DP World purchases 47,000 TEUS to boost capacity and improve the customer experience
Posted on Oct 21, 2024 at 08:10 PM
The massive ports and logistics corporation DP World, located in Dubai, announced the purchase of 47,000 TEU of new containers that would be registered and branded under its name.
Moreover, the action, which has been called a corporate first, is to increase the port operator's cargo capacity and improve its ability to respond to client requests.
The containers are registered under the Unifeeder brand of DP World, per the Bureau International des Containers et du Transport Intermodal (BIC) code.
Enhancing Supply Chain Resilience
According to DP World, the investment would make it possible for its clients to access vital container capacity during times of high demand and unforeseen interruptions, reducing delays and enhancing supply chain resilience.
DP World also hopes to save operating expenses by purchasing these containers since its younger fleet would require less upkeep.
Given the security issues in the Red Sea, many container shipping lines have redirected their routes around the Cape of Good Hope, exacerbating the container capacity constraint that the global container shipping market is currently experiencing.
In particular, there have been difficulties in satisfying demand because of the Red Sea situation, heavy export traffic from Asia, traffic jams at important transhipment hubs, and lower productivity from prolonged travel.
Long-Term Vision of DP World
A great deal of containers wind up being delayed on their return to vital Asian industrial centres by spending a considerable amount of time in North America and Europe, where imports outweigh exports. This has been a major factor in CAI International's recent investment in containers.
Furthermore, the Port of Montreal delays, Canadian rail worker strikes, and recent union strikes, particularly from the International Longshoremen's Association (ILA), have exacerbated congestion and capacity issues in the East and Gulf Coasts.
According to Ganesh Raj, Global Chief Operating Officer, of Marine Services at DP World, “In today's increasingly complex and competitive commercial environment, supply chains are under growing pressure. This injection of 47,000 TEUs into the existing ecosystem of DP World-owned assets will help our customers access the capacity they need, safe in the knowledge that their goods will be moved from end to end with a single partner.”
The company announced the opening of a global forwarding network in March and acquired Cargo Services Far East in Hong Kong in September, aiming to have over 200 forwarding offices worldwide.
Besides, DP World plans to expand London Gateway by £1bn ($1.3bn) to become the UK's largest container port within five years.
DP World affirms that its owned assets cover every aspect of the multimodal logistics supply chain, including electric shuttle carriers, HVO trucks, digital wallets, warehouses, economic zones, and specialised pharma-grade cold storage locations, covering 78 countries on six continents.
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