DHL Launches New Direct LCL Services From Vietnam to Germany, Italy and USA

Direct services enhance speed and benefits Vietnam businesses trading with key European and US markets

Plantation, Fla. – 1 September 2009 – DHL, the world’s leading logistics company, announced the launch of its guaranteed weekly direct Less than Container Load[1] (LCL) services connecting Ho Chi Minh City to Hamburg, Germany; Genoa, Italy and Los Angeles, USA. Through Danmar Lines, DHL’s in-house carrier, the new weekly direct LCL services enables shipments to arrive up to a week earlier.

The launch of the new services taps into the key trade lanes for businesses in Vietnam. The two European destinations facilitate trade with Vietnam's largest export region, with the continent receiving US$12.2 billion in Vietnamese products in 2008. Following closely is USA, Vietnam's second-largest trading partner, which received US$11.86 billion worth of goods from the fast-growing Southeast Asian nation last year[2].

In the face of the global economic slowdown, Vietnam remains a resilient export economy and key sectors including agricultural goods, apparel, crude oil, furniture, technology and textiles will benefit from DHL's flexible new service. In the first six months of this year, garment and apparel-related industries accounted for US$10 billion worth of exports from Vietnam, contributing well over a third of the nation’s export trade which totaled US$27.6 billion in that period[3].

“Our ability to continually expand our service portfolio underlines our commitment to offer best-in-class solutions for customers,” said Amadou Diallo, Chief Executive Officer, DHL

Global Forwarding, South Asia Pacific. “In the highly competitive business landscape, companies are faced with the challenge of responding more quickly to customer demands. Our direct LCL services offer cost-efficient solutions that meet customers’ needs, and support the healthy trade between Vietnam and Germany, Italy and USA.”

DHL Global Forwarding recently strengthened its commitment in the fast-growing fashion logistics industry in Vietnam with the launch of its textainers and garments-on-hangers products designed to support Vietnamese garment exporters. This is a system of transporting hanging garments which are among the most effective ways of transporting apparel over great distances as it protects garments, especially high-end, valuable clothing. It has also announced plans to establish the “DHL Fashion and Apparel Center for Excellence” in Vietnam.

“Adding the LCL service to our offering provides another option for businesses in the fashion industry to deliver their products around the world. By enhancing our service to Germany, Italy and USA, which are traditionally busy trade lanes for Vietnam, our customers will greatly benefit from the shorter transit times and reliable and seamless door-to-door service complete with full track and trace capabilities,” said Michel Khaou, Managing Director, DHL Global Forwarding Vietnam.

With this new service offering, DHL now serves 54 destinations in the USA with its inland network via Los Angeles and 26 European destinations through Genoa and Hamburg, offering direct services with fast and reliable transit times.

Clas Thorell, Head of LCL Management Asia Pacific, DHL Global Forwarding, said, “The introduction of this weekly service is part of DHL’s continuing plans to expand our own operated, weekly guaranteed, LCL services globally. DHL currently operates the world’s largest LCL network with more than 2,000,000 cubic meters of LCL freight handled annually via 45,000 point-pairs. With our strong in-house LCL network, expertise and capabilities, we have consistently maintained our leading position in the region and globally.”

As a global leader in LCL, DHL carries more than 97% of its total volumes in house. The in-house systems and strong global network enables the control of cargo flow, information flow, speed, accuracy, cost efficiency and reliability.

DHL’s launch of new direct services in Vietnam is part of its on-going enhancements of LCL service capabilities. Since the start of this year, DHL has launched 22 direct LCL services to meet increasing demand for the services. DHL’s newly launched routes this year include:
· Chennai, India to Felixstowe, UK
· Shenzhen, China to Hamburg, Germany; Genoa, Italy; Southampton, United Kingdom; Rotterdam, The Netherlands; Antwerp, Belgium; Le Havre, France and Vancouver, Canada
· Tokyo and Yokohama, Japan to Chicago, USA
· Bangkok, Thailand to Los Angeles, USA; Hamburg, Germany and Tokyo, Japan
· Shenzhen, China to New York, USA
· Port Kelang, Malaysia, to Los Angeles, USA; Shanghai, China and Hamburg, Germany
· Jakarta, Indonesia, to Los Angeles, USA and Hamburg, Germany
· Ho Chi Minh City, Vietnam, to Hamburg, Germany; Genoa, Italy and Los Angeles, USA.

[1] LCL services refer to smaller amounts of ocean freight cargo that are insufficient to fill a Full Container Load (FCL). The service is widely used by customers across many industries as it offers the flexibility of shipping smaller quantities in a timely manner.
2 EC Statistical Office, 2009
3 Vietnam Ministry of Foreign Affairs. Garment and apparel-related industries here refer to garments and shoes.