DHL has no plans to merge forwarding and supply chain units

One of the major takeaways from a recent DHL Global Forwarding, Freight (DGFF) webinar on company strategy, AI, and the market outlook was that, contrary to speculation, there were no plans to merge the unit with DHL Supply Chain (DSC) but that greater collaboration between the two was in the cards.

Addressing the virtual briefing, new CEO Oscar de Bok highlighted the example of DGFF and DSC teaming up to best serve a high-tech client. This saw them manage both air freight and a distribution center. Getting the two units to work in tandem was “not rocket science,” he explained, adding that going forward they would increasingly operate in concert.

However, there were no plans to merge DGFF and DSC, which will remain separate entities, the emphasis being on “better collaboration,” revealed de Bok, who had headed DSC before taking up his current post this summer.

Asked about the potential benefits from stronger ties between the two units, such as growth opportunities and margin improvement, de Bok noted that they could include closer linkage when it came to long-term contracts.

A People Business

The impact of AI on the sector was unsurprisingly a topic for discussion at the webinar, which took place shortly before DHL announced an acceleration in its enterprise-wide AI strategy through a new partnership between DSC and the AI startup HappyRobot.

De Bok put the accent on what he saw as a vital element in forwarding: customer care. This was indeed "the fun part of the job”, an indicator that forwarding was and would remain “a people business.”

AI offered scope to increase productivity, but a crucial aspect of its deployment was how staff were to be freed up from tasks that could be carried out by robots or generative models. It was not simply a matter of replacing an activity undertaken by people but rather about optimizing activities as a whole through the use of generative AI, he observed.

Also present at the webinar was DHL’s SVP Global Customs, Greg Nichols, who said AI, along with the group’s other tech solutions, was contributing to a significant reduction in the average clearance time for goods.

He quoted the example of a medical device manufacturer where a 60% drop in the time taken to clear products had been recorded.

Focus on High-Margin Verticals

Also participating in the webinar was DGFF’s Chief Commercial Officer, Amanda Rasmussen, who, focusing on market conditions, pointed to a number of geopolitical factors that were impacting ocean freight. Air freight, meanwhile, was “relatively resilient but capacity is tight” for freighters, she said.

Rasmussen went on to highlight the unit’s strategy of targeting high-margin verticals such as pharma and healthcare, life sciences, and Aerospace & Defense.

She also drew attention to DHL’s unique portfolio, encompassing express, supply chain, and global forwarding, which in a challenging environment represents "capabilities that are second to none.”

CEO de Bok also referenced the group's competitive advantage in having asset-based facilities such as an end-to-end cold chain, which benefits verticals such as healthcare.

Low Volume Momentum

DHL recently presented its third quarter (to end-September 2025) results, which showed a decrease in both DGFF's revenue and earnings, which it said reflected low volume momentum and weak economic conditions in Europe.

Revenue fell by 9.2% to €4.57 billion while EBIT was down by almost 30% to €195 million.

DGFF’s ocean volumes dipped 0.5% to 854,000 TEU. Air volumes were flat too (-0.2%) at 444,000 tonnes.

Not Where We Want To Be

Speaking at a Q3 result investor conference call, DHL Group CFO Melanie Kreis said that the DGFF had experienced “similar market dynamics as our peers. In comparison, we have been performing relatively well in the quarter with underlying ocean freight volume growth of 5% and increases in gross profit and gross profit per tonne in air freight, both year over year and quarter over quarter, all leading to forwarding EBIT being up versus Q2.”

She continued: “That being said, we are clearly not where we want to be with DGFF, and Oscar de Bock is implementing structural improvements.”

DHL’s supply chain unit, DSC, fared better with revenue down slightly (-0.4%) year over year to €4.41 billion. EBIT was up 1.6% to €278 million.

“DHL Supply Chain continues to perform very well,” Kreis noted, despite “somewhat slower growth in current circumstances with both currency headwinds as well as impacts from the general environment.”

However, she underlined that the structural growth tailwinds were intact for the unit, “as reflected in very good new business signings with €1.4 billion in new contract value in Q3. One of the key drivers of these customer wins, as well as a strong 6% plus margin, is our leading digitalization, automation, and standardization setup.”