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Tag: Logistics

  • Asian markets carry Kerry Logistics to new profit heights, despite China dip

    Asian markets carry Kerry Logistics to new profit heights, despite China dip

    Asia powered Kerry Logistics to a strong 2017 performance, with double-digit growth in revenue and profits. Turnover was up 28% year on year to HK$30.7bn (US$3.9bn) generating an operating profit of HK$2.1bn (up 13%) and net profit of HK$1.2bn (up 7%). Group managing director William Ma said the company had benefited from the “upswing” in the global economy, but singled out one region for praise.

    “The overall performance of Asia remained robust, driven by pronounced external demand and rising domestic consumption,” said Mr Ma.

    “We did better in the second half of the year, buoyed by the strength of e-commerce, the sound performance of subsidiary APEX in the Americas and accelerating growth in express business in Thailand.”

    However, it wasn’t all good news for Kerry’s Asian operations – profits from Chinese forwarding and logistics were down 6.9% and 7.5%, respectively.

    Worse performance, though, was from the Taiwanese forwarding division, where profits plummeted more than 39% to HK$4.8m. And European forwarding stayed flat, dipping 0.1% to HK$23.54m.

    However, with the company’s Asian logistics segment seeing a profit surge of 56% to HK$425m, the real figure drop in Taiwan will hardly dent Kerry’s optimism. Group chairman George Yeo said the firm had responded to the needs of its customers over the last 12 months, which had allowed it to improve efficiencies.

    “With the addition of Globalink Logistics and Lanzhou Pacific Logistics, we now have the strongest road and rail freight network across Eurasia,” Mr Yeo said. “The deepening and widening of our capabilities positions us well for rapidly growing cross-border e-commerce, which is facilitated by better physical connectivity and greater international cooperation.

    “As we continue to bring in catalysts to drive the scale, volume, and efficiency of our global IFF network, the Group is optimistic to deliver sustainable results.”

    Considering the strong express performance, powered by e-commerce, the company said it planned to roll out express operations in Malaysia, Singapore, and Vietnam.

    But it also announced it had disposed of its rail terminal business in Adelaide, in January, and would be selling its 15% stake in Asia Airfreight Terminal.

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  • DHL Express officially opens its new Brussels Hub

    DHL Express officially opens its new Brussels Hub

    DHL Express, the worldwide leader in logistics and express delivery, today opened its new regional hub at Brussels Airport. The state-of-the-art hub is equipped with the most recent logistics technology and will almost quadruple the capacity of DHL Express in Brussels to 42,000 shipments per hour. The hub, an investment of over 140 million euros including lease expenses, has seen the creation of an additional 200 new DHL jobs to date at the airport, three years earlier than initially planned.

    Ken Allen, CEO DHL Express said: “Brussels plays a crucial role in the worldwide DHL Express network. Brussels Hub is one of our largest hubs in the world and because of its location in the logistics heart of Europe, it also plays an important role in connecting companies from this region with the world. This new hub is a key part of our worldwide investment plan and will support our growth, the efficiency of our network and the high level of quality for which customers turn to DHL Express.”

    The new 36,500m² hub (including warehousing and offices) almost quadruples the capacity of DHL Express in Brussels. At full capacity, the hub’s two automated sorting systems can process up to 42,000 packages per hour, making it the fifth largest hub in the global DHL network. It offers air and ground links to a broad number of European destinations, as well as direct intercontinental connections to the Americas, Middle East and Africa.

    Koen Gouweloose, Vice President of DHL Brussels Hub, said: “This new hub is a great example of some of the latest state-of-the-art logistics technology. It allows us to process even more packages even more quickly and efficiently. As a hub, this allows us to play an important role in the network, while paying close attention to security and working conditions for our 1,200 employees, who are in turn ensuring that our clients are receiving the great service they expect from DHL Express.”

    At the official opening of the new hub, DHL Express welcomed 200 VIP guests, among them Belgian politicans, including Vice Prime Minister and Minister of the Interior Jan Jambon, Vice Prime Minister and Minister of Digital Agenda, Telecom and Postal Services Alexander De Croo, Federal Minister of Mobility François Bellot, and Flemish Minister of Mobility Ben Weyts, and major customers, such as the RSC Anderlecht football club and luxury leatherwear producer Delvaux.

