Latest news with #DHLGlobalForwarding
Yahoo
2 days ago
- Business
- Yahoo
DHL Makes $570 Million Splash in the Middle East
DHL Group will invest more than 500 million euros ($574.5 million) in the Middle East through 2030, namely two of its fastest-growing markets: Saudi Arabia and the United Arab Emirates (UAE). With the investment, all four of the logistics giant's global divisions—DHL Express, DHL Global Forwarding, DHL Supply Chain and DHL eCommerce—will build on their infrastructure in the region as the two markets continue to accelerate their push into international trade and move their economies away from oil dependence. More from Sourcing Journal Trump Doubles Duties on Metals, Judge Dismisses California's Tariff Lawsuit Canada Post Denies Union's Request to Settle New Deal Via Arbitration Global Economic Growth Will Be Blunted By US Tariffs, OECD Says Saudi Arabia's non-oil exports reached an unprecedented 515 billion Saudi Riyal ($137 billion) in 2024, marking the highest value in the kingdom's history. These exports expanded 13 percent last year, and more than doubled (113 percent) since the launch of Saudi Arabia's Vision 2030 economic development program. The UAE saw even larger trade expansion over the past year, with non-oil exports growing 28 percent year over year to 561.2 billion dirhams ($153.8 billion). Investments for the DHL Express segment will be made in hub and gateway facilities, as well as enhancing aviation capacity to improve service efficiency and delivery speed. DHL Global Forwarding will expand its overall presence in the Middle East, invest in fleet of aircraft and trucks and pursue joint venture initiatives such as its recent partnership with Etihad Rail. For DHL Supply Chain, there will be an expansion of the contract logistics offering in both the UAE and Saudi Arabia, which includes increasing warehousing capacity, upgrading equipment and integrating advanced technology to optimize operations. DHL eCommerce entered the Saudi Arabian market in February by acquiring a minority stake in parcel delivery company AJEX Logistics Services, which has a network that includes over 50 facilities and a fleet of more than 900 vehicles. Although the company is penetrating a region known largely for its oil production, DHL emphasized its commitment to sustainability, including investments in alternative fuel, electric delivery vehicles, aviation fuels in air freight and biofuels for road and ocean freight, as well as solar energy and clean power for facilities. The commitment is aimed at building more sustainable supply chains, and helping customers achieve their net-zero ambitions. Both Saudi Arabia and the UAE have net-zero emissions goals for 2060 and 2050, respectively. Ahead of the investment, DHL's separate divisions already provided various logistics and transportation services to Middle Eastern customers, including express parcel delivery, air, ocean and overland freight, warehousing, fulfilment and distribution, and customs brokerage operations. As DHL expands its sphere of influence worldwide, the logistics giant is busy integrating another pivotal acquisition in the U.K. market. Last month, the company's DHL eCommerce U.K. branch merged with Evri after DHL Group acquired a minority stake in the parcel delivery company. The merged Evri business is anticipated to deliver over 1 billion parcels and a further 1 billion business letters annually. Evri's partners include U.K. retailers like Next, John Lewis and Marks & Spencer, as well as Etsy. The combined group will consist of 30,000 couriers and van drivers, another 12,000 workers and a fleet of 8,000 vehicles. With the deal, Evri says it plans on hiring 5,000 more couriers for the summer season, with 1,000 expected to be permanent jobs. Evri intends to expand its own international network for inbound and outbound parcels by leveraging DHL's cross-border parcel shipping expertise, alongside the company's global network of nearly 150,000 'out-of-home' global access points in shops and lockers. This includes access to Europe, the U.S. and select Asian markets such as India, and will mean faster transit times, the companies said. The partnership will incorporate DHL's UK Mail offering, entering Evri into the business letter market for the first time. DHL's other U.K. segments, including DHL Express, DHL Supply Chain and DHL Global Forwarding, are unaffected by the transaction. Evri will continue to be majority owned by Apollo Global Management, which acquired the company for a reported $3.5 billion last year. On Wednesday, the U.K.'s antitrust regulator, the Competition and Markets Authority (CMA), opened a probe into the merger. The CMA issued the inquiry into the deal with an invitation for interested parties to submit their comments on the deal June 25. After this, the CMA will formally launch its investigation. The agency is also probing GXO's $935 million acquisition of U.K. logistics provider Wincanton, with the regulatory body saying in February that the deal likely lessens competition in the supply of warehousing services to the country's grocers.
