DHL Express expands capacity to its Asia Pacific air network as demand surges

Written by DHL

New K-Mile Asia flight will add over 200 tons of capacity weekly between Hong Kong and Bangkok
Air Hong Kong will offer over 1,200 tons of weekly total gross payload for both flights: Hong Kong-Beijing and Hong Kong-Cebu-Manila
AeroLogic will add 610 tons of capacity with its six-times-a-week service from Hong Kong to Cincinnati

SINGAPORE - Media OutReach ^[1] - 10 November 2021 -DHL Express, the world's leading international express service provider, has expanded its airfreight capacity to cater to rising intra-Asia demand and between Asia Pacific and the U.S. With over 2,000 tons in total capacity every week, the additional flight routes allow DHL Express to increase delivery speed amidst surging shipment volume in Asia Pacific.

Following the recent introduction of a newly converted B737-800 freighter ^[2] that connects Hanoi, Hong Kong and Bangkok, a B737-400SF operated by K-Mile Asia that flies six times a week between Hong Kong and Bangkok, has been added. Furthermore, Air Hong Kong has added a sixth flight rotation to the two existing routes powered by the A300-600: Beijing-Hong Kong-Beijing, and Hong Kong-Cebu-Manila-Hong Kong.

To cater to the intercontinental cargo demand, an aircraft, operated by AeroLogic, the joint venture cargo airline of DHL Express and Lufthansa Cargo, will fly six times a week from DHL Express' Central Asia Hub in Hong Kong to Cincinnati Hub in the U.S. This B777F aircraft is part of a recent delivery of the original order of 14 aircraft made in 2018 ^[3].

"DHL Express remains committed to support our customers in growing their global footprint and entering new markets. We are investing close to EUR 750 million ^[4] in our ground infrastructure and air network in Asia Pacific to ensure we respond nimbly to changing market needs. As economies recover from the global pandemic and income levels rise, we expect intra-Asia market to grow substantially, with a corresponding increase in demand for express logistics services propelled by the thriving e-commerce sector," said Ken Lee, CEO, DHL Express Asia Pacific.

E-commerce shipments continue to drive air capacity demand

The pandemic and pandemic-related restrictions have further accelerated online sales growth, with Asia Pacific leading the charge. In 2020, e-commerce comprised half of the retail sales in Asia Pacific, and is expected to grow by 10 percent to 61 percent in 2025 ^[5].

This growth can be attributed in part to social e-commerce – the business of selling goods online through people's social networks – particularly in China and emerging countries in Southeast Asia such as the Philippines ^[6]. The e-commerce sector in the Philippines has seen a surge in the midst of the pandemic ^[7], contributing 3.4%, or US$12 billion, to the country's GDP in 2020, with the goal to increase e-commerce revenue to US$24 billion, or 5.5% of GDP, by 2022.

"To ensure we are ready to cater to the anticipated surge in demand during peak seasons, we consistently enhance our fleet and adjust our air network to provide our customers with the most efficient, time-definite international deliveries. Despite continued capacity crunch in the global supply chain, DHL Express' dedicated freighters and strong network of partner airlines can continue to help companies stay resilient and responsive to their business needs," said Sean Wall, Executive Vice President, Network Operations & Aviation, DHL Express Asia Pacific.

DHL Express' Asia Pacific air network operates on a multi-hub strategy, supported by four main hubs – Central Asia Hub in Hong Kong, North Asia Hub in Shanghai, South Asia Hub in Singapore and Bangkok Hub, linking to 50 DHL Express gateways in the region. DHL Express operates over 280 dedicated aircraft with 15 partner airlines on over 2,200 daily flights across more than 220 countries and territories.

Note to editor:

In November 2020, DHL Express announced that it will spend close to EUR 750 million to enhance its ground infrastructure and air network. This is followed by three announcements made in April, May and August 2021:

- DHL Express adds airfreight capacity to its Asia Pacific network^[8]

- DHL Express dedicates flights to Ho Chi Minh City and Penang amidst demand surge^[9]

- DHL Express bolsters intra-Asia airfreight capacity ^[10]

You may also wish to take a look at this article in our content hub, Logistics of Things, that summarizes the growth potential for intra-Asia e-commerce sector: Intra-Asia e-commerce growth potential: A silver lining for Covid-hit region. ^[11]