Release Date:
Release ID: 5119

DHL enhances LCL offerings from China to Germany

Two newly launched direct services enhance speed and benefit Chinese businesses trading with Germany

Singapore, 26 January 2011 – DHL, the world’s leading Logistics company, today announced the launch of its new direct Less than Container Load[1] (LCL) services connecting Dalian and Shanghai, China to Hamburg, Germany.

Dalian and Shanghai are two major ports along the Chinese coast and both are ranked the world’s ten largest ports[2]. In the past year, Shanghai Port handled 29.07 million TEU[3] while Dalian port handled 5.24 million TEU[4], an increase of 16.3% and 15% respectively. The two newly launched direct LCL services will provide Chinese exporters a faster and more competitive ocean freight option for shipments through the two Chinese ports to Hamburg, largest port of Germany.

Kelvin Leung, CEO, North Asia Pacific, DHL Global Forwarding, said, “In the highly competitive business landscape, companies are increasingly faced with the challenge of responding more quickly to customer demands. The introduction of these new services provides customers with enhanced LCL offering in the fast-growing North Asia Pacific - Europe market and support the healthy trade between China and Germany.”

Germany is China’s largest trade partner in the European Union and vice versa. Bilateral trade volume between the two countries totaled 128.56 billion USD in 2009. China has become first largest import partner of Germany and the eighth largest export partner.[5] The launch of the new services will further boost the trading activities between Chinese and German businesses, especially small and medium enterprises and industry sectors including automotive, consumer products, electronics and textile will benefit from this new service.

“Bringing these new direct LCL services from China enables us to provide more options for businesses in China to deliver their products to Germany and in the meantime, strengthen our overall capacity of LCL services. It will also help further enhance the competitiveness of Shanghai and Dalian ports in the international shipping market,” said Steve Huang, CEO, DHL Global Forwarding China.

Operated by Danmar Lines, DHL’s in-house carrier, these new direct LCL services will enable shipments to arrive early and ultimately lead to reduction of CO2 emissions. The new direct twice-a-week service from Shanghai to Hamburg will offer increased options to satisfy client demand, while exporters using DHL’s new direct LCL services from Dalian to Hamburg will see their shipments’ transit time reduced by 6 days. Shipments arriving in Hamburg can then be further delivered to an additional 7 destinations in Germany including Frankfurt, Munich and Stuttgart through DHL’s inland network.

“Shortened transit times not only offer higher efficiency from a business perspective, but also improve carbon efficiency by 5.7% for the Dalian-Hamburg service, contributing to a greener environment,” said Marc Meier, Senior Vice President, Ocean Freight & Head of Global LCL, DHL Global Forwarding. “Our goal is to serve all major markets with direct consolidations.”

DHL currently operates the world’s largest LCL network with close to 2,000,000 cubic meters of LCL freight handled annually via 45,000 point-pairs. As a global leader in LCL, DHL carries more than 97% of its total volumes in house. The in-house systems and strong global network enables the control of cargo flow, information flow, speed, accuracy, cost efficiency and reliability. Going beyond port to port, DHL LCL service also offers a complete end-to-end supply chain management that includes pick-up at origin, consolidation and deconsolidation, delivery at destination and customs clearance. All LCL services are accompanied by DHL’s first-class IT solutions such as DHL Track & Trace and other tools to allow full visibility throughout the whole supply chain.

[1] LCL services refer to smaller amounts of ocean freight cargo that are insufficient to fill a Full Container Load (FCL). The service is widely used by customers across many industries as it offers the flexibility of shipping smaller quantities in a timely manner.

[2] Source: 2009 China Shipping Development Report, Ministry of Transport

[3] Source: Shanghai International Port (Group) Co., Ltd 2010 performance report

[4] Source: Dalian Port 2010 performance report

[5] Source: 2009 Trade Flow between China and Germany Report, Ministry of Commerce, People's Republic of China
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