    Danny Van Himste, Managing Director of DHL Express Belgium and Luxembourg, said: “The new hub allows us to provide an even better service to our customers. We can help Belgium be even better connected to Europe and the world. We are addressing the needs of customers of all sizes and from all industry sectors in the Belgian market. With the hub giving us extra capacity, speed and flexibility, national borders should be no barrier to our customers.”

    As part of DHL’s GoGreen program the new hub reduces the company’s ecological footprint by 768 tons of CO² per year, thanks to its more efficient sorting techniques and better insulation. It is also certified to the TAPA ‘A’ security standards.

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  • FedEx Hacked, Says No Data Compromised

    FedEx Hacked, Says No Data Compromised

    FedEx said that it has found no evidence that private customer data was “misappropriated” when it was made visible on an unsecured server earlier in February.

    According to news from Reuters, the server that was made visible contained more than 119,000 scanned documents from U.S. and international citizens, including passports, driver’s licenses and security identification. The potentially compromised data had been stored on an Amazon S3 storage service and was collected by Bongo International, which FedEx had acquired in 2014. Bongo, which added up international shipping prices, was terminated by the company.

    “After a preliminary investigation, we can confirm that some archived Bongo International account information located on a server hosted by a third-party, public cloud provider is secure,” FedEx spokesman Jim McCluskey said in a statement. “We have found no indication that any information has been misappropriated and will continue our investigation.”

    The spokesman would not clarify which records were secure, and he wouldn’t disclose whether or not the company involved the authorities.

    The potential breach in data privacy comes as stocks from FedEx and its rival UPS have been under pressure after reports surfaced that Amazon was getting into the delivery market in a bigger way. The service, which is known as “Shipping with Amazon,” is launching in Los Angeles and possibly other locations, a person who has knowledge of the program told Reuters.

    Once investors got wind of the news, shares of both FedEx and UPS slid more than 4 percent late last week. Still, both delivery services — and analysts — are downplaying concerns the experiment is a threat to the business of FedEx or UPS in the near future. Cowen and Co Analyst Helane Becker, for example, said Amazon would have to spend an estimated $100 billion to build a network and acquire the equipment to go up against FedEx and UPS.

  • DHL gives India top ranking for growth in the ‘Big Seven’

    DHL gives India top ranking for growth in the ‘Big Seven’

    India’s economy holds the brightest growth prospects of the world’s seven largest economies, according to results from the Global Trade Barometer (GTB) from logistics company DHL.

    GTB analytics assigned India the highest growth indices of the seven countries assessed, due to strong and sustained increases in both air and ocean freight in and out of the country.

    The country’s trade in machinery and high-tech goods continues to underpin its growth, while increased imports of industrial raw materials point to an extended period of trade development for the nation.

    “More than any of the world’s largest economies, India’s major industries have displayed levels of resilience and growth that will buoy business confidence in the short-to-medium term,” said George Lawson, managing director, DHL Global Forwarding India.

    “India’s economy has built up terrific momentum in recent times: Since 2008, its GDP has risen every single year to US$2.44 trillion last year, more than double the levels of a decade ago. As the country continues to invest heavily in infrastructure, we expect it to continue its upward trajectory for the foreseeable future.”

    According to the GTB, businesses in India can expect ocean trade to further improve on already-high levels, largely thanks to demand for commodities and industrial materials from overseas.

    Air freight demand is projected to remain stable at its current highs, sustained by growth in machinery and technology imports. Both India’s air and ocean freight forecasts proved stronger than those of any other country in the GTB — in large part due to every major sector making a positive contribution to the country’s trade.

    Developed jointly by DHL and Accenture, the GTB provides a quarterly outlook on future trade, taking into consideration the import and export data of seven large economies: China, South Korea, Germany, India, Japan, the United Kingdom and the United States. Together, these countries account for 75 per cent of world trade, making their aggregated data an effective bellwether for near-term predictions on global trade. The GTB, which assesses commodities that serve as the basis for further industrial production, predicts that global trade will continue to grow in the next three months, despite slight losses in momentum.

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  • DHL to offer more secure shipment service in Indonesia

    DHL to offer more secure shipment service in Indonesia

    DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, has obtained an Authorized Economic Operator (AEO) certification by Indonesia’s customs authority, The Directorate General of Customs and Excise. The AEO certification will allow DHL Global Forwarding Indonesia to provide secure and quality logistics services while offering cost savings that can help customers become more globally competitive.

