November 19, 2019 / 12:15 PM / 19 days ago

DHL not worried about competition from online players

FILE PHOTO: A woman is silhouetted against a world map of German postal and logistics group Deutsche Post DHL before the company's annual news conference in Bonn March 8, 2012. REUTERS/Wolfgang Rattay

TROISDORF, Germany (Reuters) - DHL Express is not worried about big online customers like Amazon (AMZN.O) becoming rivals as they build up their own logistics, the head of the courier arm of Deutsche Post (DPWGn.DE) said on Tuesday.

DHL offers cross-border and time-critical deliveries, which online companies cannot yet do even if they are expanding their transport capabilities, Express head John Pearson said at the opening of a new logistics centre at the Cologne-Bonn airport.

Amazon has begun hiring its own drivers in Germany and plans to open 11 more distribution centres to expand its delivery business in its second biggest market, the firm’s German logistics chief told Reuters in September.

As Amazon builds out its own U.S. logistics network, FedEx Corp (FDX.N) has ended its contract with the company for small-package ground deliveries and decided not to renew its contract for U.S. cargo delivery through its plane-based express service.

Pearson said DHL was not dependent on big customers and is increasingly handling deliveries for smaller online retailers.

DHL Express reported that sales rose 6.3% in the first nine months of 2019 to 12.5 billion euros ($13.84 billion), or about a quarter of the group total, while its operating earnings rose 3% to 1.4 billion euros, almost half of the group total.

Although trade conflicts have dampened the prospects for global growth, Pearson said his division was internationally diversified and served numerous sectors, helping it to compensate for regional weaknesses.

Reporting by Matthias Inverardi; Writing by Emma Thomasson; Editing by Michelle Martin

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