DHL revamps LCL service
from China to West Coast
Jul 19, 2011 10:15 AM
Logistics company DHL has launched its direct less-than-container-load (LCL) service from Shanghai, China, to Seattle WA. The service will improve DHL’s capabilities to help Chinese businesses extend their footprint into the US market cost-effectively. With expanding trade between Shanghai and Seattle, this new service will also ensure secure and faster arrival of commodities being transported from China, including fruit, fish, and seafood.
The new direct weekly LCL service, operated by Danmar Lines, will cover freight moving from mainland China to Seattle and Portland OR on the US West Coast and can reduce overall transit time between China and the United States by four days. With cargo shipped directly from Shanghai to Seattle, customers can expect their shipments to arrive in the United States within 12 days.
“Most of the freight arriving in on the West Coast comes into the Port of Los Angeles, so by DHL offering a direct service into Seattle, we are not only providing customer’s shorter transit times but also lessening the carbon footprint,” said Tara Caputo, director of LCL for DHL Global Forwarding North America.
Increasingly, multinational corporations and small and medium enterprises alike in China are turning to ocean freight for greater cost efficiencies when introducing a new or expanding an existing export strategy. In 2010, the Port of Shanghai surpassed Singapore to become the world’s busiest and largest container port, with a total container throughput of 29 million TEUs. Most recently, Shanghai announced plans to kick-start the fourth phase of expansion at Yangshan Deep-Port, a project estimated to cost more than US $1.5 billion. The expansion will increase the deepwater port’s handling capacity by 40% to 9.3 million TEUs by 2015 and facilitate Shanghai’s efforts to build an international shipping hub.
DHL currently operates an LCL network with close to 2 million cubic meters of LCL freight handled annually via 45,000 point-pairs. The company carries more than 97% of its total volumes in house. Its LCL service also offers a complete end-to-end supply chain management that includes pick-up at origin, consolidation and deconsolidation, delivery at destination, and customs clearance.
All LCL services are accompanied by IT systems such as DHL Track & Trace and other tools to allow full visibility throughout the supply chain. DHL also provides insurance services to customers. Its Shippers Interest Insurance (SII) covers losses or damages of all cargo transported by DHL, as well as transportation costs.
© 2013 Penton Media Inc.