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DHL invests more than $300 million in booming e-commerce business

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DHL invests more than $300 million in booming e-commerce business. Image: DHL
DHL invests more than $300 million in booming e-commerce business. Image: DHL
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DHL eCommerce Solutions, a division of the world’s leading logistics company, Deutsche Post DHL Group, announced it is investing more than $300 million in the U.S. in the next five years. The investment will expand its footprint in the U.S. by adding 70% more square footage across its network. Additionally, the company will add automation in all of its U.S. distribution center facilities and upgrade its IT operating system platform.

As a result of ongoing international e-commerce growth, DHL eCommerce Solutions is also investing in dedicated export gateways for international shipments in Carteret, New Jersey; Franklin Park, Illinois and Whittier, California.

“As our network grows and we become more efficient through automation, our customers will benefit by getting their goods quicker to their eager consumers,” said Lee Spratt, CEO, DHL eCommerce Solutions, Americas. “We are investing long-term because we believe consumers will continue to buy more online, and we will see additional online shops popping up, so we want to be prepared to meet this future demand.”

Midwest export gateway location

The company’s Franklin Park 69,000 sq. ft. international export gateway opened on July 17, 2021, and includes a TSA screening area. The company will continue processing domestic parcel shipments from its second Illinois location in Melrose Park.

West Coast export gateway location

DHL eCommerce Solutions’ Whittier distribution center opened at the end of 2020 and expanded in August 2021. The Whittier location extended by 100,000 sq. ft. directly next door to its current location, where international parcels and packages are being processed.

Northeast export gateway location

The international export gateway in Carteret will open in September 2021. The new permanent 50,000 sq. ft. building will include a TSA cargo screening area. DHL eCommerce Solutions opened its first fully automated distribution center in Avenel, New Jersey in November 2018 and will continue to process domestic shipments from this location.

DHL eCommerce Solutions currently has 19 distribution centers and three corporate offices in the United States with approximately 4,200 employees. The division is focused 100 percent on servicing B2C online merchants, shipping lightweight packages and parcels domestically and internationally.

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Freight Forwarding

Yusen Logistics partners with Toyota Motor to accelerate decarbonization

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Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
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Following on from last week’s press release Toyota to decarbonise its logistics activities in Europe, Yusen Logistics Europe partners with Toyota Motor Europe in this proactive approach to alternative powertrain development.

Together with VDL Special Vehicles, Yusen Logistics is honored to be part of the team to help accelerate the decarbonization of Toyota’s logistics network with the use of hydrogen fuel cell trucks. Using Toyota’s fuel cell modules VDL will convert an existing vehicle into a zero-emission truck for Yusen Logistics to operate within Toyota Motor Europe’s logistics network.

The innovative technology project is a significant step towards reducing both companies’ overall carbon footprint and aligns with Yusen Logistics’ wider commitment to working together with our partners and communities towards a more sustainable future.

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cargo-partner becomes part of Nippon Express Group

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cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
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As cargo-partner is celebrating its 40th anniversary, company owner and founder Stefan Krauter has decided to sell the Austrian global logistics player to Japanese stock-listed Nippon Express Holdings, which is also the parent company of Nippon Express, APC, Franco Vago and others. Having started operations in 1983 with only five employees at Vienna Airport and having developed the company almost completely organically to now 4,000 employees in 40 countries around the globe, Stefan Krauter had already passed on the baton to his management and now has also passed over ownership to his “ideal successor” NX.

After exceeding the billion euro mark in global turnover for the first time in 2020, cargo-partner’s turnover increased by 72%, reaching over 1.8 billion euro in 2021, and further increased to 2.06 billion euro in 2022.

“Leadership by agile founders bears some considerable advantages, but from a certain stage on, highly professional and long-term stable ownership is the bigger asset. It is the founders’ challenge and responsibility to decide about both management and ownership succession at the right time. Not too early to be able to build a stable internal management succession but, for sure, also not too late,” Krauter says. “That is why, together with the Corporate Executive Board, we started evaluating different options for the future of cargo-partner.”

