DHL launches first direct LCL service connecting China and Pakistan

Sea freight from Shanghai to arrive in Pakistan in 18 days

Karachi, August 04, 2011: DHL, the world’s leading logistics company, today announced the launch of its direct Less than Container Load^[1] (LCL) service from Shanghai to Karachi, making it the first direct LCL service to connect China and Pakistan. The new direct weekly LCL service, operated by Danmar Lines, the in-house carrier of DHL Global Forwarding, reduces transit time by 7 days to 18 days, and will help China-based exporters better tap into the growing business opportunities in Pakistan as China strengthens trade ties with its North Asian neighbor. In addition to shipments arriving earlier, the new service reduces CO₂ emissions by approximately 7 per cent.

China and Pakistan signed a Free Trade Agreement (FTA) in November 2006 which projected to triple bilateral trade to US$15 billion by 2015. In 2010, the trade volume between China and Pakistan had already doubled from 2005 levels, and exceeded US$8.6 billion[2], a high 27.7% growth compared with 2009.  

“In terms of freight volumes China has been Pakistan’s largest import trading partner for several years and for DHL that is reflected in a strong demand from our customer base in Pakistan for cost-effective transportation solutions on this route. In order to support local enterprises to import even small volumes via ocean freight we have launched a new direct LCL service from Shanghai to Karachi. This service further enhances our market-leading global LCL network and at the same time increases our customers’ competitiveness by giving them greater flexibility for their supply chain,” said Mr. Amadou Diallo, CEO, Africa & South Asia Pacific, DHL Global Forwarding.

Mr. Imran Shaikh, Managing Director for DHL Global Forwarding Pakistan said “Our aim is to increase competitiveness of local and multinational companies, and efficient inbound logistics is a crucial success factor to this. With this new direct LCL service, DHL is helping our small to medium enterprises and multinational customers manage the increased complexities around seasonal demands, access new sales channels, and support new product launches. Our customers in Pakistan will benefit from reliable and shorter transit times, as well as seamless door-to-door services complete with full track and trace capabilities.”

Marc Meier, Head of LCL Management Global, DHL Global Forwarding, said, “As a global leader in LCL, we offer unrivalled coverage with more than 1,500 weekly point pairs from 24 North Pacific terminals sailing to 63 destination terminals in South Asia Pacific. What DHL provides is a robust in-house LCL offering that is built upon the concept of National and Multinational Gateways, supported by 400 terminals around the world.”

DHL currently operates the world’s largest LCL network with close to 2,000,000 cubic meters of LCL freight handled annually via 45,000 point-pairs. As a global leader in LCL, 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 flow, information flow, speed, accuracy, cost efficiency and reliability. Going beyond port to port, DHL LCL service also offers a complete end-to-end supply chain management that includes pick-up at origin, consolidation and deconsolidation, delivery at destination and customs clearance.

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.

- End -

---

[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] Source: http://pakistanexpressnews.com/trade-with-china-totaled-8-6-billion