    The AEO accreditation is a cornerstone of the World Customs Organization’s (WCO) SAFE Framework of Standards to Secure and Facilitate Global Trade, and to date, fewer than 70 companies in Indonesia have been recognized with the certification. The country’s adoption of the AEO program as part of its ongoing Customs and Excise Reform will give trusted companies like DHL Global Forwarding a number of added benefits, including fewer physical consignment checks and preferential treatment in terms of customs regulations. Under the AEO principle of Mutual Recognition, DHL Global Forwarding will now also benefit from being part of a global supply chain that connects AEO-certified organizations, further decreasing shipment time.

    Thomas Tieber, CEO for ASEAN and South Asia, DHL Global Forwarding, said: “Global trade continues to grow positively, and this raises important security concerns for customs authorities around the world. However, stricter security and safety measures alone risk increasing the complexity of cross-border movement of goods and adding transaction costs to the overall supply chain process, potentially impacting the ability of all participants to remain globally competitive.”

    With the AEO, the Indonesian Directorate General of Customs and Excise has helped to ease processing at ports, reduce logistics cost and promote greater ease of business in Indonesia. The Indonesian Directorate General of Customs and Excise also plan to increase the number of AEO-certified companies in Indonesia so as to amplify end-to-end trade synergies and provide a safe and secure trading environment in the country.

    The program shares the same methodology as ISO in terms of implementation, execution, risk assessment and management engagement. To obtain AEO certification in Indonesia, DHL Global Forwarding set up a dedicated AEO team to ensure the business met or exceeded rigorous logistics and customs-related criteria, and high accounting and security standards, as well as proved financial solvency, among other requirements.

    Vincent Yong, Managing Director, DHL Global Forwarding Indonesia, said, “Achieving AEO status in Indonesia not only confirms our commitment to high safety and supply chain security standards in global trade, but also serves as a strong argument for our customers when choosing a logistics partner. The certification will enable us to offer an even more efficient service and deliver better value for our customers.”

    World Customs Organization (WCO) launched the SAFE program globally post 9-11 incident in New York to encourage customs authorities and certified businesses such as logistics providers, exporters and shippers, to be jointly responsible for safe and secure cross-border transactions and keep world trade flowing swiftly. WCO is an independent intergovernmental body whose mission is to enhance the effectiveness and efficiency of customs administrations. There are 182 WCO members, which together process about 98 per cent of world trade.

  • DHL appoints Skerry Palanga as new Country Manager in Papua New Guinea

    DHL appoints Skerry Palanga as new Country Manager in Papua New Guinea

    DHL Global Forwarding, the leading international provider of air, sea and road freight services, has appointed Skerry Palanga as Country Manager, Papua New Guinea. With the appointment, Palanga will lead and manage the country’s operations and be responsible for driving its business growth.

    Prior to this appointment, Palanga was the National Operations Manager where he was instrumental in the set-up and transportation of telecommunication equipment for the first mobile network in Papua New Guinea. While directing the mammoth project, Palanga managed the entire logistics solution which covered numerous sites across the country. During his 14-year tenure in DHL Global Forwarding, Palanga had also successfully established the operations in Port Moresby and Lae which has remained sustainable today.

    Kelvin Leung, CEO, DHL Global Forwarding, Asia Pacific, said, “A veteran freight forwarding professional, Skerry has built a wealth of experience and first-hand knowledge of day-to-day operations — having risen through the ranks in DHL over the last 14 years.  His appointment to this new role is a valuable addition to DHL, as we continue to expand our footprint in Asia Pacific. With his strong knowledge of the country, I’m confident that Skerry will bring with him the agility and flexibility needed to help us realize this market’s full potential, amid the anticipated growth in freight volumes.”

    Based in Port Moresby, Papua New Guinea, Palanga will report to Tony Boll, CEO, DHL Global Forwarding, South Pacific.

    Tony Boll, CEO, DHL Global Forwarding, South Pacific, said, “We are delighted to welcome Skerry onboard as we further our growth momentum in Papua New Guinea. We have every confidence that Skerry will continue to drive great business outcomes — supported by his extensive industry experience and in-depth knowledge of the local business culture. We look forward to achieving new and greater heights in this market, as we continue to capitalize on rich growth opportunities within the South Pacific region.”

