DHL has announced the launch of its direct Less than Container Load (LCL) service from Shanghai to Karachi, making it the first direct LCL service to connect China and Pakistan.
The new direct weekly LCL service, operated by Danmar Lines, the in-house carrier of DHL Global Forwarding, reduces transit time by seven days to 18 days, and will help China-based exporters better tap into the growing business opportunities in Pakistan as China strengthens trade ties with its Asian neighbour, said a report appeared in UK based Analytiqa, a market analysis and business intelligence company providing published reports, custom research and consulting for multi-national clients.
In addition to shipments arriving earlier, the new service reduces CO2 emissions by approximately seven percent. China and Pakistan signed a Free Trade Agreement (FTA) in November 2006 which projected to triple bilateral trade to dollars 15 billion by 2015. In 2010, the trade volume between China and Pakistan had already doubled from 2005 levels, and exceeded dollars 8.6 billion, a high 27.7 percent growth compared with 2009.
Nestled between China, India and the Middle East, Pakistan is in one of the world's fastest growing regions and is an important trade route. Multiple trade, transport and energy corridors between Pakistan and China connect the region to South, West and Central Asia. With existing road, rail and air links, the new direct sea freight service between Shanghai and Karachi will add even greater scope to this expanding trade relation between the two countries.
Shorter distances and reduced facility handling also make LCL shipments to Pakistan more efficient than the standard shipments. Additionally, launching this new direct LCL service will help further enhance the competitiveness of Shanghai in the international shipping market.