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EXPRESS Division
Network for time-definite shipments spans the globe
EXPRESS in figures
- Countries and territories: 220
- Servicepoints: 32,300
- Customers: 2.8 million
- Vehicles: 62,000
- Main global hubs: 3
The EXPRESS division transports time-sensitive documents and goods reliably from door to door via fixed routes and using standardised workflows. Our network spans more than 220 countries and territories, in which some 100,000 employees serve more than 2.8 million customers. Customers can dispatch shipments to 675 cities all over the world for a guaranteed pre-12 delivery.
As a global network operator, we are well aware that the quality of our services and the satisfaction of our customers are crucial in determining our success. That is why we are constantly optimising our service to keep our customer commitments. In 2010, an independent study by PA Consulting confirmed that we are the most reliable service provider for express parcels worldwide. DHL is the global market leader in the international express services sector.
Standardised time-definite products
International, time-definite courier and express shipments are our core business. Our Time Definite and Same Day services offer a choice of delivery at either a specific time or as quickly as possible. In some markets, our portfolio is complemented by Day Definite service as well as special services such as customs brokerage, clinical trials and repair and return.
Our customers usually make use of our customer service numbers or the internet when ordering transport services. However, customers can also leverage our extensive network of Service Points, which in Germany consists primarily of Deutsche Post retail outlets. Since 2010 we have been offering an international Time Definite product called DHL Express Easy at these points of sale. DHL Express Easy is particularly simple to use and facilitates shipping and payment for less experienced customers. We have also made progress in the special industry solutions we offer, for instance by gaining new customers for our DHL Medical Express service.
At a time when the impact of globalisation on climate and nature is a live issue, particularly in the logistics sector, we were the first express service provider to offer climate-neutral shipping products in the form of our GoGreen product, which we launched in 2006 and which is now available in more than 30 countries. Moreover, in certain markets our fleet to some extent already consists of vehicles fuelled by bio-methane.
Our aircraft fleet - economical and ecological
In 2010, we added another four Boeing 777s to our AeroLogic aircraft fleet. The current intercontinental fleet now comprises eight 777s, three 767s and nine 747s. We plan to add three more 767 aircraft to the fleet by 2012. All of these aircraft comply with the latest environmental standards.
Whilst the average load factor in the sector is approximately 54%, we have a load factor of around 80% on our intercontinental routes. Optimum utilisation of the aircraft means that we are supporting the Group's sustainability strategy and contributing to meeting climate protection goals. In addition, by expanding our fleet of aircraft we have increased our dedicated capacity by 40%, which allows us to process even greater volumes concurrently.
Furthermore, we have the most extensive coverage compared with the competition, serving more than 450 airports outside of the United States. Our new direct flights between Hong Kong and Leipzig, Paris and Cincinnati, and Frankfurt/Leipzig and Cincinnati mean that we can offer next-day delivery to customers in Europe and the United States, respectively.
Well positioned in the global express business
DHL has enjoyed a strong global positioning in the international express business for many years and is the international express market leader in all regions outside of North America. Moreover, we are continuing to expand our presence and infrastructure in growth markets such as Asia, for example through construction of the Shanghai hub in northern Asia.
Regions
International product offering expanded in the Americas region
During the year under review, we kept our service promise in full. DHL is considered to be the most reliable provider of international shipping from North America to Asia and vice versa. Both existing and new customers honour our reliability by showing great loyalty. Our refocus on the international express business and withdrawal from the domestic US express business have thus shown to be successful.
Since October 2010, our US customers have been able to send shipments to Europe, Latin America, the Middle East and Asia for pre-9 or pre-12 delivery. We have also made progress in environmental protection. During the reporting year, we began replacing our fleet with electric and hybrid vehicles.
We also maintained our position in the other sub-regions of the Americas region, Latin America (Mexico, Central America, Brazil and Spanish-speaking South America), Canada and the Caribbean. By expanding our hub in Panama, we more than doubled capacity and increased the frequency of connections. In the year under review, our Disaster Response Team provided assistance to regions hit by earthquakes in less than 48 hours, for which it received significant external recognition.
Leading position in Europe maintained
During the crisis year of 2009, we maintained our leading position in the international time-definite express market with a share of around 37%. We achieved this by steadily improving our service. Customers praised us for our service when flights were severely disrupted by the ash cloud migrating from the Eyjafjallajökull volcano in Iceland. The current study by PA Consulting also indicates that we are ahead of our competitors in terms of reliability for shipments to Asia, another reason for the loyalty of our customers.
In 2010, we streamlined our portfolio and sold our day-definite domestic express businesses in the United Kingdom and France. Since then, our local teams have been successfully focussing on our core business, the Time Definite product line.
The Leipzig hub is also gaining in international significance due to the expansion of AeroLogic's express network between Europe and the Asian and emerging market regions. More than 90% of all international shipments in Europe are now sent via Leipzig.
DHL still dominates Asian express market
Asia remains the growth driver for the express business. We maintained our leading position in the Time Definite International product line with a share of 34% of the market.
According to the aforementioned study by PA Consulting, we are the most reliable provider of courier services for shipments within Asia and on intercontinental routes to and from Asia.
DHL has proved to be the most reliable and fastest international express service provider in China, a key market in Asia Pacific. Furthermore, our global leadership team co-operates closely with experienced local managers. For instance, Board of Management member Ken Allen was elected to the board of management of the joint venture between DHL and Sinotrans.
With respect to customer satisfaction, DHL is ahead of the competition overall and in key categories in India and China. This is underlined by the numerous awards we have received in this region. Two of the three countries in which we were given the highest marks for the quality of our customer service are in Asia.
Leading position in emerging markets maintained
We also maintained our market leadership in the international time-definite express segment in the EEMEA region (Eastern Europe, the Middle East and Africa) with a share of 46%, not least due to our long-standing presence and good infrastructure in this region. In addition to an extensive air network, we maintain an efficient road network that is used across our DHL divisions.
In 2010 we celebrated 30 years in Qatar and our 35-year anniversary in Lebanon, both evidence of our pioneering spirit.