DHL Express and Boeing announced that the global logistics company placed an order for eight additional new Boeing 777 freighters. The investment marks a further step in DHL Express’ expansion of its intercontinental air network to meet customer demand in fast growing international express shipping markets. First deliveries are scheduled for 2022.

Boeing and DHL today announced that the leading international express carrier has placed an order and commitment for 14 Boeing 777 Freighters, and purchase rights for 7 additional freighters. DHL (AeroLogic) Version. Boeing 777-F Generic Type. Boeing 777-200 Basic Type. Boeing 777-200 Manufacturer. D-AALO Location. Cologne / Bonn (- Konrad. Today, DHL Express has announced an order for 8 more Boeing 777 Freighters. First deliveries are scheduled for 2022. Preceding the new order announced today, DHL Express had already taken delivery of the first 10 new 777F aircraft as part of an original order of 14 aircraft made in 2018.

“Although the current health crisis has pushed pause on several areas of life, global trade did not stand still,” said John Pearson, CEO at DHL Express.

“Fuelled by globalisation, digitalisation and the unprecedented demand of our customers during the recent peak season, our global e-commerce volume grew by more than 40% in Q4.

“With the order of eight new wide body freighter aircraft, we underline our conviction that e-commerce is an enduring megatrend. This is why we decided to act early and kick-off 2021 with this investment in our future.”

The B777 aircraft will contribute to DPDHL Group’s sustainability goals due to its fuel efficient technology reducing CO₂ emissions by 18% compared to the legacy B747-400s.

“A highly efficient and reliable aviation network is key to our service capabilities enabling future growth,” says Travis Cobb EVP global network operations and aviation at DHL Express.

“We are committed to providing the highest quality and efficient services to our customers at the fastest possible transit times.

“At the same time, we are also committed to reduce our carbon emissions by modernising our fleet with the most efficient aircraft type that is available in the industry.

“The Boeing 777 fits well into our intercontinental network and perfectly complements our sustainability goal to achieve net zero emissions by 2050.”

The 777 Freighter is the world’s largest, longest range and most capable twin-engine freighter with a range of 9200 km (4970 nautical miles) and can carry a maximum payload of 102,010 kg. It allows DHL Express to make fewer stops and reduce associated landing fees on long-haul routes, resulting in the lowest trip cost of any large freighter.

“We remain optimistic about our growth prospects underscored by the e-commerce boom and as globalisation continues to assert its strength and relevance,” said Ken Lee, CEO of DHL Express Asia Pacific.

“In addition to bolstering the approximately EUR 60 million that we have committed to boost our air network in Asia Pacific from 2020-2022, these continued aviation investment will equally help to ensure that we have the safest and fastest deliveries in the industry.”

Preceding the new order announced, DHL Express had already taken delivery of the first ten new B777F aircraft as part of an original order of 14 aircraft made in 2018.

Boeing’s 2020 World Air Cargo Forecast anticipates significant increase in demand for new and converted freighters with a fleet growth of more than 60% over the next 20 years. This is reflected in the growing demand for cross border time definite shipments that DHL Express is experiencing.

For this reason both companies have also agreed on options and purchase rights for four additional planes.

Dhl Boeing 777 Seat Map

Last week, DHL Express announced eight new orders for Boeing 777F aircraft. And later that day, their 2020 earnings showed why. Lately it certainly seems that whenever we mention new widebodies, the conversation is about freighters…

Boeing 777-200

DHL’s new 777F aircraft will begin to arrive in 2022. At the same announcement, DHL and Boeing agreed on options for four additional aircraft. DHL has already taken delivery of ten 777F aircraft, out of an order for fourteen, in 2018. This marks a significant expansion for the company. It is also part of their drive to improve their efficiency, in their “Strategy 2025” plan.

To this end, the 777F will allow DHL to scale back some of their 747 operations. As we have seen, the 747 is capable of operations that few other cargo jets can do. But this only applies to 747s with that big, gaping front door. DHL operates a small number of 747-400BCF freighters, without this door. While in the current crisis all capacity is welcome, the company will likely retire these jets soon after it.

777F: Efficiency as DHL’s Strategy

DHL considers the 777F a known quantity and a reliable platform. At the same time, it has 18% lower emissions (and fuel consumption) than a 747 freighter. John Pearson, CEO at DHL Express, said:

“Although the current health crisis has pushed pause on several areas of life, global trade did not stand still. Fueled by globalization, digitalization and the unprecedented demand of our customers during the recent peak season, our global e-commerce volume grew by more than 40 percent in Q4.

Boeing 777 Seating Chart

“With the order of eight new wide body freighter aircraft, we underline our conviction that e-commerce is an enduring megatrend. This is why we decided to act early and kick-off 2021 with this investment in our future.”

We have seen that freight operators have done rather well in the pandemic. And they are doing what they can, to sustain their earnings beyond the duration of the pandemic. So, getting newer, more efficient aircraft absolutely makes sense – especially now, that they can afford them. And DHL certainly can afford a few new 777F aircraft, as its preliminary earnings show!

On the same day of the 777F order announcement, the Deutsche Post DHL group announced record 2020 earnings.Their operating profit reached €4.84 billion. Its earnings guidance for the year had been at €4.1-4.4 billion for the financial year. Their revenues for 2020 were up to €66.8 billion. The company attributes its 2020 success to rise in e-commerce growth. The extended peak holiday season near the end of the year was also decisive.

Future-proofing The Group’s Best Performer?

The group’s best performing division is DHL Express, whose operations benefit directly from the new 777F fleet. Their revenues showed an increase of 19%. Frank Appel, the CEO of the Deutche Post DHL Group, said:

“2020 was an exceptional year: despite all the challenges faced, we achieved a record result. Our strategy and business model have proven resilient – even in turbulent times for the global economy. Thanks to the incredible performance of our 550,000 employees all over the world we made a positive contribution to people and societies during the Covid-19 crisis.”

The DP DHL Group’s numbers show that they have the cash flow that enables the purchase of their 777F fleet. At the same time, they are increasing their earnings guidance for 2022. We have seen how other freight companies like FedEx are carefully funding their expansion plans. At the same time, companies converting airliners to freighters are entering the picture.

The good news, for the rest of us, is that when the world recovers from this crisis, perhaps the air freight fleet will be a bit newer and more efficient. Like FedEx, DHL and its 777F order points to that direction. And passenger airliners will be even newer, too…