Market Overview

DHL Enhances LCL Service Offerings from China to U.S.

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MIAMI--(BUSINESS WIRE)--

DHL, the world's leading logistics company, today announced the launch of its direct Less than Container Load1 (LCL) service from Shanghai to Seattle. The service will work to further boost DHL's capabilities to help Chinese businesses extend their footprint into the U.S. market in a cost-effective manner. With expanding trade between Shanghai and Seattle, this new service will also ensure secure and faster arrival of the main commodities being transported from China, among them grain, seeds, fruit, machinery, fish and seafood.

The new direct weekly LCL service, operated by Danmar Lines, will cover freight moving from Mainland China to Seattle and Portland on the West Coast in the U.S. and can reduce the overall transit time between China and the U.S. by four days. With cargo shipped directly from Shanghai to Seattle, customers can expect their shipments to arrive in the U.S. within 12 days.

“Most of the freight arriving on the west coast comes into the Port of Los Angeles, so by DHL offering a direct service into Seattle, we are not only providing customer's shorter transit times but also lessening the carbon footprint,” said Tara Caputo, director of LCL for DHL Global Forwarding North America. “By adding this additional direct service from Asia to the northwest region of the U.S., DHL continues to strengthen its overall portfolio of LCL services to customers who are looking for more direct routes with more flexibility.”

Increasingly, MNCs and SMEs alike in China are turning to ocean freight for greater cost efficiencies when introducing a new or expanding an existing export strategy. In 2010, the Port of Shanghai surpassed Singapore to become the world's busiest and largest container port, with a total container throughput of 29 million TEUs. Most recently, Shanghai announced plans to kick start the fourth phase of expansion at Yangshan Deep-Port, a project estimated to cost more than US$1.5 billion. The expansion will increase the deepwater port's handling capacity by 40 percent to 9.3 million TEUs by 2015 and facilitate Shanghai's efforts to build an international shipping hub.

“While the Port of Los Angeles receives the bulk of ocean freight traffic on the west coast, Seattle is also listed as one of the top ten U.S. Customs districts. The Port is fully equipped with container terminals, a foreign trade zone, break-bulk and refrigerated cargo and storage on the premise which allows us to be more efficient when serving our customers,” said Mark McGonegal, regional vice president West Region for DHL Global Forwarding. “Thanks to Seattle's strategic location and the Port's capacity we were able to respond to the positive input for this type of service from our Pacific Northwest customers.”

DHL currently operates the world's largest LCL network with close to 2,000,000 cubic meters of LCL freight handled annually via 45,000 point-pairs. As a global leader in LCL, DHL carries more than 97 percent of its total volumes in house. The in-house systems and strong global network enables the control of cargo flow, information flow, speed, accuracy, cost efficiency and reliability. Going beyond port to port, DHL LCL service also offers a complete end-to-end supply chain management that includes pick-up at origin, consolidation and deconsolidation, delivery at destination and customs clearance.

All LCL services are accompanied by DHL's first-class IT solutions such as DHL Track & Trace and other tools to allow full visibility throughout the whole supply chain. For complete peace of mind, DHL also provides insurance services to customers as a value-added service. DHL's Shippers Interest Insurance (SII) covers losses or damages of all cargo transported by DHL, as well as transportation costs.

DHL The Logistics company for the world

DHL is the global market leader in the logistics industry and “The Logistics company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 51 billion euros in 2010.

1 Less than Container Load (LCL) refers to smaller amounts of ocean freight cargo that are insufficient to fill a Full Container Load (FCL) on its own. The service is widely used by customers across many industries as it offers greater flexibility in the management of supply chains by being able to ship smaller quantities on a timelier basis.

DHL Global Forwarding, Americas
Jennifer Pakradooni, +1-786-264-3684
jennifer.pakradooni@dhl.com

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