UPS launches service improvements in Beijing, Shanghai and Tianjin to support Chinese exporters’ expansion to global markets [Integrator]
China’s export manufacturing sector and economy face growing headwinds since 2014
Export manufacturers learn from Made in China 2.0™ Leaders, who have experienced significant improved business performance
UPS® (NYSE:UPS) announced the release of the 2016 Made in China 2.0™ also known as the MiC 2.0™ Report, which provides a clear way forward for China’s manufacturing sector as it faces growing headwinds. In order to remain competitive amidst China’s economic transformation, Chinese export manufacturers can learn from MiC 2.0™ Leaders who have implemented successful strategies to achieve better business performance and growth.
According to the MiC 2.0 report, export manufacturers are more pessimistic than before, with 29% of the companies saying the economy is worse than in 2014, up from 16%. Chinese export manufacturers are facing challenges on both demand and supply: two of the most commonly-cited challenges are increasing competition from Chinese companies (39%) and decreasing demand from Chinese customers (37%).
“Against a backdrop of intensifying pressures in China, it is clearer now than before that the future survival and success of export manufacturers would depend on their willingness to make changes to the way they do business,” said Richard Loi, President of UPS China. “Offering a lower price is not the optimal solution to remain competitive. Higher quality products (83%), showing an understanding of the customers’ business (82%) and offering a faster and more efficient supply chain (82%) are the top reasons for customers to switch suppliers. This indicates a need to shift from low-prices to offering higher quality products and providing value-add by building closer partnership with customers.”
“The pillar industries that used to support China's economy have been losing vitality for a long time, and there is an urgent need for new industries to drive the next round of economic growth,” said Professor Huang Yiping of Peking University’s National School of Development. “But the majority of export manufacturers have yet to take the first step toward industry upgrading. What can be done to convert the successful experiences of leading companies into practical guidelines for tens of thousands of other companies in China? This is precisely the question this year’s Made in China 2.0 report aims to tackle.”
Much can be learned from the MiC 2.0 Leaders – leading companies that have adopted strategies and logistics for developing foreign market growth. MiC 2.0 Leaders are companies in the top 8% of the MiC 2.0 Readiness Index ¹, which assesses Chinese export manufacturers’ preparedness for the future of their industry.
MiC 2.0 Leaders have outperformed other export manufacturers in productivity, market share, revenue and profit, are more likely to be on a growth trajectory and are 7% less likely to see a decline in their business. They provide a model of success for other Chinese export manufacturers, who can learn from the following growth strategies:
Wider geographical footprint
97% of MiC 2.0 Leaders sell to at least one market in Asia, and are more focused than other export manufacturers on key markets in Asia and Europe such as Thailand (161%), Hong Kong (151%), France (126%), Indonesia (116%) and the UK (115%). Leaders are also six times more likely to sell to Oceania and two times more likely to sell to Eastern Europe.
Serving a more diversified customer base of both B2B and B2C customers
Two-thirds of MiC 2.0 Leaders (64%) sell to a mix of both B2B and B2C customers while other export manufacturers are more focused on B2B manufacturing, which is associated with lower-margin and lower-quality production.
Understanding the role of logistics
MiC 2.0 Leaders understand that investing in logistics can add value to key business objectives. They are three times more likely to recognize that logistics can play a highly important role in reducing costs and growing sales, and two times more likely to enhance the customer experience.
Priorities for the future
MiC 2.0 Leaders are significantly more likely than other export manufacturers to rate improving logistics (170%) and growing sales (168%) as highly important priorities for future success.
Selling finished vs unfinished goods
MiC 2.0 Leaders are 63% less likely than other export manufacturers to sell mainly unfinished goods, indicating a move toward selling more finished goods as Leaders focus on product innovation and the move up the value chain.
Identifying the impact of emerging trends
MiC 2.0 Leaders are more likely to recognize that nearshoring (41%), industry e-commerce (29%) and consumer e-commerce (24%) are emerging industry trends that will have a big impact on their business.
