How DHL tackled mail and parcel boom during peak Easter season

The ongoing integration and modernization of mail and parcel networks in Germany has prepared DHL’s Post & Parcel division to handle a surge in mail and e-commerce packages for the Easter holiday season, according to the company.

Post & Parcel German is in the midst of a major transformation as it responds to a secular change in its business, which has seen letter volumes steadily decline while the continued strength of online shopping propels significant growth in parcel volumes.

Rightsizing infrastructure — sorting centers, ground fleets and workforce — and combining the delivery of letters and parcels to reflect these developments are key to the restructuring In recent years, DHL has worked to merge mail and parcel networks operated by Post & Parcel, doing business as Deutsche Post, and DHL Express.

Europe’s largest postal operator can now process smaller parcels in mail centers and deliver them by letter carrier. And the company continues to expand combined delivery of letters and parcels, said spokesperson Sarah Preuss in an email message. DHL is investing about $1.

15 billion per year to futureproof its network and improve efficiency through upgrades to mail centers, digitizing processes, fleet electrification and training. Parcel volumes leading up to Easter Sunday reached about 9 million shipments on some days, far above the regular daily average, Deutsche Post and DHL said in a news release last week.

The upswing is driven by online orders for Easter gifts and spring items. “We expect the biggest peak right after the holidays, as many consumers use their free time to shop online, and the gardening and balcony season also picks up speed,” said Marc Hitschfeld, head of operations for Post & Parcel Germany at DHL Group. A record 10.

5 million parcels are expected to be processed across Germany on April 7, the busiest day of the Easter season in the postal and parcel system, up from 9 million pieces last year, DHL said. Bulky items, such as outdoor chairs and lounge furniture, gazebos and balcony solar power systems are also in high demand.

DHL 2-Mann-Handling GmbH, which specializes in delivering big-and-bulky items, has seen an increase in volume compared to the rest of the year. A particular challenge for the DHL 2-Mann-Handling team is that some shipments are very long and large. Awnings, for example, are up to 19. 5 feet in length.

Mail volumes are also traditionally high before East as retailers engage in promotional campaigns. After Easter, parcel volumes remain higher for a while as many shoppers choose to return some merchandise. DHL Post & Parcel and DHL Express adjusted vehicle and equipment capacity several weeks ago in anticipation of a busy Easter shipping season.

“The fact that we can handle peak periods, such as Easter, with more than 10 million parcels in a single day shows how far we have already come in restructuring our system,” said Hitschfeld. Post & Parcel Germany employs about 116,000 delivery personnel and more than 40,000 staff in its mail and parcel centers.

Customs have access to about 17,000 post office and parcel lockers, along with other delivery and collection options.

E-commerce joint venture in Spain, Portugal In related news, the European Commission recently approved the joint venture partnership between DHL eCommerce and Correios de Portugal, an e-commerce logistics provider that does business as CTT Expresso.

The companies said they will work on final steps to establish the joint venture, which is expected to be finalized in May. The partnership, which is expected to generate $1.

15 billion in annual revenue, will create a wide-ranging parcel pick-up and delivery network across the Iberian Peninsula, with a combined daily capacity of more than 1 million shipments.

The joint venture will boost the efficiency and competitiveness of both companies in the e-commerce and parcel market in Spain and Portugal, which represents Europe’s fourth largest market, according to a news release. As part of the transaction, CTT Expresso will acquire DHL eCommerce Portugal.

Grupo CTT will acquire a 25% stake in DHL eCommerce Spain and DHL eCommerce will acquire a 25% stake in CTT Expresso. Both companies will have the option to increase their respective shareholdings up to a maximum of 49%.

In Portugal, CTT Expresso will take over DHL eCommerce’s local operations, ensuring that CTT Expresso becomes the joint processor and distributor of DHL eCommerce parcel volumes in Portugal. In Spain, CTT Express will focus on B2C services, while DHL eCommerce Spain will concentrate on B2B activities.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Write to Eric Kulisch at ekulisch@freightwaves. com.

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