DHL Predicts Additional Growth in APEC Economies Through More
Efficient Logistics
TOKYO, Nov. 10, 2010 /PRNewswire-Asia/ --
-- Says better logistics powers growth, raises prosperity and
standard of living
-- Urges governments and regulators to decrease administrative
burden, pursue smarter approach to customs and security, and focus
on infrastructure investment to unleash growth potential
DHL, the world's leading logistics company, has identified three
key levers to help emerging economies improve their logistics
efficiency and reduce the cost of trading by up to 30% by 2020. It
appeals to governments, shippers and logistics companies to become
active partners in reducing paperwork and administration, reform
customs and security processes, and invest in infrastructure to
maintain the APEC countries' competitive advantage.
(Logo: http://www.prnasia.com/sa/2010/09/02/20100902467742-l.jpg
)
Speaking to media in Tokyo ahead of the APEC CEO Summit 2010,
Hermann Ude, CEO, DHL Global Forwarding, said: "Over the past 30
years, world trade as a percentage of GDP has increased from a
third to over 50%1, making international trade the most important
driver of economic growth and rising living standards. However,
inefficient logistics in many economies are still a roadblock to
trade growth. For example, BRIC countries on average require twice2
as many export/import documents versus Singapore or Germany. As a
result, paper-work can be the single most time consuming element in
the life of a shipment, with vital days lost and costs increasing
as products spend more time in warehouses than on the move."
Ude said that of the 60 days it currently takes from order to
delivery in a typical ocean freight shipment from India to Mexico,
goods were on the move for less than half of that time -- with over
323 days spent on export and import documentation and customs. A
decreased administrative burden is the lever that can provide the
most logistics cost savings and is a relatively easy win via the
increased use of technology, such as e-customs, and better
cross-border co-operation and governmental agreements.
Customs and security are of paramount importance in this day and
age, but increased physical security requirements alone are not the
panacea. On average, BRIC countries do 10 times more physical cargo
inspections than best-in-class countries, without notably improving
security. Introducing smarter and globally more consistent security
regulations are necessary to promote intelligence sharing. "The way
forward is through improved intelligence, not sole reliance on
physical security measures. Information sharing, facilitated by
stronger collaboration between businesses, industries and public
authorities all need to take place to make our world a safer
place," said Ude.
Infrastructure investments in key areas such as strategic ports and
interlinked road and railway systems are also needed if costs are
to remain competitive with growth maintained. "Infrastructure
bottlenecks or sub-standard transport facilities can force
logistics companies such as DHL to use sub-optimal routes in order
to guarantee delivery and this increases costs. For example,
insufficient port capacity can lead to 15% to 30% higher sea
transportation rates on otherwise comparable routes and these costs
come with additional CO2 emission," said Ude.
With emerging economies growing two to three times faster than
developed countries, infrastructure limitations could seriously
hamper competitiveness in the long-term. However, strategic
investments in key areas could contribute 6% of the 30% reduction
in logistics costs possible by 2020.
Cost savings are not the only benefits emerging economies could
enjoy if they address customs, security and infrastructure issues
now. Trade transit times could also be cut by 65%4 and 20% to 40%5
more trade could be generated.
As the global expert in international express, air and ocean
freight, road and rail transportation and contract logistics, DHL
plays a key role facilitating trade between more than 220 countries
and territories, including all emerging and key economies and has
established global best practice benchmarks.
It is working proactively with policy makers and shippers with the
ambition of facilitating a logistics cost saving of 30% and a lead
time reduction of 65% for an average BRIC shipment traveling by
sea.6 To this end, DHL has developed a wide platform of solutions
to cut administration costs such as e-freight, EDI connections, and
created over 100 high security locations to ensure the security of
transport operations. In addition to working with governments to
identify strategic areas requiring infrastructure development, DHL
invests in infrastructure globally and has invested over EUR2.2
billion in Asia alone in recent years.
"30% improvement is a big ambition but one that governments,
shippers and service providers such as DHL can jointly achieve and
must work towards achieving if countries are to enjoy continued
economic success and rising standards of living. If regulators
decrease bureaucracy and become more process-orientated, logistics
companies work consistently to reduce costs and improve lead times
and shippers form deeper partnership with logistics providers,
emerging market growth will stay on track," said Ude.
- End -
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 46 billion euros in 2009.
For the latest news and happenings about DHL in Asia Pacific, visit
http://press.ap.dhl.com.
Notes:
1 World Bank
2 World Bank
3 World Bank/DHL
4 DHL
5 DHL, London School of Economics
6 Using average cost of TEU based on World Bank and DHL
estimates
SOURCE DHL