UPS provides strong support for businesses in China
Loi added: “As a global trade enabler and leader in integrated logistics solutions, UPS is well-positioned to help export manufacturers in China succeed and export globally. To this end, we are continually enhancing our service capabilities to provide strong support for businesses in China as they look toward global markets. This is why we are implementing service enhancements that include later pick-up time and faster time-in-transit in key cities such as Beijing, Shanghai and Tianjin.”
Customers in Beijing and Tianjin can benefit from faster transit times up to 24 hours, and pick-up cut-off time extension up to 2.5 hours in Beijing and 3 hours in Tianjin. Customers in Shanghai can benefit from pick-up cut-off time extension up to 1.5 hours. These enhancements improve accessibility for China businesses seeking a presence in global markets by providing the flexibility to import and export goods in a timely and effective manner.
In second and third tier cities, UPS is also expanding its presence to meet the needs of exporters. In 2015, UPS expanded into 21 new cities as part of its long term growth strategy in China. These cities are primarily in the Jiangsu, Shandong, Zhejiang and Guangdong provinces and Chongqing Municipality.
UPS’s 2016 MiC 2.0 report is a timely reminder that the necessity for change in the way export manufacturers conduct their businesses remains great. As China undergoes economic transformation, UPS will continue to support ongoing government initiatives such as Made in China 2025 and ‘One Belt One Road’ by expanding its scope of services to respond to customers’ evolving business needs – helping them to improve efficiency, quality control, speed-to-market, cash flow and profitability as they go global.
For more information about the UPS 2016 Made in China 2.0 Report, please visit www.ups.com/lianhe.
1. The MiC 2.0 Readiness Index combines a Recognition Score based on how well companies understand the Made in China 2.0 Priorities and a Performance Score that assess how well companies are delivering on those priorities within their organizations. The MiC 2.0 Readiness Index is marked out of 100 by combining a company’s Recognition score (marked out of 50) and Performance Score (marked out of 50). MiC Leaders have a MiC Readiness Index score of 90 and above.
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. The company can be found on the web at ups.com® and its corporate blog can be found at longitudes.ups.com. To get UPS news direct, visit pressroom.ups.com/RSS or follow Weibo (@UPS中国) and WeChat (@UPS中国动态).
About UPS Made in China 2.0TM Report
Research for the Made in China 2.0TM Report was conducted by Lightspeed GMI on behalf of UPS and Caixin Media. A total of 1,000 senior decision-makers in export manufacturing companies across China were interviewed. To qualify for the study, a respondent had to work for a company that exported at least 40% of the value of the goods it produced and have senior decision-making responsibilities within that company. Interviews were conducted in December 2015.
Posted at 13:43 パーマリンク
ICTSI 1H2016 Throughput up 10%; EBITDA improved 8% to all-time high; Net Income reduced by start-ups, down 13% to US$87.3 million [Seaport]
International Container Terminal Services, Inc. (ICTSI) today reported unaudited consolidated financial results for the first half of 2016 posting revenue from port operations of US$550.8 million, a slight decrease of 0.2 percent from the US$552.1 million reported in the first six months of 2015; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$257.5 million, eight percent higher than the US$237.4 million for the same period last year, and net income attributable to equity holders of US$87.3 million, down 13 percent against the US$100.4 million earned in the first half of 2015. Net income attributable to equity holders declined mainly due to unfavorable volume mix, lower non-containerized & storage revenues, and lower capitalized borrowing costs and higher depreciation & amortization expenses related to Tecplata S.A. (“Tecplata”), the company’s new terminal in Buenos Aires, Argentina. Excluding the effect of Tecplata and new projects, consolidated net income attributable to equity holders would have increased by six percent. Diluted earnings per share for the period was 26 percent lower at US$0.031 compared to US$0.042 in the same period in 2015.
For the quarter ending June 30, 2016, revenue from port operations increased 11 percent from US$256.0 million to US$284.3 million and EBITDA surged 23 percent to US$135.5 million from US$109.8million. Net income attributable to equity holders declined three percent from US$46.4 million to US$45.1 million in 2016 mainly due to higher depreciation, amortization and interest expense related to Tecplata. Diluted earnings per share for the quarter decreased 11 percent from US$0.019 in 2015 to US$0.017 in 2016.
