DHL Express increases capacity by 30% in Asia
DHL Express has expanded its airfreight capacity by 30 percent to better serve the Asian customers, in anticipation of the upcoming e-commerce peak season.
DHL Express Asia Pacific CEO Ken Lee said the Asia Pacific has remained resilient despite the economic impact amid the pandemic. “We are seeing increased activity in cross-border trade and e-commerce within the region due to improved logistics, enhanced connectedness as well as reduced trade barriers.”
Its newly converted Boeing aircraft provides a 30 percent increase in the gross payload for customers in Bangkok, Hanoi, and Hong Kong. The expanded airfreight capacity supports growth in cross-border trade and e-commerce sales within the Asia Pacific.
The new B737-800 aircraft connecting Bangkok, Hong Kong, and Hanoi joins three other aircraft in the fleet that concurrently and collectively serve Hong Kong, Phnom Penh, Singapore, and Jakarta. It is also part of DHL Express’ commitment to bolstering its Asia Pacific network with the investment of close to EUR 60 million ($70.8 million) by introducing new aircraft and direct routes.
“We can provide businesses in Thailand, Vietnam, and Hong Kong with better access to other markets via our extensive global network and boost their economies in the process,” Lee said, adding that he expects orders and sales to rise significantly.
K-Mile Asia, a partner of DHL operates the newly converted B737-800 freighter, which provides a total gross payload of close to 140 tons weekly as it travels six times a week from Hanoi to Hong Kong and Bangkok before making its return to Hanoi.
It was a 30 percent increase in capacity carried previously by the Boeing B737-400SF freighter, which enables better preparation and response to the anticipated growth in shipment volumes in the coming months.
It has expanded the capacity and increased flight frequency from five to six times per week to enable businesses and consumers from the three markets to capitalize on the growth in trade opportunities within Asia. Consumers will benefit from faster deliveries and shorter transit times.
The economic growth in the Asia Pacific has shown signs of rebound and is set to continue, driven in part by the progressive rollout of COVID-19 vaccines across the region. Exports are forecasted to grow at a rapid pace, due to stronger supply chain networks. The ASEAN policy initiatives, such as the Regional Comprehensive Economic Partnership (RCEP) promote regional economic integration.
Asia Pacific’s e-commerce sales were seen to reach $2 trillion by 2025, as mobile connectivity and a digital-savvy demographic propel digital adoption. Purchases from abroad have become increasingly ubiquitous. Almost 75 percent of online shoppers in Hong Kong and 50 percent in Thailand have made purchases on overseas platforms. Vietnam has also seen an acceleration in cross-border e-commerce activities.
“As consumers get used to shopping online, businesses are equally leaping digital platforms to conduct their business-to-business (B2B) transactions, many of which are helmed by digital natives who have grown up in the age of the internet,” said Sean Wall, executive vice president of Network Operations and Aviation at DHL Express Asia Pacific.