    Skerry Palanga, the newly-appointed Country Manager for Papua New Guinea, DHL Global Forwarding said, “I am excited to lead the charge in nurturing our business in Papua New Guinea — a market that presents tremendous opportunities. I believe that my keen appreciation of the local culture and business practices will be a strong asset in guiding DHL’s growth in the country. Our biggest achievements are ahead of us — and I look forward to delivering the highest standards of excellence to our customers, with the support of a talented and committed team.”

    A citizen of Papua New Guinea, Palanga brings over 16 years of industry experience across various roles within the logistics industry. Since starting with Danzas AEI in 2001, Palanga has accumulated 14 years of experience with DHL. In his various roles at DHL that included Air Freight Export Supervisor and Air Freight Export Manager, Palanga has been involved in different aspects of the business — operations, sales, finance and human resources.

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  • Newcomer Logistics Firm Iruna eLogistics Seeks to Empower E-Commerce

    Newcomer Logistics Firm Iruna eLogistics Seeks to Empower E-Commerce

    Iruna eLogistics, a logistics startup company, plans to open two new fulfillment centers in Surabaya and Medan by the end of this year as part of its rapid expansion to provide back-end logistics services to Indonesia’s small and medium-sized enterprises.

    Indonesia’s small and medium-sized businesses have embraced e-commerce and digital marketing platforms to boost sales in the last two years. However, they often find high warehousing and transportation costs expensive and experience complications in tracking inventory, which in turn hinder growth.

    Iruna, which was founded by logistic veteran Yan Hendry Jauwena last December, tries to address the problem by offering integrated logistics solutions which manage the storage, packaging, handling and delivery of items for small business.

    “We wanted to improve the ecosystem by taking care of the back-end issues involved in online commerce. That way the small and medium-sized businesses can focus only on the production and marketing of their products,” Maria Bebasari, Iruna’s vice president for marketing and communication, said on Tuesday.

    Currently, Iruna handles delivery of more than 1,000 types of items a day, ranging from tiny soaps to bulky furniture from its 5,000-square-meter space in Sunter, North Jakarta. The facility is equipped with freezers and coolers to handle food and beverage delivery as well as secured storage for items worth more than Rp 5 million ($374), Maria said.

    Still, the company is not yet able to transport gold — which requires a separate license — or living plants or animals, she said.

    Iruna plans to open similar facilities in Surabaya next month and in Medan by the end of the year, occupying an area of 2,000 to 3,000 square meters each, Maria said.

    Maria said e-commerce consumers are concentrated in big cities despite vendors being spread out across the archipelago, making it costly for individual item delivery.

    “It’s more economical for both the producers and consumers if the delivery is done from our warehouse,” Maria said, adding that their storage and handling facilities differentiate the company from existing logistics firms like state-owned Pos Indonesia, Tiki or JNE.

    Maria said that Iruna targets to deliver 1 million different types of items and add six more fulfillment centers across the archipelago over the next three years, fully confident in the country’s e-commerce prospects.

    Indonesia e-commerce market is projected to reach $130 billion in sales by 2020, according to an estimate from the Ministry of Communication and Information Technology.

  • FedEx launches ‘crucial’ e-commerce service in Asia Pacific

    FedEx launches ‘crucial’ e-commerce service in Asia Pacific

    FedEx customers in the Asia Pacific market have a new e-commerce delivery option. FedEx Express — subsidiary of Memphis-based logistics and delivery powerhouse FedEx Corp. — announced Jan. 23 its FedEx Delivery Manager service would now be offered in Australia, China, Japan, Malaysia, New Zealand, Singapore, South Korea and Taiwan (Asia Pacific).

    Customers using the delivery manager service can request specific delivery times or have packages delivered to a different address as part of the free service. FedEx sends SMS or email notifications when it picks up a package; recipients can then change any delivery instructions as needed. This is also intended to reduce the amount of deliveries FedEx makes to people who are not home.

    “The last mile of delivery capability is crucial to e-commerce as consumers today view convenience as a necessity and not a luxury,” said Karen Reddington, president of FedEx Express Asia Pacific, in a release.