ICTSI handled consolidated volume of 4,264,633 twenty-foot equivalent units (TEUs) in the first six months of 2016, 10 percent more than the 3,888,130 TEUs handled in the same period in 2015. The increase in volume was mainly due to the continuing ramp-up at ICTSI Iraq; new shipping line customers and services in the Company’s terminals in Guayaquil, Ecuador, Manzanillo, Mexico, Karachi, Pakistan and Jakarta, Indonesia; and improvement in trade activities at most of the terminals in the Asia region. For the quarter ending June 30, 2016, total consolidated throughput was 16 percent higher at 2,210,994 TEUs compared to 1,905,357 TEUs in 2015.
Gross revenues from port operations for the first half of 2016 was slightly lower at US$550.8 million compared to the US$552.1 million reported in the same period in 2015. The 0.2 percent decrease in revenues was mainly due to unfavorable container volume mix, lower non-containerized & storage revenues, and unfavorable translation impact of the depreciation of local currencies to the US dollar at certain terminals. The decline however was partly offset by tariff rate adjustments and new contracts with shipping lines and services at certain terminals, and the continuing ramp-up at ICTSI Iraq. Excluding the translation impact of local currency depreciation to the US dollar, particularly the 24 percent depreciation of the Brazilian Reais (BRL) at TSSA; the 19 percent depreciation of the Mexican Peso (MXN) at Contecon Manzanillo S.A. (“CMSA”); and the five percent depreciation of the Philippine Peso (PHP) at the various Philippine terminals, consolidated gross revenues would have increased by three percent. For the second quarter of 2016, gross revenues increased 11 percent from US$256.0 million to US$284.3 million. The strong revenue growth in the second quarter was driven by the continuing ramp-up at ICTSI Iraq, tariff rate adjustments and new contracts with shipping lines and services at certain terminals.
Consolidated cash operating expenses in the first half of 2016 was 10 percent lower at US$204.2 million compared to US$226.5 million in the same period in 2015. The reduction in cash operating expenses was mainly driven by lower costs of repairs & maintenance and equipment rental at certain terminals; lower fuel costs as a result of the lower global prices of fuel and operational efficiencies; lower variable costs at ICTSI Oregon; the implementation of the group-wide cost optimization initiatives, and the favorable translation impact to the US Dollar of the Brazilian, Mexican and Philippine terminals’ local currency expenses. The decline in cash operating expenses, however, was tapered by the expense contributions and start-up costs of new terminals and projects in Argentina, Australia and Democratic Republic of Congo.
Consolidated EBITDA for the first half of 2016 increased eight percent to US$257.5 million from US$237.4 million in 2015 mainly due to the strong volume and revenue growth in the second quarter, and lower cash operating expenses for the period. Excluding the translation impact of currency depreciation, consolidated EBITDA would have increased by nine percent in the first six months of 2016. Consolidated EBITDA margin, on the other hand, increased to 47 percent in the first half of 2016 compared to 43 percent in the same period in 2015 as the new terminals continue to ramp-up and improve efficiencies.
Consolidated financing charges and other expenses for the first six months of 2016 increased 38 percent to US$45.9 million from US$33.3 million in 2015 mainly due to slightly higher average loan balance and lower capitalized borrowing costs due to the cessation of the capitalization of interest expense as the Company opened its new terminal in Buenos Aires, Argentina.
Capital expenditures for the first half of 2016 amounted to US$157.8 million, approximately 38 percent of the US$420.0 million capital expenditure budget for the full year 2016. The established budget is mainly allocated for the completion of the initial stage of the Company’s new container terminals in Australia, Democratic Republic of Congo and Iraq, and the continuing development of the Company’s projects in Honduras and Mexico. In addition, ICTSI invested US$32.3 million in the development of SPIA, its joint venture container terminal development project with PSA International Pte Ltd. (PSA ) in Buenaventura, Colombia. The Company’s share for 2016 to complete the initial phase of the project is approximately US$60 million.
ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to 2.5 million TEU/year range. ICTSI has an experience record that spans four continents and continues to pursue container terminal opportunities around the world.
