Question

How can DHL get revenue from air cargo sector?

Answer 1

How can DHL get revenue from air cargo sector?

• DHL is mounting a concerted effort to establish itself as the leading global logistics provider.
• It’s something of a bizarre challenge that it has set itself, given that the German mega forwarding, express, supply chain and mail combine already holds that lofty position. But, not to be dissuaded, it is intent on embracing a future strategy which, it believes, will establish beyond all doubt that it is truly top dog.
• As much has been outlined with what the company describes as its Strategy 2020, the springboard for its recently posted strong annual results for 2013, which saw the company generate revenues of more than US$75 billion (55 billion euros).
• The main focus of its strategy, will be the systematic growth of the logistics business in emerging markets and the international expansion of its express business, taking advantage of the global e-commerce boom.
• The airfreight market, it says, stagnated in 2013, despite a slight volume increase in the second half of the year. Freight volumes were lower overall, it says, due to the decline in output in some industry sectors. Moreover, customers throughout the market increasingly chose other modes of transport.
• But even in a stagnating market, DHL Global Forwarding transported more than 2.3 million tonnes of export airfreight in 2013, assuring its position as the market leader.
• Indeed, its main rivals can barely reach half these tonnages.
• But it has hardly been an inspiring start to the year. Results for the first quarter, recently posted by the company, still show flat-lining airfreight volumes.