DHL Predicts Additional Growth in APEC Economies Through More Efficient Logistics

By Dhl, PRNE
Monday, November 8, 2010

Says Better Logistics Powers Growth, Raises Prosperity and Standard of Living

DUBAI, UAE, November 10, 2010 - DHL, the world's leading logistics company, has identified three key
levers to help emerging economies improve their logistics efficiency and
reduce the cost of trading by up to 30% by 2020. It appeals to governments,
shippers and logistics companies to become active partners in reducing
paperwork and administration, reform customs and security processes and
invest in infrastructure to maintain APEC countries' competitive advantage.

Speaking to media in Tokyo ahead of the APEC CEO Summit 2010, Hermann
, CEO, DHL Global Forwarding, said: "Over the past 30 years, world trade
as a percentage of GDP has increased from a third to over 50%[1], making
international trade the most important driver of economic growth and rising
living standards. However, inefficient logistics in many economies are still
a road block to trade growth. For example, BRIC countries on average require
twice[2] as many export/import documents versus Singapore or Germany. As a
result, paper-work can be the single most time consuming element in the life
of a shipment, with vital days lost and costs increasing as products spend
more time in warehouses than on the move."

Ude said that of the 60 days it currently takes from order to delivery in
a typical ocean freight shipment from India to Mexico, goods were on the move
for less than half of that time - with over 32[3] days spent on export and
import documentation and customs. A decreased administrative burden is the
lever that can provide the most logistics cost savings and is a relatively
easy win via the increased use of technology, such as e-customs, and better
cross-border co-operation and governmental agreements.

Customs and security are of paramount importance in this day and age, but
increased physical security requirements alone are not the panacea. On
average, BRIC countries do 10 times more physical cargo inspections than
best-in-class countries, without notably improving security. Introducing
smarter and globally more consistent security regulations are necessary to
promote intelligence sharing. "The way forward is through improved
intelligence, not sole reliance on physical security measures. Information
sharing, facilitated by stronger collaboration between businesses, industries
and public authorities all need to take place to make our world a safer
place," said Ude.

Infrastructure investments in key areas such as strategic ports and
interlinked road and railway systems are also needed if costs are to remain
competitive with growth maintained. "Infrastructure bottlenecks or
sub-standard transport facilities can force logistics companies such as DHL
to use sub-optimal routes in order to guarantee delivery and this increases
costs. For example, insufficient port capacity can lead to 15% to 30% higher
sea transportation rates on otherwise comparable routes and these costs come
with additional CO2 emission", said Ude.

With emerging economies growing two to three times faster than developed
countries, infrastructure limitations could seriously hamper competitiveness
in the long-term. However, strategic investments in key areas could
contribute 6% of the 30% reduction in logistics costs possible by 2020.

Cost savings are not the only benefits emerging economies could enjoy if
they address customs, security and infrastructure issues now. Trade transit
times could also be cut by 65%[4] and 20% to 40%[5] more trade could be

As the global expert in international express, air and ocean freight,
road and rail transportation and contract logistics, DHL plays a key role
facilitating trade between more than 220 countries and territories, including
all emerging and key economies and has established global best practice

It is working proactively with policy makers and shippers with the
ambition of facilitating a logistics cost saving of 30% and a lead time
reduction of 65% for an average BRIC shipment traveling by sea.[6] To this
end, DHL has developed a wide platform of solutions to cut administration
costs such as e-freight, EDI connections, and created over 100 high security
locations to ensure the security of transport operations. In addition to
working with governments to identify strategic areas requiring infrastructure
development, DHL invests in infrastructure globally and has invested over
EUR2.2 billion in Asia alone in recent years.

"30% improvement is a big ambition but one that governments, shippers and
service providers such as DHL can jointly achieve and must work towards
achieving if countries are to enjoy continued economic success and rising
standards of living. If regulators decrease bureaucracy and become more
process-orientated, logistics companies work consistently to reduce costs and
improve lead times and shippers form deeper partnership with logistics
providers, emerging market growth will stay on track," said Ude.

DHL - The Logistics company for the world

DHL is the global market leader in the logistics industry and
"The Logistics company for the world". DHL commits its expertise in
international express, air and ocean freight, road and rail transportation,
contract logistics and international mail services to its customers. A global
network composed of more than 220 countries and territories and about 300,000
employees worldwide offers customers superior service quality and local
knowledge to satisfy their supply chain requirements. DHL accepts its social
responsibility by supporting climate protection, disaster management and

DHL is part of Deutsche Post DHL. The Group generated revenue
of more than 46 billion euros in 2009.

For the latest news and happenings about DHL in Asia Pacific, visit


    [1] World Bank
    [2] World Bank
    [3] World Bank/DHL
    [4] DHL
    [5] DHL, London School of Economics
    [6] Using average cost of TEU based on World Bank and DHL estimates

Media Contact: DHL Asia Pacific/EEMEA, Corporate Communications and Sustainability, Anita Gupta, Tel: +65-6216-6290, Fax: +65-6216-6603, Email: APEEMEACorpCommunications at; DHL Asia Pacific/EEMEA, Corporate Communications, Melissa Pang, Tel: +971(0)4-292-4203, Email: Melissa.Pang at

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