    FedEx recently confirmed the importance of an “efficient and flexible shipping process” to SMEs [small-to-medium enterprise] via a FedEx-commissioned research study. According to the company, study results showed that 79 percent of Asia Pacific SMEs generate revenue through e-commerce; 32 percent have had e-commerce growth in the past 12 months; and, of the businesses that reported e-commerce growth, 46 percent said they needed more flexible shipping options.

    The study, “Global Trade in the Digital Economy: Opportunities for Small Businesses” was commissioned by Harris Interactive on behalf of FedEx in September 2016.

    With this latest addition, FedEx Delivery Manager is now offered in 41 markets across the world, including Asia Pacific, Europe, North America, Latin America and the Middle East.

    “The flexible delivery options provided by FedEx Delivery Manager will give end-consumers the peace of mind and enhance their overall online shopping experience,” Reddington said. “This is crucial to businesses, especially SMEs, as this will help them meet customers’ expectations and stay ahead of the competition.”

    FedEx Corp. reported $60.3 billion in annual revenue for fiscal 2017. In total, FedEx has more than 400,000 employees across the world. FedEx reported $16.3 billion in revenue for its second quarter 2018 results.

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  • Vincent Yong Takes The Helm at DHL Global Forwarding Indonesia

    Vincent Yong Takes The Helm at DHL Global Forwarding Indonesia

    Southeast Asia logistics veteran Vincent Yong is the new Managing Director of Indonesia for DHL Global Forwarding. In a statement issued yesterday (24 July), DHL said that Yong was “no stranger to complicated situations”.

    The company explained: “As Chief Operating Officer of DHL Global Forwarding Thailand, Yong steered his team through political upheaval in 2006, catastrophic floods in 2011 and numerous changes to the country’s transport infrastructure – significantly expanding the business and consolidating operations in a 100,000-sqft Multimodal Hub at Suvarnabhumi Airport in the process.”

    Yong added: “My time in Thailand saw us go from one ‘adventure’ to another – which helped me develop a practical understanding of challenges; from air and ocean logistics operations to crisis management, security, and overall macroeconomic current affairs – and will prove particularly useful in managing our dynamic business operations in Indonesia.

    “In addition, my most recent role as Regional Head of Technology leads to my strong belief that technology will be a powerful proponent in propelling Indonesia to the next level.”

    “As Indonesia continues to invest in technology and infrastructure — like its Mass Rapid Transit network and expanded airport terminals — we expect the costs of trade and doing business to further ease. Moreover, as the world’s fourth most populous country, Indonesia still holds vast potential for growth in domestic consumption despite slowing growth in imports and exports alike. I’m looking forward to strengthening DHL’s competitive advantage in this fast-evolving market.”

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  • Indonesia Logistics Market is Expected to Reach USD 240 Billion by 2021

    Indonesia Logistics Market is Expected to Reach USD 240 Billion by 2021

    3PL market in Indonesia is expected to increase at a five year CAGR of 14.0% in the near future. Jakarta contributed highest revenue share of 38.0% in Indonesia warehousing market in 2016 owing to the industrial parks situated in the largest city Jakarta.

    Indonesia Logistics Market is currently in the growth stage with presence of various organized and unorganized players consisting of a combination of shipping and international freight forwarders, courier providers which are mainly engaged in land transportation and total logistics services providers that operate a multimodal transport model. Players are taking up and diversifying into 3PL segment to enhance their market share. Presently, there are more than 155 logistics and warehouse service providers in Indonesia.

    The freight forwarding market size has increased with the boost in air freight and sea freight, the development of transportation infrastructure and increase in number of freight forwarders, increasing industrial activities, growing FMCG market and rising e-commerce industry. Road freight has the highest share owing to the high number of deliveries that take place through road network. Air freight had the second largest share in the country freight forwarding market. Asian Countries flow corridor is the largest contributor in terms of revenue in the freight forwarding market owing to free trade agreement. The leading players in the industry are DHL, CEVA Logistics, Yusen Logistics, Agility Logistics and others. The freight forwarding market is forecasted to dominate the Indonesia logistics market in future

    Air express logistics has dominated the Indonesia express logistics with 61.0% revenue market share during 2016 owing to major international shipments falling in this category. B2B segment has dominated the express logistics market in Indonesia during 2016. The major players of Express logistic in Indonesia include DHL, FEDEX, First Logistics and JNE Express. High growth rate can be advocated from the growth expected in the e-commerce industry, rise in the demand of perishable goods and the increased use of express delivery by people in case of personal and corporate documents and last mile delivery.

