What challenges and opportunities does operating in China present?

China is such a fascinating market because it’s both the world’s workshop and an innovation powerhouse. Sure, everyone talks about places like Shanghai as export hubs, but what really gets us excited is how cross-border e-commerce is changing the game. In 2024, cross-border e-commerce alone hit ¥2.6 trillion (US$350 billion), up a full trillion since 2020.

China’s digital systems, such as the ‘Single Window’ platform, is helping us stay ahead and lets us clear shipments around the clock. In a market this dynamic, things can change rapidly. What makes China so special is how it keeps pushing us to innovate. Just when you think you’ve got it figured out, new opportunities emerge.

You became CEO for the Greater China Region last summer. What’s been your focus so far?

We’ve doubled down on sectors where China is leading the global charge, particularly in electric vehicles, alternative energy, life sciences, healthcare and e-commerce. What excites me the most is our work with small and medium-sized enterprises (SMEs) in these sectors. These companies are agile, tech-savvy, and ready to go global. 

We’re innovating around mature products, countering the volatility of the ocean freight market. We’re optimising LCL (Less than Container Load) gateway configurations, establishing flexible routing to enhance direct box utilisation and exploring ways to leverage smaller port resources for niche market development. The goal is to be the partner that can anticipate the changing demand.

What does the launch of the new EV Center of Excellence mean for DHL?

Our EV Center of Excellence (COE) in Shanghai isn’t just a warehouse – it’s where we’ve pooled all our EV knowledge, specialists and tailored services. It taps into our Greater China network and global footprint to serve as a launchpad to help manufacturers export globally.

The COE includes a battery consolidation warehouse with certified personnel for dangerous goods, a dedicated reefer charging area with over 150 slots, and monitoring systems for temperature and humidity, critical for battery safety. We also provide value-added services for finished vehicles, such as battery checks plus consolidation for ocean freight.

Why invest so heavily in the electric vehicles sector?

We can’t talk about EVs without talking about China – it’s far and away the world’s biggest market. Between the government’s strong push for cleaner transport and consumers rapidly adopting EVs, watching this sector take off has been incredible.

China isn’t just leading in EV sales, with a record 11 million units sold in 2024, it is also driving global innovation in battery tech and charging infrastructure. China houses the world’s largest network of over 10 million charging stations, which grew 56% year-on-year in just the first half of 2024. This investment is being driven by customer needs.

DHL has committed to making ‘every dimension of its business sustainable’. What does that mean for the Greater China region?

Sustainability is a core part of our Strategy 2030. Our customers increasingly want environmentally friendly options, and we’re making sure we lead in that area. 

In Greater China, we’re supporting DHL Group’s global goals to cut greenhouse gas emissions, switching to sustainable aviation fuels, using electric trucks, and building carbon-neutral facilities. We already operate an electric fleet of trucks and tractors at our Shanghai site. For customer emissions we have a GoGreen Plus service, using biofuels that reduce carbon output by up to 80%. More than 1,000 customers in Asia are already on board. 

Is the availability of low-carbon fuels a concern?

It’s a classic Catch-22: sustainable fuels are expensive because they’re scarce, and they’re scarce because they’re expensive. Many buyers are hesitant to pay a premium, which slows production scale. That’s why we’re collaborating with forward-thinking partners like Prada Group, Formula 1, and IAG Cargo to boost demand. 

How are you managing the complexity of multimodal freight forwarding across such a large region?

We leverage digital tools to give customers real-time visibility and control over their shipments. It’s all about transparency and enabling proactive decision-making. We also offer flexible multimodal options to find the most efficient routes depending on cost, timeframes, and market conditions. 

In an era of geopolitical instability, how is DHL Global Forwarding navigating these challenges?

We remain optimistic. While geopolitics dominate headlines, global trade continues to find ways to grow. We’re investing in diverse, high-growth sectors like e-commerce, life sciences, healthcare, and clean energy.

For example, DHL Group recently announced a €2bn (US$2.29bn), five-year investment to boost our Life Sciences & Healthcare capabilities, with €500m (US$574m) allocated to Asia Pacific. This commitment reflects our confidence in these growing sectors.

With the US set to impose steep new tariffs, how is DHL adapting its strategies?

Uncertainty is part of the logistics landscape. Nobody has a crystal ball when it comes to tariffs and trade. They may slow certain trade lanes but often create new demand, for example, in customs services or alternative routing. Our global network is incredibly agile. When one lane closes, we help customers find new ones through alternative sourcing locations or different transport modes.