like DMIC, WDFC, and EDFC, have improved connectivity, boosting warehouse demand by facilitating smoother transport routes between Delhi and surrounding regions.

What does the future look like for rents in the NCR warehousing market?
Rents are projected to continue increasing as demand for Grade A spaces persists, propelled by rising land prices, ongoing infrastructure developments, and the growing presence of institutional investors in the market.

September 3, 2025
DHL Express Appoints Karen Tan as New Asia Pacific CIO, Driving Innovation in Logistics

DHL Express has announced the appointment of Karen Tan as chief information officer (CIO) for Asia Pacific (excluding China), a move that takes effect on September 1, 2025. Positioned in Singapore, Tan steps into her new role following the retirement of Jimmy Yeoh at the end of this year.

Leading Through Digital Transformation

In her capacity as CIO, Tan will oversee the comprehensive IT infrastructure, drive digital acceleration, and formulate cybersecurity strategies across more than 40 countries and territories in the region. Her responsibilities also extend to enhancing cross-functional collaboration, ensuring a smooth flow of cross-border trade, and elevating customer service standards.

Cybersecurity and Customer Experience: A Central Focus

Addressing the growing complexities of digital ecosystems, Tan emphasized the increasing importance of cybersecurity and data protection. “It is essential to uphold the standards and quality of employee and customer experience,” she stated, capturing the balancing act between innovation and security in today’s landscape.

A Seasoned Leader with a Vision

Tan’s affiliation with DHL Express dates back to 1990, where her impressive journey has culminated in her recent role as the CIO for DHL Express Singapore. There, she established a national digitalization framework and bolstered data protection and information security practices. Her influence extends further as the Data Protection Officer (DPO) Champion, as well as a leader in Diversity, Equity, Inclusion & Belonging (DEIB) initiatives, including celebrations for International Women’s Day and Generations Day. Talk about multitasking!

Strategic Alignment with DHL’s Future Goals

Ken Lee, CEO of DHL Express for Asia Pacific, lauded Tan’s extensive experience and successful track record in digital acceleration and data protection, asserting that she is the ideal leader to elevate the region’s IT function. Her appointment aligns seamlessly with DHL Express’ Strategy 2030, which emphasizes digital innovation and resilience in an ever-evolving global trade environment.

Questions & Answers

What key responsibilities will Karen Tan have as CIO of DHL Express for Asia Pacific?
Tan will lead IT infrastructure, digital acceleration, and cybersecurity strategies across an expansive network in over 40 countries, while also enhancing customer service and cross-border trade operations.

How long has Karen Tan been with DHL Express?
Karen Tan has been part of DHL Express since 1990, bringing over three decades of experience to her new role.

What initiatives has Tan led in her previous positions?
She has developed a nationwide digitalization framework in Singapore, championed data protection efforts, and led Diversity, Equity, Inclusion & Belonging initiatives within the company.

September 3, 2025
Alibaba Unveils Bold One-hour Delivery Strategy Amidst Intense E-commerce Competition

In a significant shift within the Asian retail landscape, e-commerce giant Alibaba has unveiled an ambitious plan to reshape its supply chain infrastructure. As the competitive landscape intensifies, Alibaba aims to enhance its logistics capabilities and streamline operations, responding to the increasing demand for faster delivery times and improved customer satisfaction.

Alibaba’s Strategic Goals for Enhanced Logistics

At the core of this initiative is Alibaba’s commitment to achieving a “one-hour delivery” promise in major urban centers. This bold goal reflects a broader industry trend towards rapid fulfillment and personalized service. The retail behemoth is pouring substantial resources into its logistics arm, Cainiao, which is expected to lead the charge in implementing innovative technologies such as artificial intelligence and data analytics to optimize delivery routes and inventory management.

“Hurry up and wait” could soon be a phrase of the past for Alibaba shoppers, as the company plans to leverage its extensive network of fulfillment centers and last-mile delivery partners to reduce shipping times to unprecedented levels. With consumers increasingly expecting instant gratification from their online purchases, Alibaba is determined to stay ahead of the curve, and this strategic pivot could make all the difference.

