DHL assures freight capacity support in Asia-Pacific as volumes climb

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logistics07Freight specialist DHL Global Forwarding said it will provide long-term freight management support in Asia-Pacific to help customers deal with rising rates and capacity cuts as shipping volumes grow.

The Deutsche Post DHL subsidiary said it will secure freight capacities in the region to ensure reliable service as it sees Asia-Pacific trade growing as the global economy recovers.

“DHL Global Forwarding is responding to global trade growth with freight capacity initiatives designed to support customers in a challenging market environment. These include securing sufficient long-term capacity on some of the world’s busiest trade lanes, such as to and from Asia-Pacific, where carrier rates are climbing as a result of shortfalls in freight capacity,” a company statement said.

Roger Crook, CEO of DHL Global Forwarding, Freight, said, “As global trade picks up—fueled by spiking demands in technology—DHL is seeing customer volumes increase on many trade lanes, especially in Asia-Pacific. In this scenario, where capacity is tightening and demand is rising, upward pressure on prices is virtually unavoidable. DHL’s capacity program is targeted to meet customers’ crucial shipping needs across all industry sectors against the backdrop of rising demand.”

The company said global exports are on the increase, citing IHS data that show exports are up 4.4 percent in the third quarter of 2014 compared to 2013.

“Asia-Pacific is showing the most marked trade improvement compared to other regions. Trade activity among Asia’s emerging markets rebounded from low growth in the first quarter of 2014 and has been on an upward trend ever since,” it continued.

In the region, airfreight carriers are registering a 7.1 percent rise in freight-tonne-kilometer in July 2014 compared to 2013, it further stated. In China, market demand is picking up, yet the capacity supply remains tight. HSBC’s Manufacturing PMI2 shows that this sector in China, India, Korea and Taiwan expanded in August, with Taiwan signaling the strongest improvement since April 2011.