DHL lowers profit expectations after weaker-than-expected Q3
DHL singled out its Global Forwarding division for a weaker-than-expected third quarter, and confirmed it ...
XPO: BUILDING BLOCKSHLAG: BIG ORDERLINE: REACTIONLINE: EXPENSES AND OPERATING LEVERAGELINE: PIPELINE OF DEALS LINE: DEMAND PATTERNS LINE: LANDSCAPELINE: CONF CALL STARTSDSV: UNTOUCHABLEEXPD: NOT AS BULLISH AS PREVIOUSLYFWRD: SPECULATIVE RALLY MAERSK: INTEGRATED LOGISTICS WIN MAERSK: TRUMP TRADEKNIN: THE SLIDELINE: DEBUT AAPL: ASIA CAPEXDHL: THE HANGOVERXPO: ELECTION DAY RALLY
XPO: BUILDING BLOCKSHLAG: BIG ORDERLINE: REACTIONLINE: EXPENSES AND OPERATING LEVERAGELINE: PIPELINE OF DEALS LINE: DEMAND PATTERNS LINE: LANDSCAPELINE: CONF CALL STARTSDSV: UNTOUCHABLEEXPD: NOT AS BULLISH AS PREVIOUSLYFWRD: SPECULATIVE RALLY MAERSK: INTEGRATED LOGISTICS WIN MAERSK: TRUMP TRADEKNIN: THE SLIDELINE: DEBUT AAPL: ASIA CAPEXDHL: THE HANGOVERXPO: ELECTION DAY RALLY
Express parcel service providers are looking to capitalise on strong ecommerce demand out of India, propelled by accelerated economic development and rising middle-class spending on discretionary products.
Major international and domestic parcel integrators have announced significant general rate increases for 2025.
DHL Express will implement a 6.9% rate hike from 1 January for Indian customers. The market leader said the upward price adjustment was necessary to recoup the higher operating costs due to inflationary pressures, currency fluctuations and security factors.
“We are committed to delivering stable and dependable services globally despite the ongoing impact of geopolitical dynamics and supply chain disruptions on the logistics landscape,” said RS Subramanian, SVP for South Asia.
“With the annual price adjustment, we can continue to invest in our network to enhance its resilience and adaptability, ensuring consistent support for our customers’ businesses regardless of external circumstances.”
And domestic players have lined up even higher rate increases for the new year. Blue Dart Express, India’s largest freighter airline and part of DHL Group, will push its rate scale up 9% to 12%, depending on product type and shipper profile.
Blue Dart MD Balfour Manuel said: “This price adjustment is essential for sustaining our operational excellence.”
Similarly, Mumbai-based Allcargo Group advised customers rates at its express distribution arm, Gati, would rise 10.2%, a hike the Shashi Kiran Shetty-led group claimed was the first since it acquired the parcel integrator in 2019.
But it added that new customers signing contracts in Q4 would have full relief from the increased rates.
Most niche express package companies have beefed up their Indian operations in recent years, expanding fleet capacity and adding fulfilment centres. DHL has a $500m expansion programme running through 2026, UPS recently opened its second large airport gateway facility at Bengaluru, the busiest perishables gateway, while FedEx stepped up its digital innovations with a $100m “tech hub” plan for Hyderabad.
Amid the heightened appetite for market leadership, global express integrators have also come under regulatory scrutiny from antitrust regulator the Competition Commission of India (CCI), over alleged anti-competitive practices.
Meanwhile, other cargo airlines are also rushing to take advantage of India’s air cargo boom, as manufacturing expansion adds to the market potential.
China’s Air Central recently operated a flight from China to Hyderabad Airport in southern India. According to local sources, the move was driven by increasing imports into the region.
Additionally, global air cargo conglomerate Challenge Group has enhanced its network out of India, announcing two weekly flights out of Delhi this month, on top of three flights a week it already has for Mumbai.
Amar More, CEO of Mumbai-based Kale Logistics Solutions, told The Loadstar Indian airports were getting busier with cargo flows, with a 10% year-on-year increase in volumes last fiscal year. He says the momentum is driving airlines to form strategic partnerships with ecommerce giants and logistics solutions providers “to raise the bar of their supply chain ecosystems”.
He added: “Both Indian and international airlines are ramping up their cargo operations in India, driven by booming exports, the China-plus-one strategy and the rapid expansion of the ecommerce sector. With logistics e-marketplaces in the offing, the market is going to be very bullish.”
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