    According to the report by Ken Research, a noteworthy CAGR of 7.9% in revenue in Indonesia Logistics Market is expected in next 5 years till 2021. Freight Forwarding is expected to be the fastest growing segment in future with an expected CAGR of 9.2% from 2016-2021.

  • Hubbed Signs Deal with DHL eCommerce to Launch New International Delivery Service

    Hubbed Signs Deal with DHL eCommerce to Launch New International Delivery Service

    HUBBED has recently partnered with DHL eCommerce to launch the latest and convenient international delivery service.

    HUBBED is currently offering competitive rates to sellers who are using eBay’s eCommerce platform— and will help them save at least 20 percent on HUBBED’s international standard rates.

    “We’ve partnered with HUBBED to offer you a competitive international shipping service with DHL eCommerce.” DHL Spokesperson

    This offer is only available to eBay sellers and will give them access to HUBBED locations for parcel drop-offs, HUBBED’s international standard rates, quick access to their eBayaccounts, and parcel tracking with email notification on their delivery.

    All rates include parcel tracking, PO Box delivery accepted, insurance coverage of up to $50, and email notifications. Special rates are only valid until 15 February 2018.

    eBay sellers need to link their store to HUBBED and start shipping orders in bulk in a few minutes.

    All import orders from their eBay account go directly into their HUBBED Parcels account. Sellers will then have to package their items, complete the transactions, and then generate their own consignment label.

    Once the packages are all set, sellers will then have to drop off their parcel at any of the 1000+ HUBBED locations near their area. They can track the parcel directly from their HUBBED account and will also receive email notifications for the items.

    Never miss any delivery with HUBBED

    HUBBED offers a much better way for retailers, customers, and carriers to deliver their parcels. They also provide hassle-free returns process at any of their locations.

    They also have the innovative technology solutions that can help you track and deliver your order easily. The company is currently working with several logistics company such as TOLL, BP, Couriers Please, Singapore Post, UPS, and many others.

    What do you feel about HUBBED’s partnership with DHL e-commerce? Share your thoughts down below.

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  • China’s Alibaba on road to deliver $100 million to XpressBees

    China’s Alibaba on road to deliver $100 million to XpressBees

    China’s online commerce giant Alibaba Group Holdings is in advanced talks to pick up a significant minority stake in logistics company XpressBees by making an investment of up to $100 million, said three persons with knowledge of the matter.

    The transaction, which is in the final stages of negotiations, will be Alibaba’s sixth investment in the Indian market as it builds a string of assets to take on homegrown market leader Flipkart and global rival Amazon.

    “The deal is likely to close in the next two-three weeks,” said one of the persons mentioned above. The exact stake Alibaba is picking up in XpressBees could not be determined. Alibaba and XpressBees didn’t respond to queries.

    XpressBees is the logistics business spun out of baby and maternity products retailer FirstCry, known for its acquisition of Mahindra’s Babyoye in 2016. The company competes with other online retail-focused logistics services providers like Delhivery and Ecom Express.

    Talks between XpressBees and Alibaba have been on for about 18 months.

    ET had reported in June 2016 that Alibaba was looking to buy, or invest in, an Indian logistics company specialising in deliveries for online retailers, and toward this end had held talks with Delhivery and XpressBees Logistics.

    If the XpressBees investment goes through, it will help Alibaba build what founder Jack Ma calls the “iron triangle” of businesses in ecommerce (Paytm Mall, Bigbasket), payments (Paytm) and logistics, which can feed off each other.

    In China, the Alibaba Group has online retail businesses called Tmall (B2C, focusing on brands) and Taobao (C2C) and a payments business under affiliate Ant Financial, popularly known as Alipay.

    In September, it increased its stake to a majority in one of China’s largest techenabled logistics companies, Cainiao, which is valued at close to $20 billion. At the time, Alibaba had said it plans to invest over $15 billion in the next five years to develop its global logistics network.

    “Alibaba wants to make Xpress-Bees the Cainiao of India, and over time logistics operations for all companies like Paytm Mall and Bigbasket may get consolidated under it giving it a larger captive customer base,” said the second person mentioned above.

