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For the fastest transit time between Da Chan Bay and the Sri Lankan hub port of Colombo is China Shipping offers an 8-day service.

China Shipping's AMX 2 service departs from Da Chan Bay every Thursday and arrives the following Friday.

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Today's Feature

 

DHL: Is breaking up so hard to do? In the face of a near meltdown, is it time?

1718

IN the face of a near meltdown, is it time for Deutsche Post DHL to divest itself of its DHL Global Forwarding division, asks Roger Turney in Atlanta area Air Cargo World.

It is a question prompted by the tumultuous events going on within the group's forwarding business, he writes. Has DHL Global Forwarding just become too unweildy and unmanageable in its present state?

Separating the company from its current German parent could provide more corporate focus and allow it to revitalise its prospects.

Paradoxically, DHLGF is still the world's leading forwarding service provider, which, it should be made clear, is not about to relinquish that crown anytime soon. But it has become obvious, in recent months, that the company has clearly lost its way.

The first sign became apparent at the Deutsche Post DHL annual meeting in Frankfurt earlier this year. Embattled CEO Frank Appel announced that the group’s forwarding division had seen a 39 per cent drop in operating profits in the last year. The reason, he explained, was quite simple.
Management had become too focused on trying to implement a new IT system, which had drained resources and limited customer interactions. The result was loss of contact with its client base.


“The implementation of our transformation programme, New Forwarding Environment (NFE), has demanded a great deal of management attention," Mr Appel said. "This meant that there had not been enough focus on customer care and the day-to-day running of the business."

It also meant, by the way, that there would be no return to growth in earnings within the division before 2016.

Mr Appel, at the time, almost laughed off the profit fall. Such things could be overcome, he told his shareholders. But the Deutsche Post management board was clearly troubled. And a short while after, Roger Crook, CEO of DHL Global Forwarding, tendered his resignation, citing personal reasons.

He was replaced by Renato Chiavi, a previous DHL Danzas executive, who had been serving as an advisor to the DHL board. Soon after Mr Crook's announcement, Mr Appel said that any further roll-out of the troubled NFE programme was to be suspended, admitting the company had been overwhelmed by its complexity.

In the meantime, newly empowered Chiavi had set off on a roadtrip to get a clearer idea of what was happening at the front end of the business. His findings made for unhappy reading back at head office. In particular, Chiavi reports that the company's North American operation was in serious crisis due to the challenges it faced.

 

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