DHL Express expects 50 percent more inbound volume

by Inside Logistics Online Staff

PLANTATION, Florida  – DHL Express is expecting a nearly 50 percent increase in inbound volume to the Americas over last year’s holiday season.

This volume growth, which is mostly due to the rise in e-commerce, is concentrated in the U.S., which accounts for more than 70 percent of the total inbound volume in the region and projects more than 50 percent growth.

The peak season, which is defined as the period between Black Friday and Christmas, is also expected to generate more than 20 percent more outbound volume in the region. In the U.S. alone, the outbound volume growth is expected to be at almost 30 percent.

“International trade has played an essential role for both businesses and individuals shopping online during this pandemic,” said Mike Parra, CEO for DHL Express Americas. “The value of global e-commerce has been reinforced, and we expect the resulting behavioral changes to continue driving an accelerated growth in global e-commerce.”

The global pandemic caused by the novel coronavirus accelerated the growth of e-commerce when entire countries went under quarantine and shoppers were left with online shopping as the only means to receive both personal and business supplies.

Capacity expansion

With holiday season-like numbers since June, DHL Express has been investing to meet higher demand.

“Higher shipping volumes for DHL Express have resulted in increased investments in our people, our facilities and our network,” Parra said.

Earlier this year, the company added several new flights. Hong Kong-Los Angeles-Miami five times per week added approximately 45 tons of capacity per flight, and another from DHL Express’ Americas Hub at the Cincinnati/Northern Kentucky International Airport (CVG) to Singapore added 55 tons per day of capacity for shipments.

DHL Express has also invested about US$20 million in several projects throughout the U.S. to expand service centres, hubs and gateways and bring additional equipment to process higher volumes. Some of these include adding about 80,000 sq. ft. of additional warehouse space in Ohio, Pennsylvania and New York.

The gateways at the Los Angeles International Airport, CVG and New York’s John F. Kennedy International Airport also received a combined investment of $3.7 million for ground support equipment.