Source: Fortune
Summary
DHL Express Europe is navigating the impact of the U.S.-Iran conflict and rising fuel prices on its air freight operations. The company has diversified its fuel supplies, implemented tankering, and increased its sustainable fuel supply to mitigate the effects. DHL Express has also introduced a security risk surcharge for deliveries to war-impacted areas and implemented road “linehaul” routes in the Middle East. Despite the challenges, the company remains committed to the region and has invested in wellbeing initiatives for its employees.
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DHL Express’s fuel surcharge has peaked at 48.75% and currently stands at 40.75%. The company has had to increase prices to maintain margins. DHL’s network planning team has been essential in managing the complexity of fuel prices and routes. The company’s internal shipment tool VISTA helps employees review the weight and balance of aircraft to determine the most cost-effective and efficient routes. DHL Express has also implemented a five-step wellbeing strategy to support its employees amidst the uncertainty. “We can’t predict the volatility, but we can manage the complexity that goes around it,” says Mike Parra, DHL Europe’s CEO.
Businesses can’t control conflict, but they can control how well they prepare and adapt.
Author: Evan Null