Posted at 13:36 パーマリンク
Deutsche Post DHL Group continues strong earnings trend in the second quarter [Integrator]
Group EBIT increases by 40.0% to EUR 752 million
Guidance for full-year 2016 confirmed: operating profit forecast to rise to between EUR 3.4 billion and EUR 3.7 billion
Guidance for full-year 2016 confirmed: operating profit forecast to rise to between EUR 3.4 billion and EUR 3.7 billion.
Deutsche Post DHL Group increased operating profit significantly in the second quarter of 2016. Group EBIT climbed to EUR 752 million, or a 40.0% increase over the prior-year period (2015: EUR 537 million). With this, the company recorded its best ever second quarter, as the strong earnings momentum of the preceding two quarters continued. Group revenue decreased by 3.5% to EUR 14.2 billion between April and June 2016 (2015: EUR 14.7 billion). In addition to negative currency effects and lower fuel surcharges, the decline primarily reflects a change in the recognition of revenue generated from a key customer contract in the Supply Chain division, which started in the fourth quarter of 2015. Adjusted for the above effects, Group revenue rose by 4.1% year on year.
"Our successful business performance and the strong increase in operating profit we achieved in the second quarter demonstrate that we took the right decisions and made the right investments in 2015, a year of transition, to set the stage for improving our profitability this year and in the years to come. Having posted the strongest second quarter in our history, we remain well on track towards achieving our targets. Our Post - eCommerce - Parcel division in particular contributed to the positive trend. PeP management is continuously expanding the division's market-leading position through future-oriented investments and trend-setting innovations," stated Frank Appel, CEO of Deutsche Post DHL Group.
Outlook: Earnings forecast for 2016 and long-term objectives confirmed
Although global economic growth remains only moderate, the strategic initiatives implemented in all four divisions are expected to significantly increase EBIT performance for full-year 2016. Deutsche Post DHL Group therefore re-confirms its full-year 2016 forecast for Group EBIT to be between EUR 3.4 billion and EUR 3.7 billion. The Group is also maintaining its targets beyond 2016: Deutsche Post DHL Group continues to forecast an average increase in operating profit of more than 8% annually during the period from 2013 to 2020 (CAGR).
Q2 2016: Profitability increases significantly
Although the moderate revenue development continues, both the Post - eCommerce - Parcel (PeP) division and the DHL divisions contributed to the substantial 40.0% increase in second-quarter Group EBIT to EUR 752 million (2015: EUR 537 million). Operating profit at PeP improved to EUR 247 million (2015: EUR 75 million). The DHL divisions reported a combined increase in EBIT of 10.5% to EUR 591 million (2015: EUR 535 million). Express saw another strong EBIT increase of 11.7% to EUR 420 million. Global Forwarding, Freight maintained the positive trend of the preceding quarters with an EBIT increase of nearly 75%, from EUR 40 million to EUR 69 million. Operating profit at Supply Chain declined due to restructuring costs with a decrease from EUR 119 million to EUR 102 million.
Thanks to the increase in operating profit and lower financing costs, consolidated net profit improved by 66.0% to EUR 541 million in the second quarter of 2016 (2015: EUR 326 million). Basic earnings per share saw a similar increase, from EUR 0.27 in the previous year to EUR 0.45 in 2016.
Capital expenditure: Foundation for growth reinforced
Group capital expenditures rose by 8.3% to EUR 456 million in the second quarter of 2016 (2015: EUR 421 million). Investments continued to focus on positioning the Group for future profitable growth in all four divisions. For example, Deutsche Post DHL Group made further progress in extending its national and international parcel infrastructure and invested in the production of its electric vehicles StreetScooter in addition to expanding global and regional hubs in the Express division as well as modernizing and expanding the aircraft fleet.
Cash flow: Strong performance impacted by pension provisions
The change in both operating cash flow and free cash flow in the second quarter reflects the further funding of pension obligations, which led to a cash outflow of EUR 1 billion in April 2016. The cash inflow from the placement of two bonds is recognized under cash flow from financing activities.
