DHL 2004 Annual Report Download - page 50

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As the US economy was also on a growth path in the past year, overall revenue rose
slightly for national and strongly for international CEP products. We were, including
Airborne Inc., the fourth-largest provider in this key market in 2003 (see left-hand
diagram at the bottom of this page). In America’s international CEP market, we are in
second place, as the right-hand diagram shows.
In the Asia/Pacific region
1), the markets for all CEP products recorded strong
growth. In particular, demand rose for high-margin heavy shipments. There was lively
export activity from the countries in this region to Europe and the USA. This was not
only a growth driver for cross-border shipments, but also an important source of income.
Significant inflows of funds boosted both private consumer confidence and investment
confidence on the part of domestic and international companies. Consequently, ship-
ments within Asia are gaining importance.
In 2003, the overall CEP market for the Asia/Pacific region recorded revenues of
around € 56 billion. Unlike the previous year, for the first time we are looking not only at
the relevant market at the moment, but also at the entire potential market. In addition to
the international express segment – where we were market leader in the key country of
China in 2003 – the domestic express sector is now also gaining importance for us. We
were able to improve our position noticeably here: in India through the acquisition of
Blue Dart and in New Zealand through the cooperation with New Zealand Post.
CEP products also recorded good overall development in the emerging markets,
where heavy shipments in particular again played an important role. Individual regions
such as the Middle East were able to derive significant economic benefit from the high
income from oil.
Logistics subject to high levels of consolidation
The process of consolidation in the highly fragmented international logistics market
continued in 2004: a prominent example in contract logistics* was Exel’s takeover of
Tibbett & Britten while, among the freight carriers*, a merger took place between Air
France and KLM.
After the substantial overcapacities seen in the air freight market in 2003, the year
under review saw a turn in the tide. Customer demand increased, leading to capacity
bottlenecks, particularly in Asia. As a result, rates for the affected routes rose as against
the previous year. Fuel surcharges, too, increased due to the oil price. On the whole, the
transported volumes are likely to have increased significantly.
US CEP market 2003
Market volume: € 50.5 billion
27.0% FedEx
12.7% USPS 7.0% Other
6.8% DHL
Source: Market Research Service Center in association with Colography Group 2004
46.5% UPS
US international CEP market 2003
Market volume: € 4.07 billion
38.1% Other
30.1% FedEx
1)
Comprising Hong Kong, South Korea, China, Japan, India, Australia, New Zealand, Singapore and Taiwan
* These terms are explained in the Glossary
3.3% USPS
13.5% UPS
15.0% DHL
46