n evolution in the transport sector is being driven by trends such as the rapid growth of e-commerce, the continued urbanization of markets, and technologies such as big data analytics and digitalization
Advanced technologies and service options are changing the way shippers and 3PLs manage their global transport flows
Service expectations, new markets, new ground transportation solutions have all increased as a result
DHL launched its latest research report on ground transportation logistics. The report reveals that the fast-paced evolution underway in the sector is changing the way that shippers think when purchasing a transportation solution. The global survey of transport buyers and operations professionals found that 83% of businesses are willing to pay more for better and value-added services as long as they provide a measureable return on their investment.
"The Logistics Transport Evolution: The Road ahead" is a report by DHL Supply Chain, using data from research by Lieberman Research Worldwide, LLC (LRW) that was commissioned by DHL to identify the factors that are impacting ground transportation logistics and how industry is adapting to the new frontier of solutions available. The report found that across sectors and regions, companies are increasingly viewing ground transportation as being more than a tactical commodity, with 71% now considering it to be a strategic component of their businesses. Companies agree there is a direct correlation between ground transportation and business performance with three quarters (75%) believing investing time and resources in ground transportation will directly help their company sales.
Javier Bilbao, Global Transport Lead & CEO Latin America, DHL Supply Chain said: "Transport is undoubtedly a critical aspect of the global business environment, and these findings indicate that companies across sectors and markets are now recognizing its strategic value. We undertook this study to gain an insight into exactly what companies expect from their transportation service providers, both today and tomorrow. Our research has shown us that customers are increasingly looking for complete solutions with a global reach as they have the capability to solve a wide range of transportation issues and requirements."
Global shifts in the business environment were identified as disrupting the ground transportation landscape. In particular, the exponential growth of e-commerce and its implications on service was identified by 65% of companies as having a significant impact on their supply chain in the next 1-2 years.
Bilbao added: "Echoing the findings of our digitalization research, technology will be central to navigating this new era for ground transportation. The capability of AI and data analytics to manage the order profile and shipping patterns of customers' increasingly complex and demanding operating models while optimizing cost and service, means that they are now viewed as essential services, rather than added benefits."
Although these changing dynamics are being witnessed across regions, variations can also be identified depending on the maturity of the market and the demands placed on shippers from their consumer base. In Latin America, the priority consideration in selecting a ground transportation provider is on time delivery while in Europe, where the market is more mature, optimization of networks is the key focus for shippers.
Broader societal factors were also highlighted as presenting associated challenges, with 61% of companies referencing the increase in urbanization as a factor that will significantly impact their future business. Technology and its ability to help manage this complex environment is increasingly seen as a standard requirement of 3PLs: more than two thirds (67%) of companies believe that big data analytics and artificial intelligence (AI) are services that are essential for 3PLs to offer their shipper customers.
DHL Global Forwarding grows its rail freight capacity in the Belt and Road network
New weekly LCL service between Duisburg and Chengdu to meet increasing demand
Lead time of up to 29 days for LCL shipments door-to-door from Europe to China
Bonn - The demand for rail freight capacity on the "New Silk Road" is continuously increasing, and this land connection is not a one-way street. Rail transport in the reverse direction, from Europe to Asia, is also rapidly growing. Shippers are more frequently exploring the train connections from the West to the East as a reasonable transport alternative. Within this context, DHL Global Forwarding, the air, ocean and rail freight specialist of Deutsche Post DHL Group, has introduced a new less-than-container load (LCL) service from Duisburg, Germany, to Chengdu, China.
The new DHL Railconnect LCL service addresses customers who are mainly shipping general cargo and want to leverage the reliable and fast transport service via rail. With a lead time of up to 29 days door-to-door between the main economic areas, DHL Global Forwarding connects Europe and China faster than by sea and at more reasonable costs than via air freight.
"With the extension of our service by a weekly DHL LCL rail service ex Europe, we are offering our customers a transport solution for LCL shipments from all over Europe to China. This allows also exporters of smaller volumes a reliable and proper planning of their supply chains. What has long been standard for air, sea and road transport is now also available for rail. We are filling an important gap and continue to expand our product portfolio to suit all shipment sizes with planned departure schedules for West- & Eastbound directions," states Thomas Kowitzki, Head of China Rail, Multimodal Europe, DHL Global Forwarding.
Mostly shippers from the Automotive, Manufacturing & Engineering and Chemical sectors are leveraging the capabilities provided by the new Silk Road to ship everything from spare parts, components, and raw materials up to finished goods. However, with the increasing use of the rail services the demand for less-than-container load (LCL) solutions has also increased. This is why DHL Global Forwarding is now offering a fixed scheduled LCL service to China using DHL logistics platforms. The new DHL LCL service enables reliable supply chain planning while helping to meet ad hoc orders or production needs.