The cash outflow from pension funding led to a decrease in operating cash flow to EUR -161 million in the second quarter (2015: EUR +266 million), while free cash flow declined to EUR -600 million (2015: EUR +67 million). When this effect is excluded, the Group's cash flow performance was very strong in the second quarter: On an adjusted basis, operating cash flow was EUR 573 million higher than in the prior-year period at EUR 839 million, while adjusted free cash flow rose by EUR 333 million to EUR 400 million. The improvement reflects not just the significant improvement in operating net profit, but also good performance in working capital management.
Post - eCommerce - Parcel: Strong growth continues in the parcel business
Revenue in the Post - eCommerce - Parcel division increased by 7.8% to EUR 4.0 billion in the second quarter (2015: EUR 3.7 billion). In addition to the postage stamp price increase implemented at the beginning of the year, the division's positive performance was driven above all by volume and revenue increases in the eCommerce - Parcel business unit. In addition, the second quarter of 2016 included three more working days than the prior-year period. The second quarter of 2015 was also impacted by the postal strike in Germany.
Revenue in the eCommerce - Parcel business unit increased by 14.2% to EUR 1.7 billion. The increase was based on revenue gains of 15.3% for Parcel Germany, 18.1% for Parcel Europe and 8.5% for eCommerce. The upward trend shows how Deutsche Post DHL Group continues to benefit from positioning itself successfully as a market and innovation leader in the high-growth e-commerce segment. The company is expanding on its position by offering services such as time-window delivery, which was recently expanded and is now available throughout Germany.
Revenue in the Post business unit rose by 3.6% to EUR 2.33 billion (2015: EUR 2.25 billion). This performance reflects the positive effect of the additional working days and the increase in letter postage prices at the beginning of the year, which more than offset the structural decline in volumes in the Mail Communication and Dialogue Marketing segments.
In terms of operating profit, the PeP division registered its best second quarter since 2008. EBIT climbed to EUR 247 million, up from EUR 75 million in the prior-year period when operating profit had been reduced by around EUR 100 million due to the postal strike in Germany. After adjusting for this effect, EBIT improved by 41% compared with the second quarter of 2015. This figure reflects not only the effect of the additional working days, but also - and especially - the positive effects of revenue growth, which was attributable to the increase in postage prices and sustainable growth at eCommerce - Parcel.
The PeP-division entered the liberalized long-distance bus market in October 2013. Within a short period of time it was able to become the quality leader in the market with its Postbus service. However, the Postbus service has not met the company's financial expectations sufficiently. Therefore, the company has decided to withdraw from the market and has agreed to a sale of its Postbus business to FlixMobility GmbH.
Following the positive ruling of the General Court of the European Union (EGC) on a European Commission state aid decision from 2012, the Group reclassified a total of EUR 378 million that had been paid into an escrow account to current financial assets at the end of the second quarter. This contributed to a decline in net debt to EUR 3.5 billion. The repayment, which already took place, does not impact Group earnings.
Express: Success story continues with a new record margin
In the second quarter, the Express division again continued its very positive revenue and earnings performance. Revenue rose by 2.0% to EUR 3.52 billion (2015: EUR 3.46 billion). Adjusted for negative currency effects and lower fuel surcharges, the increase was 7.2%. This strong performance was once again driven by solid growth in the international time-definite (TDI) shipments business, where daily volumes rose by 8.2% in the second quarter compared with the prior-year period. At the same time, Express focused on disciplined yield management.
Divisional EBIT rose by 11.7% to EUR 420 million between April and June 2016 (2015: EUR 376 million), with negative currency effects preventing an even greater increase. The operating margin further improved to an all-time high of 11.9% (2015: 10.9%). This excellent margin performance was also supported by the low reported revenue growth.
Global Forwarding, Freight: Additional improvement in operating profit
Revenue in the Global Forwarding, Freight division decreased by 9.3% to EUR 3.4 billion in the second quarter of 2016 (2015: EUR 3.8 billion). Adjusted for negative currency effects and lower fuel surcharges, revenue declined by 3.1%. Apart from the still weak market environment, the main reason for the revenue decline was the division's selective market strategy.
