DHL Express observed a notable rise in the weight of shipments during the second quarter, driven by underlying market conditions that are pushing heavier cargo toward the integrator model, while the division sharpens its focus on industrial clients.

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In an interview with Air Cargo News in London this week, Mike Parra, CEO of DHL Express for Europe, indicated that the weight growth for its European operations had been running in the high single digits over recent weeks. For the second quarter, the division’s Time Definite International product recorded a 9.4% year-on-year increase in shipment weight, with Europe contributing a 2.9% rise.

Parra noted that this weight increase is part of a long-term trend, with the Express division carrying progressively heavier items since DHL’s inception in 1969, when it primarily handled documents. In recent years, the move toward heavier shipments has been influenced by e-commerce platforms shifting away from integrators to cheaper bulk transport and ‘local hero’ last-mile networks, thereby raising the proportion of heavier goods.

The current geopolitical instability, including the conflict in Iran, has accelerated this shift as more urgent, heavier items are routed through express networks due to their speed, reliability, and straightforward pricing. To leverage this trend and align with its industrial focus, DHL Express introduced a Heavy Weight Express (HWX) service at the beginning of the year, capable of handling pieces up to 1,000 kg and shipments up to 3,000 kg. This service offers time-definite delivery, end-to-end control, monitoring, and all-inclusive pricing, which mitigates rate volatility and cost uncertainties common in other freight segments.

Parra emphasized that the move toward express driven by geopolitical factors may not be temporary, as customers quickly adapt to the service level and dependability provided. He clarified that the goal is not to divert business from the forwarding division, but rather to serve customers with urgent needs, such as a downed oil rig requiring a 300 kg part delivered quickly, which would naturally choose DHL Express. As these customers transition, they recognize the safety, security, tracking value, and timely delivery.

The choice between express and forwarding typically hinges on the required speed: if a shipment must arrive within a few days, express is preferred, whereas longer timelines allow for forwarding solutions. Parra also mentioned that express services have size constraints.

Parra’s comments align with DHL’s recent second-quarter earnings call, where executives highlighted a continuing shift from freight forwarding to express. Group CEO Tobias Meyer noted that the express business has been gaining share from the general airfreight market over 50 years, with potential for further significant gains. Meyer also pointed out that express has improved its cost competitiveness relative to forwarding.

While weight shifts partly account for the volume growth in Europe, Parra cited additional factors. The express division has benefited from increased demand for semiconductors and data center volumes. Trade patterns have also changed since the first half of last year, when the current US administration implemented tariffs, prompting companies, especially from Asia Pacific, to redirect their focus away from the US to other regions.

Furthermore, DHL quickly adapted its Middle East air network during the Iran war, moving operations from Bahrain and Dubai to Riyadh and Muscat within 48 hours. The conflict also led to a shift from ocean freight as container services were disrupted, with companies willing to pay more for the reliability of a fixed express network.

Parra added that the company has added widebody Boeing 767 and 777 capacity to European routes to meet rising demand. Its intra-European network has also provided solutions for businesses affected by low water levels disrupting Germany’s barge operations.

On the regulatory front, Parra provided an update on the EU’s new €3 charge for shipments valued under €150, which also introduced data requirement changes. So far, DHL’s e-commerce volumes have dipped, but not as significantly as anticipated. He noted that the charge, implemented in July, is still in its early stages, and the full impact is unclear. After one month, the decline has been single-digit, not double-digit, making it difficult to predict future trends.

Parra speculated that the charge may primarily affect very low-cost, one-off items where the fee represents a larger proportion of the total cost. Looking ahead, he suggested that the charge, along with a €2 processing fee scheduled for November, could lead some e-commerce traffic to shift toward traditional distribution networks with regional warehousing.

https://www.indexbox.io/blog/dhl-express-sees-surge-in-shipment-weights-amid-geopolitical-shifts/