Logistics and shipping service provider, DHL is reportedly investing USD 185 million (AUD 253.45 million) in its U.S. operations this year until 2017. This, in an effort to address their growing e-commerce volume in the country with extra technology, infrastructure, and manpower, company representatives said. Per reports, the move was done to expand the company’s plans regarding growth in other countries in the region. In line with this, new investments are set to be done in Canada, Mexico, Peru, Chile, and Brazil.
A particular sign of growth is DHL’s forecast of 12 percent volume increase year over year in the 2016 holiday season, which was partly triggered by the strong US dollar that pretty much encourages consumers to shop online from other countries for holiday gifts. This, in turn, boosts the demand for import volume.
The projection is pretty much comparable to the prediction of their rival, UPS, which suggested a 14 per cent increase in seasonal global delivery volume from last year’s peak season. On the other hand, the growth prediction of DHL extends beyond seasonal holidays (Christmas, Mother’s Day, Thanksgiving, etc) since part of their global e-commerce volume rose over 20 per cent. To address this, the company is planning to leverage global B2C e-commerce market for cross-border shipments. This is expected to experience growth with regard to absolute terms from USD 400 billion (AUD 548 billion) today to a total global volume of USD 1 trillion (AUD 1.37 trillion) in 2020.
Per additional reports, future expenditures will include USD 20 million (AUD 27.4 million) in a span of two years to upgrade and expand their ground fleet and add extra fuel-efficient vehicles that include electric forklifts as well as vans in their JFK Airport. DHL will also utilise close to USD 60 million (AUD 82.2 million) in a effort to deal with their growing shipping volumes. They will use the funds to expand as well as add facilities and at the same time provide security as well as technology upgrades.