Zawya
28-05-2025
- Business
- Zawya
DHL and Hyperview sign MoU to pilot hydrogen-powered truck in Saudi Arabia
Collaboration supports Saudi Vision 2030 and explores feasibility of hydrogen infrastructure to support future logistics rollout Riyadh, Saudi Arabia: DHL Global Forwarding, the leading international provider of air, ocean, and road freight services, has signed a Memorandum of Understanding (MoU) with Hyperview Saudi, a leader in hydrogen mobility, to pilot hydrogen-powered trucks in the Kingdom of Saudi Arabia. This collaboration marks a significant step toward decarbonizing road freight in the region and accelerating sustainable logistics innovation in support of Saudi Vision 2030. The MoU outlines a three-month Proof of Concept (PoC) that will deploy the HTO2.1 hydrogen-powered truck model in Jubail. Fully funded by DHL Global Forwarding, the pilot aims to evaluate the vehicle's operational performance, cost-efficiency, and emissions reduction potential under real-world conditions. With hydrogen trucks, only water vapor comes out of the exhaust. If the hydrogen used is produced with green electricity, the reduction in greenhouse gas emissions can be up to 100%. The HTO2.1 model is designed for long-haul operations and equipped with Level 4 intelligent driving capabilities and a full suite of advanced sensors, including lidar, radar, and cameras. With predictive eco-driving features and aerodynamic enhancements, the vehicle can deliver up to 10% energy savings. It is expected to handle payloads of up to 45 tons and achieve a range of approximately 450 kilometers per hydrogen refill. In Saudi Arabia, the truck will operate on designated logistics routes in Jubail, allowing DHL to evaluate performance in high-temperature, high-demand transport environments. DHL Global Forwarding currently operates a fleet of more than 700 rental vehicles in Saudi Arabia and is actively evaluating hydrogen as a viable long-term alternative to conventional fuels. The pilot, featuring a truck engineered to meet DHL's specific operational needs, will also assess the feasibility of local hydrogen refueling infrastructure and gather key environmental and economic data to support scalable hydrogen adoption in logistics. Hyperview is also engaged with key national stakeholders in the Kingdom to support hydrogen production and the development of the infrastructure needed to refuel these trucks. This MoU supports DHL Group's Sustainability Strategy, which targets net-zero emissions logistics by 2050, and aligns with Saudi Arabia's Vision 2030 strategy, which prioritizes investment in clean energy and more sustainable transportation technologies. 'This pilot reflects DHL's commitment to redefining logistics through sustainable innovation. As we pursue our journey toward net-zero emissions logistics, we are exploring and piloting various alternative drive and fuel solutions worldwide. Particularly concerning road freight and long-haul transport, a technology-agnostic approach is essential for identifying the most effective solutions for decarbonizing transportation. We are pleased to have the opportunity to gather valuable insights and experiences in operations here,' states Sue Donoghue, CEO KSA, DHL Global Forwarding The collaboration also represents a pioneering effort to deploy hydrogen trucks in the Middle East logistics sector, contributing to global decarbonization. 'This pilot builds on our ongoing efforts to introduce hydrogen-powered intelligent heavy-duty trucks in Saudi Arabia. Partnering with DHL allows us to demonstrate how technology-driven logistics can advance national climate objectives. Through this Proof of Concept, we aim to validate hydrogen as a commercially viable and environmentally essential solution for freight movement. Combined with onboard intelligent driving technology, this new truck will also help DHL prevent accident, improve efficiency hence maintain high level of operational excellence,' states Dr. Feilong Liu, CEO Hyperview. 'This pilot is a defining step in building the logistics infrastructure of the future. As an early investor in Hyperview, we believe this collaboration shows how advanced mobility technologies can be deployed locally to address global decarbonization challenges. It also highlights the Kingdom's growing role as a testbed for breakthrough innovations aligned with Vision 2030,' says Raed Twaily, Executive Managing Director, Prosperity7 Ventures. You can find the press release for download as well as further information on About DHL Group DHL Group is the world's leading logistic company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees, investors and green logistics worldwide. To this end, DHL Group is focusing on accelerating sustainable growth in its profitable core logistics businesses and Group growth initiatives. The Group contributes to the world through sustainable business practices, corporate citizenship, and environmental activities. By the year 2050, DHL Group aims to achieve net-zero emissions logistics. DHL Group is home to two strong brands: DHL offers a comprehensive range of parcel, express, freight transport, and supply chain management services as well as e-commerce logistics solutions. Deutsche Post is the largest postal service provider in Europe and the market leader in the German mail market. DHL Group employs approximately 602,000 people in over 220 countries and territories worldwide. The Group generated revenues of approximately 84.2 billion Euros in 2024. The logistics company for the world. About Hyperview Mobility Hyperview Mobility is a global leader in intelligent driving technology, offering fully integrated autonomous driving systems for commercial and passenger vehicles. With mass production experience across 30+ vehicle models and operations in over 15 countries, the company's solutions for L3+ heavy-duty trucks are already deployed in international markets, supported by a team with expertise from global automotive and tech majors. Hyperview is the only autonomous driving company globally to receive investment from Saudi Aramco. Hyperview Saudi, its regional entity, is registered in the Kingdom as Sedik Al-baiya For Logistics Co., Ltd. Media Contact Media Relations Sara Seggari E-mail: On the internet: Follow us at:
Yahoo
02-05-2025
- Business
- Yahoo
DHL Rides Out China-U.S. Turmoil: Supply Chain Shifts ‘Good for Us'
DHL Group's reduced exposure on the trans-Pacific trade lane and a 'disproportionately high market share in non-direct U.S. trade lanes' could keep the logistics giant above water during a U.S.-China trade war that doesn't look like it's slowing down. In its first quarter, DHL increased revenue by 2.8 percent year over year to 20.8 billion euros ($23.6 billion), while consolidated net profit jumped 6.2 percent to 786 million euros ($892.5 million). More from Sourcing Journal Could Changes to Customs Policy Undermine Trump's De Minimis Ban? Tariff Ticker: Administration Ticks Off Textile Sector, Congress to Vote on Trump's Power to Impose Duties Dallas Market Center Launches Campaign Pushing 90-Day Pause on China Tariffs Diversification has been a key for the company amid the volatility. Although DHL CEO Tobias Meyer indicated that Express business-to-consumer (B2C) shipments have been 'notably down' for multiple quarters as the company lowers its percentage of China-to-U.S. flights, the trans-Pacific hit is 'relatively small if you compare it with some of our peers.' Shipments from China and Hong Kong to the U.S. only comprise 8 percent of total volumes via DHL Express. For DHL Global Forwarding, these shipments represent 8 percent of the ocean freight booked, as well as an even smaller 4 percent of air freight. Those figures have historically been 'partially higher,' according to Meyer. According to chief financial officer Melanie Kreis, a decrease in China-to-U.S. volumes likely will not be 'fully compensated' from growth on other trade lanes, 'but it's a very volatile and moving target.' Meyer acknowledged negatives that could harm the business, like the tariffs, with the 10-percent baseline duty imposed by U.S. President Donald Trump 'still four times higher the effective tariff rate that we had before.' He also noted that the 'wait and see' approach of many businesses in April is a cause for concern—exacerbating concerns that DHL Global Forwarding saw EBIT contract a wider-than-expected 23 percent in the first quarter. But the CEO spoke to the benefits of global supply chain reconfigurations like the intra-Asia moves to reposition inventory, or shifts in delivery modes like going from parcelized shipments to bulk transportation. 'We increasingly see customers thinking about this, that they have manufacturing capacity that currently doesn't serve the U.S., but is in a country that we currently expect to be in a favorable position as it relates to tariffs,' said Meyer. 'That production then is used for exports to the U.S. and the local market being served by production capacity in China obviously also needs employment. That element could indeed be quite positive, because it significantly increases logistics cost, it leads to higher complexity and that's in tendency, good for us.' DHL retained its 2025 guidance target of at or above 6 billion euros ($6.8 billion) in operating profit. But the outlook does not cover potential negative or positive impacts of changes in tariff or trade policies. The Germany-based company did not give insight into the percentage of DHL Express packages that fell under the de minimis exemption, which closes for goods out of China on May 2, but according to Kreis, 'we have already reduced our exposure.' 'We do not expect a complete wipeout of the de minimis volume. This volume will, to some extent, find other channels,' said Meyer in the call. 'There will certainly be a decline on the e-commerce side, but we do expect other solutions to also take up a certain amount of volume.' The earnings results came two days after DHL reversed course on its suspension of high-value shipments to U.S. consumers. The about-face occurred after the logistics giant had a 'constructive dialogue' with the U.S. government, which raised the formal entry processing threshold into the country back to $2,500 from $800. 'Clarity is important,' said Ram Ben-Tzion, co-founder and CEO of digital shipment vetting platform of Publican. 'In the negotiation with the government, it's not as if there was some sort of agreement off the books to overlook violations. There was clarity on what is expected, and once there is clarity, an organization like the DHL, FedEx or UPS can plan ahead and prepare and see what capacity will allow them.' With the reversal of the formal threshold, shipments valued between $800 and $2,500 can once again be cleared using the expedited informal entry process. This requires fewer documents and no customs bond, enabling DHL to resume normal operations. U.S.-bound shipments may still experience transit delays as DHL navigates the reintroduction of the service and clears the current backlog of packages. Ben-Tzion told Sourcing Journal that the flood of packages could still trip the company up as the de minimis suspension goes into effect. 'While [the reversal] will allow them to entertain high-value items $800 to $2,500, the probability of them being able to do the same with $20 packages is slim to none,' he warned. Meyer said in the earnings call that he believes U.S. Customs and Border Protection (CBP) is better prepared for the various changes, but 'whether it's efficiently well prepared is a different question.' 'To be honest, there is still a lot to be worked through. It's obviously a time of high workload for [the CBP],' said Meyer. 'This is not only the de minimis exemption. We have seen the shift from informal into formal clearances, and now the exemption there to reinstate the scope of informal clearances. That also covers some of our concern as it relates to de minimis shipments now falling directly into formal clearances. That impact is much more severe.' Sign in to access your portfolio
