DHL to secure capacity between North Asia and Europe; sees continued airfreight capacity constraints

DHL Global Forwarding stated (16-Dec-2009) it is securing additional capacity from commercial carriers to avoid capacity constraints between North Asia and Europe throughout 1Q2010. The company stated that, in Nov-2009 and Dec-2009, the global airfreight industry faced a "strong increase in demand for transportation space", which contributed to backlogs of goods shipped from China to Europe and resulted in "steep increases" in freight rates. The company stated that it "appears that transportation capacity constraints will continue as a number of airlines are reluctant to increase cargo uplift capacity, which was reduced due to the global economic downturn". The freight company stated that the reason behind this is the high cost of reactivating the temporarily grounded aircraft. [more]

DHL Global Forwarding: "While the demand for air freight space traditionally decreases after the year-end holiday causing freight rates to drop significantly, the current capacity outlook and latest customer forecasts for the first quarter of 2010 indicate a continuation of airfreight capacity constraints on the North Asia to Europe trade lanes. Airfreight out of China, Hong Kong, Korea and Taiwan is in particularly high demand, with the next peak expected to occur before the Chinese New Year in February, anticipating the factory closures during the holidays," Company Statement, 16-Dec-2009.

DHL Global Forwarding: "In order to mitigate the shortage of space we will be securing extra capacity from commercial carriers on our trade lanes between North Asia and Europe throughout the first quarter of 2010. We are working very closely with our customers on capacity planning to ensure their supply chains are stable and our delivery times are fast," Thomas Nieszner, CEO Europe/CEE. Source: Company Statement, 16-Dec-2009.