DHL is deepening its penetration of the Chinese logistics market with the launch of a domestic airfreight service to complement its existing international air freight services. It already offers
domestic express through DHL-Sinotrans, and is thus the first international logistics operator withboth domestic express and domestic air freight in the People’s Republic.DHL announced today that its air and ocean freight unit DHL Global Forwarding is the firstinternational forwarder to obtain the CATA (China Air Transport Association) domestic airfreightlicense, allowing it to operate within 17 Chinese cities. To date, only Chinese state-owned andlocal companies have been permitted to provide domestic air freight transportation.
DHL Global Forwarding will partner with major Chinese domestic carriers such as Air ChinaCargo, China Cargo Airlines, China Southern and Shanghai Airlines to provide air freight transportbetween the 17 licensed cities. These are Shanghai, Beijing, Dalian, Shenyang, Qingdao, Tianjin,Chengdu, Xiamen, Wu Lu Mu Qi, Nanjing, Ningbo, Xi’an, Kunming, Hangzhou, Guangzhou, Shenzhen andWuhan. A total of 30 CATA licensed branches/warehouses, covering 70 cities, are scheduled fordevelopment by DHL in the next five years.
“China has become one of the most significant logistics markets worldwide, with an abundanceof open regulations and huge growth potential. We are confident that the license to operate andgain entry into the domestic airfreight market will provide fresh opportunities and improvedmanagement of heavy airfreight from door to door for our customers,” said Peter Landsiedel, CEO –Asia Pacific, DHL Global Forwarding.
“The launch of the DHL Global Forwarding Domestic Airfreight service is a strategic directionfor us to expand westwards into second and third tier cities in China, allowing DHL to work moreclosely with our customers, who are developing their production base in the hinterland.”
According to the latest Boeing World Air Cargo Forecast, the Chinese domestic air freightmarket has grown at over 20% every year since 1990, and is expected to double its current size andreach ca. € 2.6 billion in 2010. China’s domestic air cargo market has become the second largest inthe world with an annual growth rate forecast of 10.8% over the next 2 decades.
DHL said that the new Chinese domestic air freight service offered premium service quality,competitive pricing and ensured block space allocation especially during peak seasons. Key customerindustries for the services include lifestyle, electronic equipment and components,audio/video/telecom, automotive components and life sciences.
“DHL has a long term commitment to China. Our state-of-the-art technology, customer focusedservices, continuous investment in technology, and in-depth understanding of China provide us withcompetitive advantages. DHL will continue to strengthen our extensive networks and infrastructureto stand ahead of the curve in tapping the potential in the freight forwarding market, both in theregion and in China,” commented Victor Mok, Senior Vice President – Greater China, DHL GlobalForwarding.
The new ‘Domestic Airfreight’ service part of DHL Global Forwarding’s US$20 millioninvestment in China to further enhance its network infrastructure, human resources and products andservices. DHL has invested more than US$1.7 billion in Asia Pacific in the past few years. DHLGlobal Forwarding’s existing network in China spreads over 44 locations with coverage extended to23 cities.