    The impending deals in Bigbasket and XpressBees will take total investments in India by Alibaba along with its payments affiliate Ant Financial to about Rs 11,000 crore, or $1.7 billion, out of which over two-thirds is invested in Paytm. In addition, Ant Financial is also said to be in talks to invest up to $200 million in restaurant discovery and food delivery platform Zomato.

    Shifitng Kaurndia as the portfolio in India grows, Alibaba Group is also likely to move one of its key executives from Hong Kong, senior director Kshitij Karundia, to the country to work more closely with the businesses and look for more investments, said the third person familiar with matter.

    FirstCry entered logistics in 2012 when it decided to start express deliveries of its products and began third-party logistics (3PL) at the beginning of 2015. The company was spun off as Busybees in September 2015 and has ramped up orders significantly since then.

    The business has been built by FirstCry founders Supam Maheshwari and Amitava Saha. After the demerger, Saha has been leading the logistics business as CEO while Maheshwari has been heading First-Cry. XpressBees investors include SAIF Partners, IDG Ventures India, NEA, Vertex Ventures and Valiant Capital, some of which may sell a part of their stake in this deal.

    The company saw revenue go up by 121% in FY17 to Rs 185.42 crore while losses grew 61% to Rs 57.71crore, according to filings with Ministry of Corporate Affairs (MCA).

    Owned by Busybees Logistics Solutions, XpressBees has built the business on about Rs120 crore of capital till now, which is in contrast with competitors Delhivery which has raised Rs 1,600 crore, and Ecom Express, which has racked up around Rs1,000 crore in capital.

    With capital coming in from Alibaba, experts said an XpressBees deal could trigger consolidation. While industry sources pegged Delhivery as the market leader with around 300,000 shipments a day, XpressBees is currently logging 170,000-200,000 while Ecom Express has 120,000-130,000. Large players like Flipkart and Amazon India have also built their own logistics operations, which handle most of their shipments.

    The market for logistics-technology businesses, which include delivery startups, truck aggregators and warehousing firms, is expected to surge to $9.6 billion by 2020 from $1.4 billion in 2015, according to a report by investment bank Avendus Capital. Online retail logistics startups will dominate this space with a market size of $6.6 billion by then.

  • Yamato teams up with JD.com to send goods across China

    Yamato teams up with JD.com to send goods across China

    Yamato Holdings will partner with Chinese e-commerce giant JD.com to ship products from Japanese retailers throughout China starting in 2018, likely boosting Japanese online sales there.

    JD.com is China’s second-largest internet retailer, after Alibaba Group Holding, and operates a nationwide delivery network.

    Yamato will handle international shipping from Japan to China and use JD.com’s network for home delivery under an agreement concluded Monday. Responsibility for clearing customs will be decided later.

    The alliance will enable Chinese consumers buying items on Japanese websites to have purchases delivered to where they live. With cosmetics and food products from Japan popular in China, sales of Japanese companies are growing as they offer goods on internet marketplaces there. Yamato’s service will offer a way into China for small and midsize Japanese business that have yet to enter the country’s online retail market.

    JD.com will receive shipping service support from Yamato as well. The parcel courier is already consulting JD.com on its cold-chain network and other delivery methods to maintain product quality in transit. This will help JD.com better handle fresh Japanese foods and other perishables, expanding its online retail business.

    China-bound online sales from Japan grew some 30% in 2016 to 1.03 trillion yen ($9.08 billion), according to the Ministry of Economy, Trade and Industry. The market is estimated to nearly double to 1.9 trillion yen in 2020.

    New strategy

    The profitability of home delivery services in Japan has been squeezed amid a personnel shortage that has pushed up labor costs. Yamato sees international delivery, which carries high rates, as a growth field.

    Yamato had been able to offer home deliveries from Japan to only those areas where it has a transport network, such as Shanghai and Hong Kong in China. But it is abandoning this model and partnering with other companies to accelerate expansion abroad. Yamato launched a home delivery service in Thailand with Siam Cement in January.

    But the competition is intense. Japan Post already has Japan-China transport infrastructure and holds a large share of such shipments. It partnered with China’s STO Express to launch a low-cost delivery service in October. Nippon Express is also cooperating with Alibaba in China-bound shipping, handling international transport of goods and customs.

