DHL to Secure Capacity between North Asia and Europe

DHL Global Forwarding is securing additional capacity from commercial carriers to avoid capacity constraints between North Asia and Europe throughout the first quarter of 2010. In November and December 2009, the global airfreight industry faced a strong increase in demand for transportation space, which contributed to backlogs of goods shipped from China to Europe. This resulted in steep increases in freight rates.

It appears that transportation capacity constraints will continue as a number of airlines are reluctant to increase cargo uplift capacity, which was reduced due to the global economic downturn. The reason behind this is the high cost of reactivating the temporarily grounded aircraft.

While the demand for air freight space traditionally decreases after the year-end holiday causing freight rates to drop significantly, the current capacity outlook and latest customer forecasts for the first quarter of 2010 indicate a continuation of airfreight capacity constraints on the North Asia to Europe trade lanes.

Airfreight out of China, Hong Kong, Korea and Taiwan is in particularly high demand, with the next peak expected to occur before the Chinese New Year in February, anticipating factory closures during the holidays.