DHL enhances its LCL service network in North Asia Pacific

DHL, the world’s leading logistics company, today announced the launch of its direct LCL[1] (Less than container Load) services from Shenzhen to New York, enhancing its connectivity between South China and North America. From New York, shipments can be further distributed to nine other cities along the east coast of the United States and in the central region within five days.[2]

The new weekly service is aligned with and supports the Shenzhen government’s blueprint to develop the city into a global logistics center. In June, China’s State Council mapped out the Shenzhen Overall Comprehensive Reform Program to develop the Shenzhen-Hong Kong region into a four-pronged global hub for logistics, trade, innovation and international cultural creativity. The blueprint was announced only two months after the central government adopted the program for turning Shanghai into a “dual center” for finance and shipping.

Mr. Kelvin Leung, Chief Executive Officer, DHL Global Forwarding, North Asia Pacific, said: “DHL has seen double digit percentage growth year-on-year for LCL volumes in China. Increasingly, customers who have predominantly been using airfreight services are also looking into ocean freight for greater cost efficiencies. The launch of the new direct LCL route connecting Shenzhen and New York continues to enhance DHL’s leading position in the thriving logistics industry, which is Shenzhen’s second largest industry sector.”

The new direct weekly LCL service, operated by Danmar Lines, the in-house carrier of DHL Global Forwarding, reduces the transit time between the two destinations by at least four days compared to current services. The direct service reduces the risk of damage, loss and other contingencies, resulting in enhanced security for customers’ shipments.

Not limited to traditional port-to-port service, the new LCL service also offers complete end-to-end supply chain management, which includes pick-up at origin, consolidation and deconsolidation, delivery at destination, customs clearance and DHL Track & Trace, a unique IT system allowing customers full visibility of cargo throughout the process. The all-round reliable supply chain solutions will continue giving customers an edge over the competition.

Mr. Edward Hui, Managing Director, DHL Global Forwarding, Hong Kong, Macau and South China, said: “Shenzhen and Hong Kong are among the world’s busiest container ports in the world. Our plan to grow our LCL services is in tandem with the new government blueprint of the two cities and enables DHL to contribute to the growth of the logistics industry in both cities. The new direct service greatly enhances our strong presence in North Asia Pacific, where we can offer our customers, especially small and medium sized enterprises (SME), an expanded service portfolio and access to the largest consumer market in a safer and more efficient manner.”

DHL has also recently strengthened its existing once-a-week Hong Kong to Los Angeles LCL direct service with an additional sailing each week to meet increasing demand for ocean freight LCL services.

“The twice-weekly Hong Kong-Los Angeles service offers greater flexibility and reduced transit times for customers as we continually develop services to meet customers’ needs. Operating the world’s largest LCL network with more than 2,000,000 cubic meters of LCL freight handled annually via 45,000 point-pairs, DHL offers an unmatched service as we continue to provide the most efficient and reliable supply chain solutions for customers,” said Mr. Clas Thorell, Head of LCL Management Asia Pacific, DHL Global Forwarding.

Prior to the Shenzhen-New York LCL service, DHL has launched 13 other direct LCL services from China, India, Japan and Thailand to meet increasing demand for the services. DHL’s newly launched routes this year include:

• Chennai, India to Felixstowe, UK
• Shenzhen, China to Hamburg, Germany; Genoa, Italy; Southampton, United Kingdom; Rotterdam, The Netherlands; Antwerp, Belgium; Le Havre, France and Vancouver, Canada
• Tokyo and Yokohama, Japan to Chicago, United States of America
• Bangkok, Thailand to Los Angeles, USA; Hamburg, Germany and Tokyo, Japan

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.

² 31 days from Shenzhen to the cities of Baltimore, Boston, Buffalo, Philadelphia, Pittsburg, Richmond, Rochester, Washington, D.C.

Media Contact:

DHL Asia Pacific
Anita Gupta
Tel: +65 6216 6290
Fax: +65 6216 6603
Email: APCorporateCommunications@dhl.com

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