DHL Express has ramped up its investments in transportation and shipment handling capacity in anticipation of increased demand for express services during the traditional end-of-year peak season.
DHL Express is investing over EUR 100 million (US$112 million) in transport and handling capacity in the fourth quarter to support the anticipated year-end demand surge and additional e-commerce volume.
As part of the ongoing modernization of its airfreight fleet, DHL Express said it will deploy eight new Boeing 777 freighters.
"With an expected growth of 8.8% in 2024, worldwide e-commerce remains a driving force for volume growth while B2B shipment volume is gradually recovering," DHL said in the announcement.
Despite ongoing uncertainties in the overall global economy, the company noted that it is adding aviation capacity and expanding its international parcel sorting and delivery network to ensure a successful peak for customers.
"DHL Express is committed to remaining the partner of choice during the busy end-of-year peak season, which is often the most commercially important and operationally challenging time for many of our customers," said John Pearson, CEO at DHL Express.
"Our flexible international network combines high-quality service and reliable access to capacity, which allows businesses to react in real-time to changes in consumer demand, supplemented by digital tools that help them to improve the customer experience and optimize pick-up and final mile delivery."
"With ongoing volatility in global freight markets and a continued strong flow of e-commerce volumes, we are expecting a healthy surge in demand for express services in the fourth quarter. We are making the necessary investments to maximize the resilience of our global network and make our customers successful during a demanding 2024 peak," Pearson added.
Investment in aviation capacity
DHL said its investment in its aviation capacity in the fourth quarter of 2024 includes the introduction of additional large and medium wide-body aircraft and supplementary flights with existing aircraft, particularly on intercontinental routes.
"The company expects a high-level volume increase, particularly on the China outbound lane to the rest of the world, during the upcoming peak season," the logistics giant added.
With this, the company said it is investing in eight new Boeing 777 freight aircraft on trans-Pacific and intercontinental routes between Asia and Europe, boosting capacity on these key lanes.
DHL is also continuing its transition to lower-emission transportation with newer, more fuel-efficient aircraft.
The company said it has also invested in additional handling and sorting capacity in its ground network, including in its aviation facilities in Copenhagen, Cologne, Paris, Atlanta, Brussels and East Midlands (UK), to allow for more flexible flying schedules and the ability to reroute cargo in the event of heavy demand or supply chain disruption.
Alongside these capacity investments, DHL Express said it remains focused on its longer-term commitment to providing emission-reduced delivery services.
E-commerce remains a growth driver
"Next to a continued gradual B2B shipment volume recovery, DHL Express expects e-commerce to remain a driving force behind the increase in volumes on intercontinental lanes between Asia Pacific, Europe, and the Americas," the express delivery company said.
Although the numbers have realigned with pre-pandemic forecasts, DHL noted that worldwide e-commerce sales are expected to grow by 8.8% in 2024 and continue to grow as a share of total retail sales.
"E-commerce continues to be a vital and growing sector of the global economy. Current challenges like geopolitical tensions and trade barriers have led to the need for reorganizing supply chains, but they have not restricted the sector's inherent dynamism," it said.
