DHL Express is expanding its network in Sweden after successfully improving its financialresults and performance levels in the country.
The company increased its profits significantly last year from a low level in 2009 and hasfurther improved them again this year, Ted Söderholm, country manager, told a European mediabriefing in Leipzig. He did not disclose any absolute figures for profits.
The company is clearly focusing again on its core business of international air expressshipments, Söderholm stressed. The product portfolio is based around the air-based time-definiteproducts, supported by road-based day-definite services and the premium same-day products. DHLExpress Sweden offers a limited B2C service only. “We do what is necessary but nothing more,” hesaid.
Overall, DHL Express claims to have 36% of the Swedish international air express market, aheadof UPS (26%), TNT (14%), PostNord (7%) and FedEx (6%). The market is estimated at 3.3 millionoutbound shipments a year and revenues of €186 million, he told European journalists.
The business had steadily improved its performance levels and reduced errors in recent years.The two exceptional periods of the Icelandic volcanic eruption in April 2010 and severe weather inwinter 2010-11 had shown employees’ ‘Can Do’ commitment to keeping the business going, Söderholmsaid. Over the first eight months of this year, Sweden was the best-performing country in terms ofend-to-end service performance in the DHL Express network, he added.
The company will increase its time-definite prices by 3.5% in Sweden from January 1, 2012, whileday-definite prices will go up by 4.9%.
With some 550 employees and 155 vans, DHL Express Sweden handles about 2.5 – 3 millioninternational air express shipments a year and covers the country through four gateways, three ofthem with direct flights.
The latest facility is a new centre at Örebro airport in central Sweden which opened last month,with capacity to sort up to 1,600 pieces an hour. This is served with five weekly B737F flightsenabling late cut-off times and pre-12.00 morning deliveries. “We were far-off compared to thecompetitors,” Söderholm admitted, referring to delivery times prior to the opening. Now the companyhad won back market share in the region thanks to the direct flights.
The other two gateways with direct flights are Stockholm’s Arlanda airport and Landvetter(Gothenburg) while the 4,000 sqm Malmo facility, which opened at the start of this year, is servedby flights through Copenhagen airport.