Post - eCommerce - Parcel (PeP) to be separated into German and international divisions under dedicated Board of Management leadership
Post - eCommerce - Parcel (PeP) will be renamed as Post & Paket Deutschland, focusing on post and parcel business in Germany
Ken Allen takes over responsibility as CEO and Board Member for new DHL eCommerce Solutions division
John Pearson appointed as new Board Member and CEO for DHL Express
In order to allow for a dedicated focus on the Post and Parcel business in Germany and to leverage the tremendous growth opportunities in the e-commerce sector, the Group has decided to refocus the Post - eCommerce - Parcel (PeP) division on the post and parcel business in Germany. This business will be renamed Post & Paket Deutschland and will remain under the interim leadership of Group CEO Frank Appel. The international parcel and e-commerce businesses - previously DHL Parcel Europe and DHL eCommerce - will be established as a standalone division, DHL eCommerce Solutions, under the leadership of Corporate Board Member Ken Allen.
Having one operating division of the Group fully dedicated to the German post and parcel business will ensure even more stringent execution of the previously announced PeP turnaround plan. This plan includes improved yield management, indirect cost reduction and productivity improvement measures. At the same time, by creating the DHL eCommerce Solutions division, the Group will be better positioned to leverage opportunities within the booming e-commerce logistics sector in Europe and around the world.
The Supervisory Board of Deutsche Post AG today named Ken Allen (63) as the Board member for DHL eCommerce Solutions and extended his contract to the Corporate Board of Management until 2022. Ken Allen's new mandate will include the Parcel Europe and eCommerce businesses which are currently within the existing PeP division. He will keep the responsibility for Customer Solutions & Innovation (CSI), and will lead the further development of the overall e-commerce strategy for the Group.
"Ken Allen has successfully shaped the Express strategy and has led the division on an unparalleled growth trajectory by unlocking its revenue and profit potential. With his relentless focus on the core principles of customer centricity, employee engagement and profitable growth, Ken established truly world-class processes within the Express division, making it the most profitable division of Deutsche Post DHL Group," said Chairman of the Supervisory Board of Deutsche Post DHL Group, Dr. Nikolaus von Bomhard. "I have no doubt that the DHL eCommerce Solutions division will greatly benefit from Ken's ability to deliver exceptional performance and value for DHL customers, using his significant experience in building networks and leading people with an inspirational style."
John Pearson (55) will take over the Board mandate for DHL Express. He joined DHL Express in 1986, and served the company as CEO in Asia Pacific, EEMEA and Europe, as well as leading the global sales, marketing and customer service functions of the DHL Express division as Global Commercial Head. "We are pleased to have John Pearson join our Corporate Board. He has a proven track record, along with a deep understanding of the Express business. Not only does he have extensive operational and business experience of the Express division but John has been a key member of the leadership team running the Express division along with Ken. I'm confident John's experience will prove immediately valuable to the Board, and that he will take DHL Express to new and greater heights in the years to come," said Deutsche Post DHL Group CEO Frank Appel.
TRAILAR is a sustainable, efficient and cost-effective solution which makes a significant contribution to reducing emissions from road transport.
DHL's TRAILAR solution cuts vehicle fuel consumption by five percent and reduces carbon emissions and vehicle maintenance costs
Product launch for rigid vehicles solution at IAA Commercial Vehicles 2018, Hanover
Deutsche Post DHL Group, the worldwide leader in logistics and express delivery, launches TRAILAR, a new fuel conservation technology for road transport based on light-weight and durable photovoltaic modules. The TRAILAR solution for rigid vehicles will be introduced and available to third party truck owners and fleet operators at hall 13, booth G34 of the IAA Commercial Vehicles Show 2018 in Hanover from September 19 to 27.
TRAILAR uses advanced solar technology by applying thin film, flexible solar matting to the roofs of rigid vehicles, which are connected to the vehicle battery or additional on-board batteries. Harvested solar energy is used to power tail lifts and all ancillary equipment such as air conditioning.
This reduces carbon emissions and lowers fuel consumption by five percent, whilst at the same time increasing engine efficiency and longevity. It makes TRAILAR a greener, cost-efficient, urban-friendly delivery solution.
"Our TRAILAR solution is a key contributor to our GoGreen program and takes us a big step forward towards our goal of becoming the zero-emissions logistics leader by 2050," explains Thomas Ogilvie, Deutsche Post DHL Group board member for Human Resources and Corporate Incubations. "However, while we are improving our environmental footprint, we also want to increase our corporate success. TRAILAR is another great proof point for the fact that cost and emission reductions are not mutually exclusive, but can complement each other."
"TRAILAR is a sustainable, efficient and cost-effective solution which makes a significant contribution to reducing emissions from road transport," affirm Aaron Thomas and Denny Hulme, co-founders of TRAILAR. "We have developed a solution which implements the latest solar technology onto new and existing vehicles, so that our customers can operate more cleanly and efficiently. It helps the road transport industry adjust to a future with higher fuel prices and stricter emissions regulations."