  • DHL Express named Asia Pacific’s best employer for fourth consecutive year

    DHL Express named Asia Pacific’s best employer for fourth consecutive year

    DHL Express, the world’s leading international express services provider, has been named 2018 Top Employer for Asia Pacific as well as eight countries in the region: Australia, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, and Thailand.

    The award was conferred by Top Employers Institute, a global organization recognizing excellence in employee conditions, making this the fourth consecutive year that DHL Express has received the award. This further establishes the company as a regional leader in employment practices and talent development, with a workplace culture built on respect, recognition and equal opportunities.

    In 2017 alone, DHL Express received a total of 49 awards for its workplace and corporate culture in Asia Pacific, up from 39 awards in 2016 and 34 awards in 2015. This year’s string of accolades are the latest additions to the 96 other awards that DHL Express Asia Pacific has received since 2014, many with strict judging criteria based on employee feedback.

    “The DHL culture is built on the two R’s — respect and results. When we value our employees, and provide them with opportunities to achieve, we’re able to deliver the world-class results that our customers rely on to grow their businesses,” said Ken Lee, CEO, DHL Express Asia Pacific. “It is an honor to be acknowledged as a leading employer and an excellent workplace in Asia Pacific once again, and a testament to the hard work and effort that all our employees invest in really making DHL Express a byword for excellence.”

     The Top Employer award has consistently recognized DHL Express’ sustained investment in talent growth, including its Certified International Specialist (CIS) and Certified International Manager (CIM) programs that have trained over 43,000 employees in Asia Pacific. Nearly 75% of executive positions in the region end up being filled by internal candidates thanks to the company’s talent development initiatives, and women hold 1 in 3 management roles in DHL Express.

    “Diversity in leadership and the workplace help us better understand the full range of our customers’ needs and stories — resulting in more effective service for their businesses,” said A. Mateen, Senior Vice President, Human Resources, DHL Express Asia Pacific. “Thanks to a strong Diversity Management framework in place, coupled with comprehensive feedback from our annual Employee Opinion Survey, we’ve established a workplace culture where everyone has not only a voice, but also the opportunity to grow to their full potential.”

    This year, DHL Express was also named Best Employer 2017 for Asia Pacific and nine other countries region-wide, as well as “Best Employer for Women in the Workplace” in South Korea and Taiwan, by human capital firm Aon Hewitt. The Great Place to Work® Institute also recognized DHL Express as one of the “Best Multinational Workplaces in Asia” for five countries as well as the broader Asia Pacific region.

    “The success of any logistics operation depends on the skill, adaptability, and resilience of its people, translated across numerous cultures and geographies,” added Ken Lee. “At DHL Express, we’re committed to creating an environment where all employees can thrive and grow. We’re extremely proud to have nearly doubled the number of awards for our culture and workplace this year compared to 2016: each award encourages us to keep working towards a more inclusive, effective, and empathetic culture in every market where we do business.”

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  • DHL and Air Hong Kong sign 15-year block-space agreement

    DHL and Air Hong Kong sign 15-year block-space agreement

    DHL Express extended its Air Hong Kong (AHK) agreement, which grants DHL Express access to AHK’s overnight air services. The new agreement extends to 2033.

    As part of the deal, DHL Express and AHK formalized a reorganization announced in July, under which majority owner Cathay Pacific will buy out DHL Group’s 40 percent stake in AHK. Under the terms of the new agreement, DHL will also purchase AHK’s eight A300-600 freighters, which will be leased back to AHK. The deal goes into effect on Jan. 1, 2019.

    Once the deal takes effect, DHL will initially have the same access to AHK’s capacity granted by its current agreement, but over time will have more access to flexible aircraft deployment and route selection to support DHL’s growth in the Asia-Pacific region.

    “With Hong Kong’s merchandise exports between January and September 2017 growing by 8.5 percent compared to last year, we’re keenly aware of the upward momentum that the region’s trade lanes are facing,” said Ken Lee, DHL Express Asia Pacific CEO. He added that the deal offers the “greater flexibility” DHL needs to handle any unpredictable changes or demand increases in the region.

    In addition to the AHK deal, DHL Express recently announced an expansion of its Central Asia Hub at the Hong Kong International Airport. The expansion adds 8,000 square meters and improvements including automated x-ray inspection machines and material handling systems. The expansion is scheduled for Q1 2022 completion.