A Competitive Edge Among Retail Rivals

Alibaba’s strategy comes at a time when its competitors are also racing to improve their logistics operations. Companies like JD.com and Pinduoduo are enhancing their own supply chains to capture a larger share of this rapidly expanding market. However, with its robust resources and technological prowess, Alibaba is well positioned to maintain its dominance in the e-commerce sector.

The company also aims to address the growing challenge of sustainability within the logistics space. By implementing greener practices in its supply chain, Alibaba hopes not only to reduce its carbon footprint but also to appeal to a customer base that is increasingly eco-conscious. Amidst frequent reports about the environmental impact of e-commerce, this move could give Alibaba a dual edge — improving both its operational efficiency and public image.

Collaborations and Innovations on the Horizon

Key to Alibaba’s logistical overhaul will be strategic partnerships with third-party delivery services and technology firms. This collaborative approach is expected to help the company integrate cutting-edge solutions, thus paving the way for more seamless and efficient retail experiences. With the help of emerging technologies like drone deliveries and automated warehouses, Alibaba is venturing into uncharted territory, raising the stakes in the race for e-commerce supremacy.

Not to be outdone, Alibaba has also doubled down on social commerce, creating an ecosystem where shopping and social interaction are intertwined. This not only enriches consumer engagement but also allows the company to harness valuable data insights to tailor its offerings more effectively.

As this logistics game plan unfolds, Alibaba’s commitment to a more responsive and responsible supply chain model could set a new standard in the Asian retail arena.

Questions & Answers

What is Alibaba’s primary goal with its new logistics initiative?
Alibaba aims to achieve “one-hour delivery” in major urban centers, significantly improving delivery times to enhance customer satisfaction.

How is Alibaba addressing sustainability in its logistics operations?
The company plans to implement greener practices in its supply chain to reduce its carbon footprint and appeal to environmentally conscious consumers.

What role do partnerships play in Alibaba’s logistics strategy?
Strategic partnerships with third-party delivery services and technology firms will help Alibaba integrate innovative solutions, enhancing the efficiency and effectiveness of its retail operations.

August 29, 2025
Kardex Launches Affordable AutoStore StarterGrid to Revolutionize Warehouse Automation in Singapore

Global intralogistics specialist Kardex has unveiled its new AutoStore™ StarterGrid, which is an affordable, plug-and-play automated storage and retrieval system (ASRS) now available to customers in Southeast Asia. It immediately streamlines storage and fulfilment operations and is targeted at startups, small and medium-sized businesses, and companies wanting to test the impact of automation on their warehouse operations.

Kardex, the world’s fastest-growing AutoStore integrator, has exclusively designed and configured the 4,000-bin system to provide customers with the chance to embrace warehouse automation without complexity, high costs or long lead times. It provides the ideal starting point for automation, as it is easy to install, built for simplicity, and could cost companies in Singapore as little as S$8,300 a month.

AutoStore StarterGrid: Scalable, precise, and maximizing warehouse space

AutoStore is the world’s fastest goods-to-person (GTP) system per square-meter and maximizes space efficiency, reducing warehouse footprint by over 50% and increasing storage capacity. The AutoStore StarterGrid from Kardex can be installed into existing facilities without costly adaptations or power upgrades.

Precise AutoStore robots can boost picking accuracy up to 99% and throughput can double or even triple compared with manual operations. In addition, the AutoStore ASRS solution enhances warehouse safety and carries out mundane, physically demanding and repetitive tasks, freeing workers up to carry out more rewarding work.

Designed with scalability in mind, the Kardex AutoStore StarterGrid can be easily expanded without disrupting business operations or requiring any rework, with new ports and robots added swiftly to meet surges in demand. As company needs grow, the grid can even be customized by Kardex to meet evolving requirements.

