DHL Upgrades Direct LCL Services from China to the Middle East

• DHL Global Forwarding adds weekly sailing from Shanghai to Dubai to meet growing trade lane demands
• Dubai economy to benefit from new direct service link into the Middle East

DHL Global Forwarding, the air and ocean freight specialist at Deutsche Post DHL, have announced the launch of an additional direct Less than Container Load(1) (LCL) service from Shanghai to Dubai, making it the second direct LCL service to connect China and the UAE. This new trade lane also extends to some other major cities in the Middle East such as Doha and Kuwait City. Dubai-based importers now have two sailings to choose from, allowing their exports to reach the Middle East in either 17 or 19 days.

"We are always striving to offer our customers better services to meet their ever changing business needs," said Claudio Scandella, CEO for DHL Global Forwarding, Middle East, North Africa and Turkey. "With the economic ties between the UAE and China continuing to expand and develop, our direct Shanghai to Dubai LCL service reflects DHL's commitment to supporting and nurturing bilateral trade between these two growing markets and our continued focus on offering superior logistics solutions that enable our customers to get their goods to market as quickly as possible."

Dubai, one of the world's premier transshipment hubs and the best port in the Middle East, ranks ninth among the world container ports, and plays a critical role in the economy of the Middle East. According to recent statistics, trade volume between China and the Middle East surged to 190 billion U.S. dollars in 2010. In the first half of the year 2011, the trade volume increased by 36 percent year-on-year to hit the 120 billion dollar mark(2).

The new LCL service by DHL will further strengthen trade between China and the Middle East, enhancing the competitiveness of Shanghai in the international shipping market, and offer customers based in the UAE and wider Gulf region a more cost-efficient solution to satisfy their shipping needs. The service is operated by Danmar Lines, the in-house carrier of DHL Global Forwarding.

"The launch of the new trade lane allows us to expand our service offerings geographically and also ensure a smooth transition from freight collection to delivery by offering outstanding assembly and distribution networks at both origin and destination," said Marc Meier, Global Head, LCL Management, DHL Global Forwarding. "With offices in every significant port and industrial region, we have the capability to meet different LCL requirements. Customers will enjoy a tangible reduction in transit time as well as the additional flexibility for last minute quality control and production."

"As trade between China and the UAE continues to rise, the new direct LCL service  is a valuable milestone to cater to the needs of new and existing customers, whilst also leveraging Dubai's strategic position as a regional logistics hub," said Samer Kaissi, Country Manager for Danzas Dubai. "The new route is an excellent example of Dubai playing an increasingly important role in facilitating regional trade by offering greater cost efficient services to customers."

All LCL services are accompanied by DHL's first-class IT solutions, such as DHL Track & Trace and other tools, to allow full visibility throughout the whole supply chain. For complete peace of mind, DHL also provides insurance services to customers as a value-added service. DHL's Shippers Interest Insurance (SII) covers losses or damages of all cargo transported by DHL, as well as transportation costs.

As a global leader in LCL, DHL provides a robust in-house LCL offering that is built upon the concept of National and Multinational Gateways. DHL carries more than 97 per cent of its total volumes in-house. The in-house systems and strong global network enables the control of cargo and information flow, increasing speed, accuracy, cost efficiency and reliability. Going beyond port to port, DHL local experts ensure controlled and timely customs clearance of their freight. Meanwhile, customers are provided with a choice of ocean freight management systems that control their shipping transactions and give full tracking visibility.

Footnote:

1. Less than Container Load (LCL) refers to smaller amounts of ocean freight cargo that are insufficient to fill a Full Container Load (FCL) on its own. The service is widely used by customers across many industries as it offers greater flexibility in the management of supply chains by being able to ship smaller quantities on a timelier basis.
2. http://news.xinhuanet.com/english2010/business/2011-09/22/c_131153613.htm

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