Logistics

Forwarding | Warehousing and Distribution

DP World shuns asset-light model in rapid expansion of forwarding unit

By Greg Knowler

DP World has significantly expanded its end-to-end logistics capability , opening 100 forwarding branches around the world in the past eight months in a calculated move away from the traditional asset-light approach of most global forwarders .

The Dubai-headquartered global port operator said it is integrating its infrastructure ownership in terminals , warehouses , rail and trucking around the world into the expanded forwarding product .

“ We are building a network that will cover more than 90 % of global trade .”

“ Our asset-appropriate approach is a step-change for the freight forwarding industry that puts customers in the driving seat with more visibility and control and giving them confidence to trade in today ’ s global market ,” Beat Simon , group CCO for logistics at DP World , said in a statement March 12 .

DP World noted that the asset-light forwarding model that moved cargo via third parties was susceptible to disruption at key chokepoints , which has knock-on effects for inventory and fulfilment planning for businesses and their customers . The terminal operator said cargo owners were seeking greater control of their shipments from end to end and looking for resilience to withstand supply chain disruption .

“ We are building a network that will cover more than 90 % of global trade ,” Simon added .

Miami is the latest forwarding office to be added to the DP World network that includes order and origin management , port handling and freight management for ocean and air . At-destination services include customs , drayage , logistics , last-mile delivery , deconsolidation and bonded warehousing .

DP World said its end-to-end logistics offerign will be supported by proprietary digital technology and a single window that will enable shippers to track their goods in real time and manage their supply chains .

Port operator spending spree

Other port operators are also making significant investments to take control of cargo outside their traditional container terminal areas . Singapore-based PSA ’ s 2022 acquisition of forwarder BDP International ( PSA BDP ) added contract logistics , air cargo and container slot capacity as a non-vessel-operating common carrier operating in 39 countries . That reach enables PSA BDP to offer shippers more routing options through rail-connected marine terminals and inland hubs .

Manila-based International Container Terminal Services Inc . ( ICTSI ) and APM Terminals are investing heavily in both terminal and logistics capabilities in anticipation of growing trade and sourcing shifts .

ICTSI is investing in the emerging markets where it is deeply embedded , while APM Terminals , a unit of the A . P . Møller-Maersk group , has been rapidly expanding new and existing infrastructure in its terminal portfolio in both emerging and developed markets over the past year .

email : greg . knowler @ spglobal . com

DP World now has 100 forwarding branches in addition to its global network of port terminals . Shutterstock . com

34 Journal of Commerce | March 25 , 2024 www . joc . com