DHL connects five major Asian countries via Road

DHL’s united road freight network between Asian countries will be profitable for future economic initiatives to stimulate trade.

DHL Global Forwarding is providing  air, sea and road freight services in Europe and Asia. DHL has turned out  a united road freight network that connects five Asian cities that are Singapore, Penang, Bangkok, Hanoi and Shenzhen. This road freight service between five cities of Asia hits the speed of road freight growth in Asia, which is estimated at an expected compound annual growth rate of 8.3 percent from 2014-2019 and anticipated to move the sector to a value of US$822 billion  by the end of 2019.

Road freight service is more rapid than other modes of transportation 

Road freight is a good alternative then other shipping methods. Road freight service is  providing a more profitable alternative than air and sea freight. Moreover, the shipping  time for sea freight between Shenzhen and Bangkok takes thirteen days while the road freight service  only takes five days. The road freight service takes less time as compared to sea freight and it is less expensive than sea and air freight. There are regular departures from five cities and an example of the transportation time is as, shipping time from Singapore to Penang is one day, Bangkok to Hanoi is three days, Shenzhen to Hanoi two days, Shenzhen to Bangkok five days and from Penang to Shenzhen six days. According to CEO, DHL Asia Kelvin Leung that the company is confident that the trade in Asia Pacific region will continue to increase and the road freight network is also ready to help in the expansion of trade.   

DHL’s integrated road freight network will be profitable and trade stimulating

DHL’s road freight service is a profitable service and also helpful in stimulating the economy.

This  road freight network will be useful for coming financial initiatives supporting trade, having laid the foundation that already connects crucial Asian markets. For example, the ASEAN Economic Community (AEC) aims to build a single ASEAN market. The plan covers cross-border collaboration in many areas comprising capacity building, improved groundwork and communication connectivity, and the improvement of electronic dealings. For good results, AEC will direct a prosperous ASEAN region among the free movement of imports, services and investment. According to CEO, DHL Global Forwarding ASEAN and South Asia Thomas Tieber, that Thailand has a striking chance to make itself as a strong logistic hub in ASEAN.  

Air Bridge Cargo and the Russian market

The air bridge cargo services are facing a newfound pressure with CIS region stressing and pressuring the business. 

A spokesman for the Air bridge cargo service speaking at a conference stated that aside from the challenging market situation there are opportunities and possibilities that can be considered in Russia.

His statement has thus led air bridge cargo services to think further regarding the services they are offering to the Russian market. The pressure is now on as it is believed that the Russian market can increase growth rate and become a solid and steady investor for the industry. Despite the falls there are solid possibility’s and the business is being stressed to do something more. 

The air bridge cargo services currently use three aircrafts for freighter services, the aircraft b737 as well as fifteen Boeing 747 models. The aim of using these carriers is to link the airports around the country and reach a larger scale with efficiency and whilst maximizing the beneifts.

The spokesman Oleg Makushkin also spoke about the fall that was seen in the imports sector of Russia and compared it to the previous year stating a 35 per cent fall.  CIS when compared showed a fall of 25 per cent signifying that action should be taken to increase these rates once again.

The financial aspect of these services seemed to waver and become unstable with a decrease reported. The local currency also fell and limits were changed by the banks and these added to the instability that the market was already facing.

 At present, the market is in a pitiful situation and professionals, specialists and workers are in agreement that the Russian market is falling and decreasing with little sign of improvement. These serious reports put serious pressure on the industry.

On a more positive note a small growth is expected in profits over the next 20 years and is specifically predicted for the CIS area. If steps and necessary evaluation and adaptations take place the market can be improved from the state it is currently in although how significantly it can be improved is unclear at this moment.

Panama Canal Almost Kills Air Freight Industry in the Region

Panama Canal growth flooded the air industry and shifted cargo from air to sea

Air cargo industry in Panama is facing some serious falls in demand of cargo and the Panama Canal stands responsible for this fall in demand. The air cargo industry said that the Panama Canal has pushed the cargo on sea routes from air cargo in the region. It is not the end of this story yet, experts said that this trend is expected to continue as the transportation route is expanded.

What Operators said?

At the air and sea cargo conference in Miami, the cargo director of Copa Air has said that the number of ships passes through the canal route had increased over last few years and left a knock on effect on them (the air cargo industry). 

What else he said?

He further said that the panama route has more and more activity on the sea cargo side, sine in the air freight sector, there is more and more decrease and freight being shipped by sea.

There are more ships coming to panama ports and more frequently collecting the cargo while cargo flights are decreasing with every passing day. 

What is the future?

According to the experts, it is worse and will be even worse by next year, when the number of containers will be increased after the expansion project will be completed. The canal then will be able to allow larger vessels to pass through it. 

One of the experts said that the activity on the Panama Canal is increasing and will continue to grow as it is expected and trends are showing.

DHL expects something else

The chief executive of DHL global forwarding, said that the shippers had been stop using the west coast ports of USA after the industrial action of preceding year which will be very beneficial for the air industry and the truckers. Both parties can get benefits by this action.

He further explained the situation by referring to the trade barriers which had increased in recent years in Latin America and other areas of the continent. He said that, these factors are affecting the air cargo industry very badly and shifting the cargo on sea routes.