DHL looks to ride the ‘waves of volatility’

DHL Global Forwarding is expecting the recent volatility in the logistics market to continue well into 2011.

In a recent interview in Shanghai, DHL Global Forwarding chief executive officer, Hermann Ude (right), said that he doesn’t ex­­­pect a significant reduction in orders this year, despite the problems threatening the global econ­­omic recovery, but he does see more volatility in the global sea and air­­freight businesses in 2011.

Ude said that a tight supply of airfreight capacity out of Asia, combined with a reduction in the number of new freighters entering the market and the mothballing of older freighters, have pushed up freight rates.

“When big stones get thrown into the pond, you have waves coming back at you for a while, then maybe 2011, one or two quarters bad and then it comes back up again, so there are waves,” Ude said.

For the full story read the latest free digital edition of Air Cargo News, dated 24 July, here.