DHL Launches Direct LCL Service from the U.S. to Korea

PLANTATION, Fla.--(BUSINESS WIRE)--DHL, the world's leading logistics company, today announced the launch of its direct LCL¹ (Less than container load) services from New York and Chicago to Pusan, enhancing its connectivity between South Korea and the United States. These new direct services will greatly enhance our strong presence in both the United States and Asia, where customers, especially small and medium sized enterprises (SME), will be provided an expanded service portfolio and access to the Korean market in a more secure and more efficient manner.

“Increasingly, customers who have predominantly been using airfreight services are also looking into ocean freight for greater cost efficiencies. The launch of the new direct LCL route connecting New York and Chicago to Pusan continues to enhance DHL’s leading position in the thriving logistics industry.”

DHL’s latest LCL service from New York and Chicago to Pusan will serve to bolster the significant trade volumes between United States and South Korea – bilateral trade between the two countries amounted to USD 67.9 billion in 2009² while Korea is the United States³ seventh-largest trading partner.

The new direct weekly LCL service, operated by Danmar Lines, the in-house carrier of DHL Global Forwarding, can reduce the transit time between the U.S. and South Korea by three or more days from New York and by three to five days from Chicago when compared to current service transit times. The direct service can reduce the risk of damage, loss and other contingencies, resulting in enhanced security for customers’ shipments.

The weekly New York-Pusan service, with an estimated 26-day transit time, offers greater flexibility, may reduce rail delays and eliminates rehandling of cargo in Los Angeles by moving directly from the Port of New York. The Chicago-Pusan weekly service, via the Port of Long Beach, eliminates rehandling of cargo utilizing intact containers.

Steen Christensen, DHL Global Forwarding, Sr. Vice President Ocean Freight North America, said, “Increasingly, customers who have predominantly been using airfreight services are also looking into ocean freight for greater cost efficiencies. The launch of the new direct LCL route connecting New York and Chicago to Pusan continues to enhance DHL’s leading position in the thriving logistics industry.”

The new LCL service is not limited to traditional port-to-port service. DHL also offers complete end-to-end supply chain management, which includes: pick-up at origin, consolidation and deconsolidation, delivery at destination, customs clearance and DHL Track & Trace - a unique IT system allowing customers full visibility of cargo throughout the process. These all-round reliable supply chain solutions will continue giving customers a potential edge over the competition.

Tara Caputo, DHL Global Forwarding Director, LCL Services North America said, “These new services are part of an ongoing roll out of direct consolidations bringing fast, cost-efficient and reliable services to the market to help American companies succeed even in the most challenging business environments. Operating the world’s largest LCL network with close to 2,000,000 cubic meters of LCL freight handled annually via 45,000 point-pairs, DHL offers an unmatched service as we continue to provide the most efficient and reliable supply chain solutions for customers,” continued Caputo.

Prior to the Chicago, New York LCL service to Pusan, DHL launched nine other direct LCL services⁴ in 2009 to meet increasing demand.

¹ Less than Container Load (LCL) refers to smaller amounts of ocean freight cargo that are insufficient to fill a Full Container Load (FCL) on its own. The service is widely used by customers across many industries as it offers greater flexibility in the management of supply chains by being able to ship smaller quantities on a timelier basis.

² U.S. Census Bureau (http://www.census.gov/foreign-trade/balance/c5800.html#2009)

³ Office of the United States Trade Representative (http://www.state.gov/r/pa/ei/bgn/2800.htm#travel)

⁴ Please see Appendix

DHL – The Logistics company for the world

DHL is the global market leader in the logistics industry and “The Logistics company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 300,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 54 billion euros in 2008.

For the latest news and happenings about DHL in North America, visit http://www.dhl-dgf.com.

Appendix

DHL Global Forwarding’s growing portfolio of direct LCL services launched in 2009 includes: