DHL riding China’s export wave with millions in new investments

The cargo forwarder will expand operations, as China’s strong export figures suggest the holiday season will buoy industry through 2024

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Cargo forwarder DHL is anticipating a strong season to end the year, buoyed by China’s sustained export growth. Photo: Reuters

Published: 9:30pm, 13 Sep 2024Updated: 5:36pm, 16 Sep 2024

Cargo forwarder DHL said it anticipates a surge in exports from China to drive a preponderance of transport and cargo processing over the final months of 2024, citing the country’s figures as it announced millions in planned investments to finish out the year.

The German-owned firm said it expects a “high-volume increase on the China outbound lane to the rest of the world during the coming peak” in a company statement released on Thursday.

DHL said it plans to spend €100 million (US$110.3 million) worldwide over the fourth quarter in anticipation of a glut of deliveries.

According to official data from August, China’s exports are holding strong, and analysts said pre-holiday shipments of merchandise to Europe and the US should bolster those figures.

“The fourth quarter is the traditional peak period, as it coincides with the West’s holiday season,” said Jayant Menon, senior fellow at the ISEAS-Yusof Ishak Institute in Singapore.

Drops in interest rates could also catalyse spending. “Consumer confidence may have bottomed,” he said, “and could start improving with expected reductions in US and global interest rates.”