Release Date:
Release ID: 5034

DHL enhances LCL connectivity from China to the U.S.

· Direct LCL service from Shanghai to Atlanta reduces transit time by seven days

Singapore, 7 December 2010: DHL, the world’s leading logistics company, today announced the launch of its direct Less than Container Load (LCL) service from Shanghai to Atlanta, enhancing its connectivity between China and the U.S., the world’s two largest economies. The introduction of this weekly direct service reduces transit times by at least 7 days compared to current services.

Kelvin Leung, CEO, North Asia Pacific, DHL Global Forwarding, said, “China and U.S. are vital trade lanes for global businesses, with exports from China totaling over US$296 billion in 2009. This year alone, we have launched five other LCL services from Shanghai which demonstrates our strong support for the Shanghai government's long term goal to develop the city into a global shipping center. With the launch of this new direct LCL service, we will help businesses in China extend their footprint into the American markets via our unparalleled global LCL network.”

Currently, LCL freight bound for Atlanta from Shanghai is shipped by sea to Los Angeles where it will be unloaded from the consolidation container. In Los Angeles, it will be combined with other freight that has reached the US west coast seaport for its onward journey to Atlanta. DHL’s new direct service from Shanghai bypasses the re-handling in Los Angeles and the consolidation containers are instead transferred directly to the railway station, thereby reducing transit time to 21 days.

The shortened transit time not only offers higher efficiency and reduces the risk of damage, loss and other contingencies, but also increases carbon efficiency by 16.73% and contributes to a greener environment. Shipments arriving in Atlanta will also be further delivered to several major U.S. cities including Charlotte, Dallas, Memphis, Miami, Nashville and Orlando through DHL’s inland network.

Operated by Danmar Lines, DHL Global Forwarding’s in-house carrier, the new weekly direct LCL service will serve to bolster the significant trade volumes with US – China’s second largest trading partner. Currently, China is the United States’ 2nd largest trading partner for the first eight months of 2010, with trade amounting to US$285 billion, an increase of 21% from 2009.

Steve Huang, CEO, DHL Global Forwarding, China, said, “Today’s launch of our new direct LCL service reflects our continued confidence in China and commitment to customers, especially the small and medium enterprises which are increasingly turning to ocean freight for greater cost efficiencies. This growing trend is reflected by the fact that in the past three quarters, Shanghai Port handled 21.6 million TEU, surpassing Singapore to become the world’s busiest port in terms of container throughput.”

Clas Thorell, Head of LCL Management Asia Pacific, DHL Global Forwarding, said, “As businesses continue to face increasing cost pressures, our direct LCL service will enhance our customers’ competitive edge in the fast-changing global business environment. With 440 weekly point pairs of LCL services currently operating from China to the U.S., the Shanghai-Atlanta direct LCL service will further enhance our connectivity within the extensive global network and reinforce our market-leading position.”

DHL operates the world’s largest LCL network with close to 2,000,000 cubic meters of LCL freight handled annually.
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