DHL starting China domestic air freight services
DHL will become the first international logistics provider to operate domestic air freight services in China after receiving the China Air Transport Association (CATA) domestic air freight license, allowing it to operate within 17 Chinese cities.
DHL Global Forwarding Domestic Airfreight is part of DHL's $20 million investment plan for China, including network infrastructure, human resources development, as well as products and services.
According to the latest Boeing's World Air Cargo Forecast, China's domestic air cargo market is now the second largest in the world with an annual growth rate forecast of 10.8 percent over the next two decades.
'China has become one of the most significant logistics markets worldwide, with an abundance of open regulations and huge growth potential,' said Peter Landsiedel, DHL Global Forwarding's chief executive officer, Asia Pacific. 'We are confident that the license to operate and gain entry into the domestic air freight market will provide fresh opportunities and improved management of heavy air freight from door to door for our customers.
'The launch of DHL Global Forwarding Domestic Airfreight service is a strategic direction for us to expand westwards into second- and third-tier cities in China, allowing DHL to work more closely with our customers, who are developing their production base in the hinterland,' Landsiedel said.
The company has acquired 17 domestic air freight licenses, permitting services in Shanghai, Beijing, Dalian, Shenyang, Qingdao, Tianjin, Chengdu, Xiamen, Wu Lu Mu Qi, Nanjing, Ningbo, Xi’an, Kunming, Hangzhou, Guangzhou, Shenzhen and Wuhan.
DHL is partnering with major Chinese domestic carriers such as Air China Cargo, China Cargo Airlines, China Southern and Shanghai Airlines, which it said 'guarantees premium service quality, competitive pricing and ensuring block space allocation especially during peak seasons.'
Thirty CATA-licensed branches and warehouses, covering 70 cities in China, are scheduled for development by DHL in the next five years, the company said.