Stefan Krauter continues to explain: “It would also have been a good option for the management and employees to continue going completely alone, but since the ideal new strategic owner was found in NX Group, we were ultimately convinced that this was the right way to go forward. Following the integration policy we have seen from NX Group so far, cargo-partner will remain cargo-partner in regard to both organization and branding – and it will become the strongest cargo-partner ever!”

The deal was signed on May 12, 2023 and will come into effect subject to the usual regulatory (anti-trust and FDI) approvals in an estimated four to seven months along with the subsequent closing.

“Both organizations will benefit from considerable synergies in global office coverage, an expanded service portfolio, strengthened regional, product and IT know-how, increased scale and others. NX Group will benefit from our strong and extensive network in Central and Eastern Europe that complements NX’s existing network in an ideal way, and cargo-partner will jump several leagues in the Intra-Asian and Trans-Pacific trade lanes,” Stefan Krauter states. He adds: “cargo-partner will also continue to work with its current global agents’ network, strive to expand this section of its business and support it in future with its upgraded platform which is presently under development.”

“I will personally continue to support the transition in my new role on the Corporate Supervisory Board and in my advisory function to the Corporate Executive Board. I will be focusing on smart partial integration with the new owners as well as on other matters regarding strategy, M&A and ESG. What an interesting and rewarding challenge at the end of my career!” Krauter says.

The sellers have been advised by J.P. Morgan (financial), ValueAdd (financial), BCG (commercial), Schönherr (legal), and Deloitte (accounting and tax) on the transaction.

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DHL Freight introduces a new sustainable intermodal rail freight solution

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DHL Freight introduces a new sustainable intermodal rail freight solution. Image: DHL
DHL Freight introduces a new sustainable intermodal rail freight solution. Image: DHL
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DHL Freight, one of Europe’s leading providers of road freight services, is introducing a new, sustainable intermodal rail freight solution between Germany and Denmark. The freight trains will depart from the Ziel Terminal GmbH in Duisburg every Monday, Wednesday, and Friday. In Denmark, departures from Padborg will occur every Tuesday, Thursday, and Sunday from the combined transport terminal. The rail transport takes about 12 hours and is available to customers with full-truckload shipments. Of course, DHL Freight also offers an end-to-end solution including pick-up and delivery.

Operator of the rail connection is the rail logistics company TX Logistik, which maintains an efficient European network with connections in eleven countries. As part of Mercitalia Logistics, TX Logistik is responsible for the development of the group’s international activities. Being able to strengthen the network with a renowned customer like DHL is therefore an important step for the company on this path.

“We are introducing this new train connection exclusively for our customers. In line with our sustainability strategy of net-zero emission logistics by 2050 and the growing demand from our customers for green transport solutions, a modal shift from road to rail on certain relations is a powerful lever to save CO2 emission. We expect this new rail service alone to save up to 11,500t CO2 emissions per year. A perfect complement to our recently introduced GoGreen Plus service,” states Uwe Brinks, CEO DHL Freight.

This solution is another milestone in shifting DHL Freight’s road business to the rails and benefits the route from Denmark to BeNeLux countries and Germany, offering smoother logistics, lower emissions, and increased freight reliability. As part of its sustainability roadmap and in line with Deutsche Post DHL Group’s sustainability goals DHL Freight plans to further increase the use of rail connections and intermodal solutions. Today, DHL Freight already transports freight on more than 3,900 trains on various trade lanes in Europe in cooperation with different rail carriers. In Germany alone, DHL Freight moves more than 970 trailers per week by rail in heavy-load transport.

Reducing emissions through rail transport

The new connection will considerably relieve road traffic thanks to the intensified use of rail networks. Up to 240 truckloads per week can be fulfilled via rail transport. As rail transportation is a less carbon-intensive logistical option, this leads to considerable CO2 savings. For each truck shifted, 1.05 tons of CO2 are saved, up to 250 tons per week and as much as 11,500 tons per year. In combination with DHL Freight’s GoGreen Plus service for pick and delivery customers get the opportunity to reduce the emission for their land transport significantly.

Deutsche Post DHL Group is constantly pursuing its goal of reducing all logistics-related emissions to net zero by 2050. The new train connection is expected to be another effective element in achieving this important goal and represents a firm step forward in their sustainability strategy.

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