A 4,000-bin ASRS solution within 6 months

The AutoStore StarterGrid from Kardex offers a standardized, pre-configured setup featuring all the essential components to start automating quickly and efficiently. It is simple and hassle-free to implement, comprising a compact, high-density Grid Frame of up to 6 meters, 4 R5 Robots for fast, accurate item retrieval, 4,000 storage bins, and 2 efficient Conveyor-Ports for precise order picking – handling 180 to 240 bins per hour with 99% accuracy.

Return on investment (ROI) for new solution is 2-3 years on average and businesses can reach out to Kardex to find out more, with a dedicated project team providing expert end-to-end guidance to unlock the benefits of automation within 6 months. In Singapore, the Kardex AutoStore StarterGrid could cost as little as S$8,300 per month, delivering dramatic improvements in storage density, fulfilment accuracy and throughput.

Kardex: An expert AutoStore integrator and innovator

Businesses that want to find out more about the impact AutoStore could have on their operations can visit Kardex’s new office and Experience Center in Singapore. The new facility, recently opened in the Nordic European Centre at the International Business Park, positions Kardex for further growth in Southeast Asia and provides a dedicated space for customers to meet with the expert team and see firsthand how AutoStore systems powered by Kardex can revolutionize their operations.

Kardex also has the most extensive portfolio of exclusive products designed to enhance the AutoStore system. These include: the purpose-built FulfillX warehouse execution system (WES), designed to streamline operations and enhance performance; the Intuitive Picking Assistant (IPA), which guides operators through the picking process by projecting all relevant information to optimize picking efficiency and accuracy; and the SnapVac cleaning robot to keep the AutoStore grid free from dust, debris, and operational slowdowns.

Freddy Zhong, APAC Director of Business Development for AutoStore, says, “Smarter automation starts with smart prices. The AutoStore StarterGrid from Kardex provides companies of all sizes with automation that’s practical for today AND prepares them for tomorrow. We want to get through to the people who think that warehouse automation is not for them or is too expensive. The StarterGrid has been specially designed for companies that want to improve their storage and fulfillment operations with a solution that is fast to implement, scalable and efficient.”

July 26, 2025
SeaCube Cold Solutions Partners with The Wonderful Company to Establish Primary California Depot in Shafter

SeaCube Cold Solutions (SCS), an affiliate of SeaCube Container Leasing and a leading provider of portable cold storage, announces a new partnership with The Wonderful Company. Under this agreement, The Wonderful Company’s Shafter facility will serve as the primary California depot for SCS, providing reefer storage and maintenance and repair services in the region.

As part of SeaCube Container Leasing, SCS is backed by over 30 years of experience in refrigerated equipment, providing unmatched reliability and innovation in cold chain logistics. This new facility in Shafter represents a significant step forward in SeaCube’s investment in strategically located infrastructure to support its growing SCS customer base.

“Partnering with The Wonderful Company at the Shafter depot marks a significant step in strengthening our presence in a key logistics corridor,” said James Armstrong, Senior Vice President of SeaCube Cold Solutions. “We’re excited to launch operations at the Shafter, California depot, where we are establishing a significant refrigerated container presence to support not only California’s Central Valley but also a 250-mile radius.

This location strategically extends our reach across the West Coast, including Arizona and Nevada. With the addition of Shafter, SeaCube Cold Solutions now has full coverage over the entire Southwest Region.”

The Shafter depot will serve as a hub for both storage and maintenance of SeaCube refrigerated containers. Its strategic location offers direct access to key customers in California’s Central Valley, while its position within a less congested logistics park provides efficient transportation routes to the Los Angeles basin, Arizona, and Nevada. SeaCube is the first—and currently the only—reefer operation at the facility.

“SeaCube’s portable cold storage solution offers tremendous flexibility during seasonal market fluctuations. We are pleased to have their support and involvement in the Wonderful Logistics Center,” said Sepehr Matinifar, Vice President of Logistic Services at the Wonderful Company.

July 24, 2025