Deutsche Post DHL - Annual Report 2010 - Business Units and Market Positions

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EXPRESS

Business units and market positions

EXPRESS division

Express division

Business units and market positions

Network for time-definite shipments spans the globe

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.