DHL Express on Wednesday to expand its air network and reduce delivery times with new investments in Europe and South America.
The parcel and logistics giant announced the opening of a $105. 7 million gateway at Munich Airport, which will be seven times larger than the existing facilities it leases at the cargo hub, and for the first time has begun direct shipping service between the U. S. and Canada. The U. S. and Brazil have bilateral industry development between countries.
The Munich Airport warehouse will cover more than 118,000 square feet and will have direct access to aircraft parked on the ramp. Two pickup and drop-off wings will have room for 65 cars at a time, reducing wait times and allowing for faster package delivery in the Bavarian region. The construction will also feature the latest energy- and emissions-saving technologies, adding solar panels to force appliances and computers, and 32 charging stations for electric cars in the truck area, DHL said.
Gateways are smaller airports that force hubs. The new facility will have room for two planes, according to a depiction by an artist.
DHL leases the land to the Munich airport operator and will be responsible for the structure of the facility, which is expected to open by the end of 2024. Once completed, the new shipping warehouse will employ more than 140 people, double the airport’s current staff. .
“Our former processing domain remains accelerated with the expansion of import and export volumes, given the existing trends of digitalization and globalization,” said Markus Reckling, managing director of DHL Express Germany, in a press release.
The new facility will serve as a floor terminal for regional deliveries in Germany and as a gateway for foreign air. Recently, a flight connects Munich with DHL’s foreign hub in Leipzig. Other connections come with East Midlands Airport in the UK 4 times a week and Malpensa International. Airport in Italy once a week.
DHL also announced the launch for the first time of drop shipping flights from its expanded Miami center to Sao Paulo. The new route, which will return to Bogota, Colombia, is operated by Canadian contractor Cargojet six times a week with a Boeing 767 freighter.
DHL said the flight, which adds around 310 tonnes of weekly shipping capacity in all directions, will improve transit time and reliability throughout the year as it will no longer rely on partner airlines to provide air travel.
Cargojet committed more than a dozen aircraft to DHL, as well as crews and maintenance, as part of a long-term strategic components partnership that recently secured DHL the right to acquire up to 9. 5% of the airline’s shares.
“Over the past few years, we have witnessed unprecedented shipping demand from our consumers in the Americas, whether in the B2C and B2B segments,” said Mike Parra, CEO of DHL Express Americas. “This network upgrade in the U. S. industry. The U. S. and Brazilian direction represents a great opportunity for importers and exporters to expand their global businesses while enjoying unparalleled degrees of speed in key markets in the Americas region. “
Freight forwarder DSV recently initiated weekly flights from Huntsville, Alabama, to Brazil, through a lease agreement with LATAM Airlines, for similar reasons.
Trade between the U. S. The U. S. -Brazil economy reached $78 billion last year, up from $58 billion in 2020 when the COVID-19 crisis wiped out the global economy, and $74 billion in 2019, according to U. S. Census Bureau figures. U. S. it exports more to Brazil than it imports through value. Agricultural, automotive, generation and chemical exports are among the U. S. exports sought in Latin America, according to industry experts.
The new service to Brazil is part of DHL Express’ broader expansion plan in the Americas, which includes more than $360 million in investments from 2020 to 2022 to meet growing demand for cross-border freight transportation and e-commerce execution.
The incorporated logistics company is expected to open a giant ramp and sorting facility at Atlanta’s Hartsfield-Jackson International Airport in the third quarter to serve more flights from Europe and Asia.
DHL Express brought several new routes to the U. S. In 2022, adding between Vietnam and Japan with giant 777 shipping aircraft. Last year, he flew to Chile six times a week.
Last fall, DHL Express opened an expanded foreign parcel centre at Paris-Charles de Gaulle Airport. The $200 million is 10 times larger than the original facility. In September 2020, the company remodeled the Milan, Italy, gateway into a regional hub for $123 million The carrier in particular also tripled the length of the parcel hub at South Korea’s Incheon International Airport this summer and plans to complete a major expansion of its Hong Kong hub in the fourth quarter.
The solid profits of parent company Deutsche Post (OTCUS: DPSGY) enable DHL to make significant capital investments. In the first quarter, earnings before interest and taxes rose from $2 billion to more than $2. 3 billion. $23. 8 billion.
Click here for more FreightWaves/American Shipper through Eric Kulisch.
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