Operating profit improved by 72.5% in the second quarter to EUR 69 million. With this development, EBIT rose strongly for the third consecutive quarter. The increase would have been even greater without the non-recurring effects in the prior year quarter, including gains of EUR 99 million generated from the sale of shares in logistics firm Sinotrans. The earnings trend shows that the measures initiated last year to sustainably improve profitability at Global Forwarding, Freight are achieving positive results.
Supply Chain: New business continues to perform well
Revenue in the Supply Chain division decreased by 12.5% to EUR 3.5 billion in the second quarter (2015: EUR 4.0 billion). Adjusted for negative currency effects, revenue declined by 8.1%. After additionally adjusting for lower fuel surcharges and the effect of the change in revenue recognition due to revised terms in the UK NHS contract, as announced in 2015, revenue increased by 4.4% over the previous year. Supply Chain continued to generate additional new business. In the second quarter, the division concluded additional contracts worth around EUR 296 million with both new and existing customers.
Divisional EBIT declined by 14.3% to EUR 102 million in the period from April to June (2015: EUR 119 million). The decrease was due to scheduled restructuring costs of EUR 16 million as part of the division's optimization program. The goal is to increase the margin in the Supply Chain division to between 4% and 5% by 2020 by increasing standardization, improving efficiency and better leveraging economies of scale in the global business.
First half: Operating profit up sharply
Group revenue fell by 4.8% to EUR 28.1 billion in the first half of 2016 (2015: EUR 29.5 billion). Excluding the aforementioned negative factors, Group revenue increased by 2.7% versus the prior-year period. Operating profit of Deutsche Post DHL Group climbed by 29.3% to EUR 1.6 billion in the first six months (2015: EUR 1.3 billion). As with revenue, the effects described for second-quarter operating profit also impacted the first-half figures. Consolidated net profit rose by 43.7% to EUR 1.2 billion in the first six months of 2016 (2015: EUR 821 million). Basic earnings per share increased to EUR 0.98 in line with the increase in profit.
Posted at 14:22 パーマリンク
DHL now delivers parcels to Smart car trunks [Integrator]
DHL Parcel and Smart today announced a joint pilot in which owners of Smart cars can use their vehicles as mobile addresses for car drops starting in autumn. The project partners have worked in recent months to develop and test a solution to ensure high security standards for merchandise and vehicles.
An expanded market test will be conducted in the German town of Stuttgart in autumn this year. The car drop service will be offered a few months later in Bonn, Berlin and Cologne. By attracting several hundred participants in each city, partners DHL Parcel and Smart aim to collect feedback under near-reality conditions. Smart owners wanting to take part in the pilot can go to www.smart.com/drop for information and submit their applications from September. Installation of the devices needed to participate in the pilot will be performed at local distributors, with Smart assuming the costs. When registering their car for the pilot with Smart, customers can also fill out the necessary DHL car-trunk delivery agreement in just a few simple steps. DHL Parcel’s customer portal www.paket.de has been linked with Smart’s own customer portal to combine the two processes into one.
"As a leader of innovation in the parcel sector, with DHL Parcel we are pursuing the goal of developing new ideas to supplement our diverse range of solutions to make it easier to send and receive a parcel, and to personalize the process to meet customers’ needs," says Jürgen Gerdes, CEO Post - eCommerce - Parcel at Deutsche Post DHL Group. "Having successfully tested car-trunk deliveries as part of a pilot in Germany, we are using the knowledge we have gained to work with Smart to develop a new and attractive service for a young, extremely online savvy target group."
Smart CEO Annette Winkler agrees: "With the new service, we are expanding the ways in which our vehicles can be used to offer a broader mobility model that goes beyond the car itself. The pilot also kicks off our campaign to improve the quality of urban life."
Smartphone based solution
The joint solution from Smart and DHL Paket is smartphone based, with the Smart driver and the DHL parcel courier using specially designed apps. The vehicle owner uses the Smart app to generate a single-use transaction authorization number (TAN) which they enter in the "c/o" box when stating their delivery address for purchases in an online shop. For the car drop to take place, the vehicle simply has to be parked in the vicinity of the owner’s home address.
