DHL Has No Plans To Cut Air Cargo Capacity - Executive

New York: DHL Express, Asia's largest cargo delivery company, isn't seeing signs of a slowdown in the region despite recent warnings from rivals about poor business conditions.
Larry Rosen, chief financial officer of DHL parent Deutsche Post AG (DPW.XE) executive said Tuesday that the freight and logistics specialist doesn't plan to cut capacity and is in fact adding routes to its network, half of which starts or ends in Asia.
Asia, previously the industry's most robust market, has seen a marked slowdown from last year's buoyant growth.
Rival FedEx Corp. (FDX) recently warned of a slide in demand from Asia that started in July, leading them to cut capacity amid weak orders from sectors such as consumer electronics. Hong Kong, the world's largest air cargo center, has seen double-digit declines in cargo traffic compared with last year and, though DHL has a hub in the city, Rosen said its business mix has protected the company from such falls. DHL has a more extensive intra-Asia business than FedEx and United Parcel Service Inc. (UPS), both of which are more focused on longer-haul routes from region to Europe and North America.
Deutsche Post also provides warehousing and logistics support, and Rosen said the signs are similar for the supply chain unit, though its freight-forwarding business -- combining shipments and buying transport by air or sea -- had been softer.
04/10/11 Wall Street Journal

To Read the News in full at Source, Click the Headline

Categories: Cargo Oct 2011