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DHL sees surge in road logistics in Southeast Asia

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3 years ago

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DHL Global Forwarding, the leading international freight specialist division of Deutsche Post DHL Group, foresees a strong and sustained growth in cross-border road transportation in Southeast Asia where the e-commerce sector is expected to grow 5.5 per cent in 2021.

The predicted upswing is also driven by the renewed growth in many of Southeast Asia’s leading economies, as manufacturing rebounds and companies regionalise and diversify their supply chains.

These trends are outlined in DHL’s whitepaper, titled ‘Southeast Asia Freight: The Road to Growth’, which was released on Wednesday (18 Aug).

“With the easing of trade restrictions and implementation of new regulatory initiatives in the region such as the ASEAN Customs Transit System and Regional Comprehensive Economic Partnership, trade cooperation will continue to strengthen and bolster intra-Asia trade. This augurs well for ASEAN countries as they gear up to bounce back strongly from the COVID-19 pandemic,” said Kelvin Leung, CEO at DHL Global Forwarding Asia Pacific.

One of the most significant developments is the ASEAN Customs Transit System (ACTS) introduced in 2020, which allows operators to move goods seamlessly across multiple ASEAN borders with a single guarantee that covers duties and taxes for the entire journey.

Source: DHL Asia Pacific

Road freight: An attractive and sustainable logistics solution on the rise

With East Asian economies expected to drive trade growth in 2021, the ASEAN road freight market is expected to witness a CAGR of greater than 8 per cent during the forecasted period of 2020-2025, said DHL.

The rise in e-commerce consumer spending and B2B e-commerce, which is predicted to see a 70 per cent increase by 2027, is also pushing demand for door-to-door logistics solutions.

“Road freight is now playing a more significant role in international long-haul solutions across Asia as it offers a cost effective and sustainable option. As we have seen in the last year with volatile air and ocean freight rates during the COVID-19 pandemic, road or multimodal solutions have offered more stable pricing, capacity, and easier border access in Southeast Asia,” said Thomas Tieber, CEO at DHL Global Forwarding Southeast Asia.

According to DHL, road freight is significantly cheaper and generates less emissions than air freight, while offering increased security and faster lead times than ocean freight.

Road solutions are also highly flexible with trucks able to manage door-to-door local, cross-border, long-haul, and short-haul deliveries, said the freight specialist.

Increasingly, customers are choosing to truck their short- and long-haul shipments for part of, or the entire journey due to the reduced carbon emissions it offers as compared to airfreight.

Case in point, DHL explained that an air-road shipment from Jakarta to Bangkok via Singapore cuts carbon emissions by half, in addition to cost savings of 35 per cent, as compared to a direct flight, while trucking a shipment from Singapore to China reduces carbon footprint by 83 per cent as compared to airfreight.

“Road logistics is seeing a greener future, powered by technology to become more efficient and secure, and being more sustainable with carbon efficient fuels. Together, these factors are transforming the road freight sector and creating ever more attractive and sustainable logistics solutions,” added Tieber.

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Asia

Up to 200 athletes tested for doping so far at Asian Games

Between 150 and 200 Asian Games athletes tested for doping, yielding no positive results. Anti-doping efforts emphasized for a clean event, focusing on record-breakers.

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1 year ago

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25 September 2023

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HANGZHOU, CHINA — Between 150 and 200 Asian Games athletes have already been tested for doping, the Olympic Council of Asia said on Monday, with no positive results so far.

Speaking at an anti-doping press conference on the second full day of the Games in the Chinese city of Hangzhou, the OCA said dope-testing was “gaining momentum” at the event.

Mani Jegathesan, an adviser to the OCA anti-doping committee, warned that drug cheats would be rooted out.

Up to 200 athletes have been tested so far, he said, but any positive results will take several days to come through.

“Every athlete participating in these Games must understand that they could be picked at any time,” Jegathesan warned.

“That is the best step to ensuring we have a clean event.”

There are about 12,000 athletes at the 19th Asian Games, more competitors than the Olympics, and Jegathesan admitted it would be impossible to test them all.

Instead, they will prioritise, including picking out those who break world or Asian records.

— AFP

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Asia

Foodpanda’s restructuring amid sale speculations

Food delivery giant Foodpanda, a subsidiary of Delivery Hero, announces staff layoffs in the Asia-Pacific region, aiming for increased efficiency. This move coincides with ongoing talks about potentially selling parts of its 11-year-old business.

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1 year ago

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24 September 2023

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Foodpanda, a subsidiary of Delivery Hero, is initiating undisclosed staff reductions in the Asia-Pacific region, as discussions continue regarding the potential sale of a portion of its 11-year-old food delivery business.

In a memorandum circulated to employees on 21 September, Foodpanda CEO Jakob Angele conveyed the company’s intent to become more streamlined, efficient, and agile.

Although the exact number of affected employees was not disclosed, the emphasis was on enhancing operational efficiency for the future.

No mention was made in the memo regarding the reports of Foodpanda’s potential sale in Singapore and six other Southeast Asian markets, possibly to Grab or other interested buyers.

Foodpanda had previously conducted staff layoffs in February and September 2022. These actions come as the company faces mounting pressure to achieve profitability, particularly in challenging economic conditions.

The regulatory filings of Foodpanda’s Singapore entity for the fiscal year 2022, ending on 31 Dec, indicated a loss of S$42.7 million despite generating revenue of S$256.7 million.

Angele further explained that Foodpanda intends to review its organizational structure, including both regional and country teams, with some reporting lines being reassigned to different leaders. Additionally, certain functions will be consolidated into regional teams.

Expressing regret over the challenging decisions, Angele assured affected employees of a severance package, paid gardening leave, and extended medical insurance coverage where feasible.

Foodpanda will also forego the usual waiting period for long-term incentive plan grants, and vesting will continue until the last employment date. Employees will retain all vested shares as of their last day of employment.

Foodpanda, established in 2012 and headquartered in Singapore, became a part of Delivery Hero in 2016. The company operates in 11 markets across the Asia-Pacific region, excluding its exit from the Japanese market last year.

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