The technology was co-developed by Deutsche Post DHL Group and Don-Bur, the leading manufacturer of commercial vehicle trailers in the UK. After successful trials with DHL Supply Chain's fleet in the UK, TRAILAR will be running further tests with DHL's SmarTrucking initiative in India, with a view to adding it to its future fleet of vehicles. A global rollout within Deutsche Post DHL Group and to external fleet operators has begun and will help turn transport solutions green in the coming years.
Transport of heavy-duty freight from Germany to Saudi Arabia
Unique logistics solution for mammoth project includes transport with Antonov AN225 airplane
DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, is undertaking the transport of four enormous waste heat boilers from Germany to Saudi Arabia. The multimodal movement is being handled by DHL Industrial Projects, a unit within DHL Global Forwarding, specializing in safe and reliable transport of over-sized and heavy-lift cargo as well as complex end-to-end project forwarding. For the spectacular transportation of the four 140-ton boilers measuring 3.70 meters in height, 4.10 meters in width and 19 meters in length, the world's largest cargo aircraft Antonov AN225 is being deployed. A waste heat boiler is about as heavy as 24 full-grown African elephants.
"Logistics, especially within the break-bulk segment, is all about local knowledge, mainly with regards to specificities of different ports or with reference to infrastructure, equipment, roads and regulation," explains Nikola Hagleitner, CEO DHL Industrial Projects. "When it comes to break-bulk logistics, our customers rely on our dedicated teams and their extensive expertise in some 60 offices across 45 countries. With this exciting transport we are again reaffirming our role as facilitator of global trade, no matter how challenging the task."
The transit of the four super-sized waste heat boilers starts at the manufacturer's plant in Berlin. From there, they are transported to the airport of Leipzig via the river Elbe, reloaded at the port of Aken and via road. From Leipzig, the heavy lift is then shipped to Saudi Arabia. On their entire journey, the waste heat boilers are moved with the help of a 1,000-ton-mobile crane, a barge and a heavy goods transporter with 20 axles and a total weight of around 275 tons, as well as the unique Antonov AN225 airplane, the largest cargo plane in the world.
"Transporting freight of this enormous scale requires well-orchestrated resources of workforce, expertise and know-how," adds Peer-Wulf Herrmann, Head of DHL Industrial Projects Germany. "We offer our clients safe, compliant and reliable management during the complete process of planning, organization and coordination of the transport. Even though unusual and special transports like this are our daily business, we are always happy to support projects of this nature with our capabilities and making the impossible possible."
The heavy-duty freight is divided into four transports with an interval of roughly two to four weeks, each taking about seven days. The first three waste heat boilers have already arrived at their destination in Jubail at the Persian Gulf. The project is scheduled to be completed by the beginning of August.
Gradual replacement of older aircraft by most fuel-efficient and technically reliable freighter type airplanes
Options for delivery of additional seven planes to support cross-border e-commerce business as a profitable growth driver for DHL Express
Continuous investments will allow DHL to meet increasing global express demand and serve even more markets with non-stop flights
At the Farnborough International Airshow, DHL Express announced an order for 14 Boeing 777 Freighters, which also includes options and purchase rights for 7 additional aircraft. The delivery of the first four planes is expected to be completed in 2019.
"The acquisition of the 14 Boeing airplanes reflects a gradual replacement of our older intercontinental fleet. As the most fuel-efficient, most reliable freighter type with the best long-haul range, these aircraft will contribute to our emissions reduction targets and allow us to serve even more markets with non-stop flights. DHL was an early adopter of this type of aircraft for the logistics industry and took delivery of the 3rd B777F produced by Boeing in 2009. With extensive experience operating this freighter type, it has proven to be superior in all aspects of operation making it a logical choice," explains Ken Allen, CEO, DHL Express.
Overall, these 14 intercontinental plane replacements are capacity neutral, but operational wise with significant cost, efficiency and reliability benefits. And, while DHL Express in the past has chiefly been leasing aircraft to operate its global network on the routes, the purchase of fully owned freighter aircraft will improve the cost position of the DHL Express division going forward. For 2018, pre-payments have already been included in the group Capex guidance.
Expanding cross-border e-commerce sales will grow to $4.48 trillion by 2021, which means a growth of 19.2 per cent per year. DHL's investment in the 777 Freighters is a direct answer to the growing demand for global express capacity. Being the largest twin-engine cargo airplanes in the world, Boeing's 777 Freighters are capable of flying 4,900 nautical miles (9,070 kilometers) with a cargo load of 102 tons.
These state-of-the-art aircraft will reduce CO2 emissions by 18 per cent versus the aircraft being replaced. This will help us to contribute to greater sustainability in line with our climate protection target which is to reduce all logistics-related emissions to zero by the year 2050.
DHL Express operates over 260 dedicated aircraft with 17 partner airlines on over 600 daily flights across 220 countries.