The DHL parcel courier is informed of the preferred delivery location via an app, receiving time-limited access to the recipient’s car. The single-use TAN the online shopper enters when placing their order enables the courier to locate and open the vehicle within a set period of time. Having gained access to the trunk, the courier can either deposit a parcel or retrieve a shipment for return. Once the courier closes the trunk, the TAN authorizing them access is cancelled. A push message sent via the app notifies the car owner that the delivery has taken place.
By allowing customers to use their cars as mobile delivery addresses, DHL Paket is adding yet another attractive option to its unique range of automated parcel receipt services in Germany. With the DHL Packstation service, parcel boxes for single-dwelling and multiple-dwelling homes, deliveries to a predefined, preferred location – plus car-trunk deliveries to Smart cars from autumn onwards – DHL Paket serves growing consumer demands for more mobility and more flexibility in meeting their every-day needs.
Posted at 21:34 パーマリンク
DHL enters strategic partnership with Ambatovy in Madagascar [Integrator]
DHL Global Forwarding, the air and ocean freight specialist within Deutsche Post DHL Group, has entered into an initial three-year Global Freight Forwarding agreement with Ambatovy. Ambatovy is a joint venture between Sherritt International Corporation, Sumitomo Corporation and Korea Resources Corporation and a large-tonnage, long-life nickel and cobalt mining enterprise, which at full capacity will produce 60,000 tonnes of refined nickel, 5,600 tonnes of refined cobalt and 210,000 tonnes of ammonium sulphate fertilizer annually.
This agreement was secured and will be managed by DHL's Industrial Projects team which handles very large break-bulk and complex project logistics. The agreement encompasses two contracts where DHL will provide on-shore and off-shore services. For the on-shore contract, DHL is responsible for providing import customs clearance for airfreight shipments of mining spare parts into Madagascar, with delivery to the Ambatovy mine site from Antananarivo to Moramanga and to the plant at Toamasina through daily shuttle services.
For off-shore services, DHL will provide international air and ocean freight for importation of mining equipment to support Ambatovy's nickel, cobalt and ammonium sulphate production, consolidated at key DHL hubs in the US (Houston), Canada (Montreal), Europe (Antwerpen), Africa (Johannesburg) and China (Shanghai). The agreement will enable Ambatovy to benefit from the DHL Material Management System (MMS), an integrated in-house information management system that enables sharing of information and also controls business processes across various organizational borders. With the MMS, Ambatovy will have real time visibility of its shipments during the move.
"This agreement is especially meaningful as it enables DHL to help Ambatovy manage its supply chain in order to sustain its operations in Madagascar. Our partnership will enable Ambatovy to tap into our global expertise in project forwarding, and extensive network spanning over 220 countries and territories - enabling us to operate efficiently even in challenging and remote locations, and more importantly, facilitate global trade flows and the development of infrastructure globally," said Nikola Hagleitner, CEO of Industrial Projects, DHL Global Forwarding.
Steven Cox, Director, Supply Chain Management at Ambatovy, said, "We are delighted to partner DHL for our freight forwarding needs. It is critical we have direct access to our global suppliers in order to keep the operations up and running. With their track record in these areas, we are convinced they are the right partner to drive improvements in our supply chain and business."
DHL Global Forwarding Industrial Projects offers services that include multi-supplier delivery and consolidation to one location over several years, transporting a 1,000-ton module across the world, or preparing a route and feasibility survey - all significant and highly technical steps in setting up industrial plants and construction sites. The focus sectors include Engineering, Procurement & Construction, Oil & Gas, Mining, Wind and Engineering & Manufacturing.
