DHL launches new direct LCL services from Shanghai to Buenos Aires and Valparaiso

DHL, the world’s leading logistics company, today announced the launch of its direct Less than Container Load[1] (LCL) services from Shanghai, China to Buenos Aires, Argentina, and Valparaiso, Chile enhancing its connectivity between South America and China.

Buenos Aires and Valparaiso are two major ports in South America. Buenos Aires is the second largest city and one of the biggest ports in South America. Valparaiso is the second largest city and one of the biggest seaports in Chile. In 2007, the Shanghai Port and Valparaiso Port signed an agreement to become sister ports. Both cities are important industrial and transportation hubs, offering easy access to other ports and inland cities in South America through established road and rail networks.

The launch of the new services will facilitate the trading activities between Chinese and South American businesses, especially small and medium enterprises. China has maintained a rapidly growing momentum in import and export with Chile and Argentina. Chile is the third largest trading partner of China in Latin America, while China is the second largest trading partner of Chile in the world. China-Chile bilateral trade value reached US$17.53 billion in 2008, increasing 19.3% year-on-year. Argentina is the fourth largest trading partner of China in Latin America, and China is the third largest trading partner of Argentina globally. China-Argentina bilateral trade value increased 45.4% year-on-year to US$14.4 billion in 2008[2]

“The launch of the direct LCL services from Shanghai to Valparaiso and Buenos Aires signals our commitment to help customers stay ahead of the game. As a global trade facilitator, DHL’s LCL services serve as a vital link between China and key markets in South America and help businesses extend their global reach in the most cost-efficient manner while still benefitting from our service flexibility and reliability,” said Mr. Kelvin Leung, CEO, DHL Global Forwarding, North Asia Pacific.

Danmar Lines, DHL Global Forwarding’s in-house carrier, operates the new weekly direct LCL services. Customers can expect their shipments to arrive in Buenos Aires and Valparaiso within 28 and 30 days respectively, with time savings of up to fifteen days as cargo is shipped directly from Shanghai to Buenos Aires and Valparaiso instead of being routed via Hong Kong. Through the launch of the two routes, DHL Global Forwarding will further enhance the seamless flow of ocean freight cargo through Shanghai to South American countries. DHL currently offers 19 direct LCL services that ply between Asia and South America.

Mr. Steve Huang, Managing Director, DHL Global Forwarding, China North, said, “Today’s launch of our new direct LCL services to South America is part of DHL’s on-going plans to expand our own operated, weekly guaranteed, LCL services in China. This is in line with our commitment to the Chinese logistics Industry to provide value-added solutions that meet customers’ varied needs.”

As a global leader in LCL, DHL carries more than 97% 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.

Mr. Clas Thorell, Head of LCL Management Asia Pacific, DHL Global Forwarding, added, “The direct LCL services from Shanghai to South America further enhance the strong global connectivity offered by DHL’s extensive LCL network. With the introduction of these new services, we will help customers expand and strengthen their supply chain in the China-South America trade lane.”

DHL currently operates the world’s largest LCL network with more than 2,000,000 cubic meters of LCL freight handled annually via 45,000 point pairs within the DHL in-house system.

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 Source: China Customs Statistics

Media Contact:

DHL Global Forwarding North America
Candace Bouchard
Tel: 203-655-5792
Fax: 203-853-9653
Email: candace.bouchard@dhl.com

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