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Ocean cargo/global logistics: DHL launches new LCL service during down cycle

Patrick Burnson, Executive Editor -- Logistics Management, 7/8/2009

BANGKOK—DHL has announced the launch of its guaranteed weekly LCL services connecting Bangkok to Los Angeles; Hamburg; Germany and Tokyo, further validating that shippers and intermediaries are showing more reliance on Less than Container Load (LCL) transportation services this season.Through Danmar Lines, DHL’s in-house carrier, the new weekly direct LCL services enables shipments to arrive up to a week earlier.

According to spokesmen, the launch of the new service taps into the key trade lanes for businesses in Thailand.  The U.S. is Thailand’s largest export market, with revenue for 2008 totaling over $20.2 billion; followed closely by Japan, which generated $20 billion; while Germany generated $3.2 billion in export revenue. In 2008, computers with accessories and parts were the top exports to U.S. and Germany from Thailand, while the top exports to Japan were electronic integrated circuits, followed by computers and accessories.

Jon Monroe, president of Monroe Consulting in Shanghai, noted that Thailand is also becoming a larger trading partner with China now, and may need to ship as many full containers in the transpacific as a consequence.

“Loads are being consolidated in a down economy, “he said. “And DHL is among the players taking advantage of that trend.”

DHL’s launch of new direct services in Thailand is part of its on-going enhancements of LCL service capabilities. Since the start of this year, DHL has launched ten other direct calls from China, Japan and India to meet increasing demand for the services.

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