Posted at 21:33 パーマリンク
DHL announces $137 million investment plan in U.S. e-commerce infrastructure and services [Integrator]
Deutsche Post DHL Group exploits booming U.S. e-commerce business
DHL eCommerce significantly expands capabilities for the worldwide cross-border e-commerce market, reaching $1 trillion by 2020
Renowned German soccer club FC Bayern Munich welcomes the Group's increasing logistics service capabilities in North America
Deutsche Post DHL Group announced a $137 million investment plan for the U.S. domestic and cross-border e-commerce market. The Group's objective is to exploit the global B2C e-commerce market for shipments crossing borders which is expected to grow from $400 billion today to a total global volume of $1 trillion in 20201. Since U.S. online merchants take the leading role in selling internationally, DHL eCommerce will make substantial investments in the United States in the next years and expand its capabilities to serve businesses selling abroad significantly. The announcement was made in conjunction with the DHL eCommerce and DHL Supply Chain divisions further implementing regionalized fulfillment centers in Los Angeles, Columbus, Ohio, and New Jersey, significantly increasing the companies' order fulfillment capabilities in North America collaboratively.
"There is barely any other industry that provides such a promising outlook than the e-commerce business. It is expected that one billion people will shop online and across borders by 2020 with the U.S. being the most popular origin for 25 percent of consumers worldwide. With our investments we lay the foundation to expand our leading role in cross-border e-commerce logistics, serve our U.S. customers with the best possible infrastructure and solutions, and gain future market shares," says Charles Brewer, CEO DHL eCommerce.
A promising outlook
DHL eCommerce is looking to profit from these developments and to increase its e-commerce footprint in the United States. In line with the Strategy 2020, the Group has made and will continue to make significant investments. After the first order fulfillment center opened in Columbus, Ohio, last year and followed by a facility in Los Angeles, DHL eCommerce will establish further regional centers of this kind in New Jersey and other locations in 2017. Additionally, DHL Express celebrates the opening of a new, $1.3 million service center facility in Chicago to meet heavy demand from e-commerce customers. And just one year ago, also DHL Global Forwarding opened up a $35 million distribution center in Chicago. All of these infrastructural engagements will provide merchants with the opportunity to place inventory closer to consumers in order to speed-up delivery.
Today's global B2C cross-border e-commerce market comprises approximately $400 billion and is expected to expand rapidly. Particularly emerging markets are going to fuel the estimated annual growth rate of 28 percent, followed by Western Europe and North America. Thanks to China's growing middle class, which will reach 630 million people by 2022, most of the purchasing power will come from Asia-Pacific and equal about 48 percent of the total volume. Research shows that consumers increasingly buy products online that are either unavailable or too expensive in their home country. The biggest share of these cross-border purchases will revert back to U.S. e-commerce businesses, among other reasons because consumers covet products tagged with the "Made in the U.S." label. DHL is looking to benefit from these developments and increase its e-commerce footprint in the United States.
The planned expenditure of $137 million until the end of 2020 will be used for the further expansion of fulfillment capabilities by adding eight distribution centers and enhancing two existing facilities in Los Angeles and Columbus, Ohio. The new investment will also expand day definite deliveries and enhancements to support domestic and international services. "We provide the most comprehensive e-commerce platform for international trading ventures, thanks to our different divisions' expertise along the entire supply chain, whether it is warehousing or transportation. For consumers shopping abroad, and also for businesses, it is of utmost importance that international deliveries are reliable, safe and convenient. We provide that with our network every day in every way," Brewer continues.
Expansion of international e-commerce related logistics
As an arm of the division Post - eCommerce - Parcel, expanding businesses' international footprint with e-commerce related logistics is at the core of DHL eCommerce. In North America, the company operates 20 distribution centers, including four international gateways and one center each in Toronto and Mexico City. Further facilities in Latin America are to follow next year. In the U.S., DHL eCommerce operates 18 distribution centers and is one of the largest partners of domestic provider USPS. It is thus able to dive deep into the USPS mail stream to maximize pre-sorting discounts and achieve speed-to-market.
Internationally renowned German soccer club FC Bayern Munich welcomes DHL's increased U.S. e-commerce capabilities due to the new investments. During the team's summer tour through New York City, Charlotte and Chicago the Bavarian club confirmed that they want to further increase their fan base in the U.S., and to provide their followers with their latest merchandise items, such as the new jersey and other club related articles. Only last year FC Bayern Munich launched their Asian online shop together with its Official Logistics partner DHL.
Posted at 21:29 パーマリンク
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