Each center has temperature control equipment for cargo and personnel trained to monitor and control temperature levels. DHL is developing new Thermonet centers throughout Latin America and other international markets.
DHL Express and DHL Gobal Forwarding are units of German logistics company Deutsch Post DHL. DHL Express has expanded its operations in the United States after a major cutback in 2008, when it discontinued its domestic express services and fired more than 9,500 employees. The company decided it would no longer compete with UPS and FedEx in the domestic market and would concentrate on international service. Worldwide, DHL Express, global freight and supply chain businesses have a network in 220 countries and territories and 285,000 employees.
“In general, we think DHL Express has been smart to invest in building out its Latin American infrastructure, as we see that region of the world as one of the global trade growth leaders over the next decade, along with Asia and Africa, where DHL also has a significant presence,” said David G. Ross, an analyst with brokerage and investment firm Stifel Nicolaus, which had a “hold” rating on DP DHL stock in its most recent report.
A local trade expert also lauded DHL Express’ Latin American strategy.
“The increase in nearshoring [moving manufacturing from China to Latin America] is a key factor in DHL’s philosophy,” said Gary Goldfarb, executive vice president of WTDC, a Miami-based logistics company specializing in international distribution and global transportation management. “The driver is the fact that wages have gone up in China and countries like Chile can now offer high-value manufacturing and no tariffs.”
Goldfarb also pointed out mining in Mexico has “exploded” and mining in Peru has rekindled, and these industries constantly require parts and equipment. “Companies like these need parts yesterday and DHL can provide them,” Goldfarb said.
Politically stable countries like Panama, Colombia, Chile, Mexico and most of Central America are growing tremendously, and once the expanded Panama canals open up there will be no impediments to East-West trade, he noted.
“DHL has been working and investing in Latin America for a long time. They know their market well and they’re right on the money.”