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DHL to acquire Baltic express services provider Venipak

The DHL Group has inked a definitive agreement to acquire Baltic States-based express services provider Venipak Group in a move that will see it take over Venipak companies in Lithuania, Latvia, and Estonia. Subject to the necessary regulatory approvals, Venipak will become part of DHL eCommerce. Venipak is one of the largest independent parcel operators in the Baltic region, active across both business-to-business (B2B) and business-to- consumers (B2C) delivery segments. Its service portfolio includes international delivery by air. According to DHL, the acquisition will provide it with a well-established domestic delivery network in a region characterised by "strong out‑of‑home delivery adoption and continued growth in e‑commerce". Pablo Ciano, chief executive of DHL eCommerce, commented: "The Baltic States are among the fastest-growing e-commerce markets in Europe today, which is why we were looking for a partner with deep local market expertise, a trusted brand and the ambition to continue growing. "Venipak joins DHL as one of the strongest independent logistics companies in the Baltics, with a valued brand, a highly professional team, well-developed infrastructure, extensive local market expertise, and significant growth potential." Venipak owner Nerijus Raudonis noted: "Today, we are one of the leading independent logistics companies in the Baltic States, and this transaction validates the world-class business we have built. "Together with DHL, Venipak will continue strengthening its market position in the region, providing its customers with even greater opportunities to expand their businesses both domestically and internationally." Venipak chief executive Andrius Ladauskas added: "Joining DHL opens up entirely new opportunities for our customers. We will preserve everything customers across the Baltics value about Venipak today - speed, flexibility, and close customer relationships - while giving them access to one of the world's largest logistics networks. "This means more choice, more convenient international shipping and returns, and even greater opportunities for Baltic businesses to expand into international markets." Following completion of the transaction, Venipak will gradually become part of DHL Group's global logistics network, while continuing to operate under its existing brand identity. Earlier this month (July), the DHL Group increased its operating profit outlook for the year after preliminary results for the second quarter showed a strong improvement on last year led by the express division. The Bonn-headquartered parcels and logistics group said that business development in the second quarter showed continued growth and, consequently, positive earnings momentum. "Compared with the prior-year quarter, which had been impacted by customs and other trade policy conditions, the group recorded a return to significant revenue growth," DHL said. DHL eCommerce reported earnings before interest and tax (ebit) of around €50m compared with €56m last year after a non-recurring positive effect of around €20m related to M&A was offset by other negative non-recurring items.

Changes to US postal requirements may cause problems

The changes in de minimis rules in the US are creating complexity and problems for many and the difficulties are continuing to broaden in scope. David Taylor, global commercial director at London-based e-commerce logistics specialists Mark 3 International, pointed out: "In the 12 months since President Trump signed the executive order suspending duty-free de minimis treatment for all countries, the trade environment has become increasingly challenging for exporters." For example, on 1 July the EU introduced a temporary €3 customs duty on low-value parcels imported from outside the EU, mainly through e-commerce. EU member states agreed in December to introduce the customs duty charge per item on parcels valued below €150. And, in late June, in response to the indefinite suspension of the $800 de minimis exemption, US Customs and Border Protection (CBP) introduced new postal informal entry procedures. This new process, known as Entry Type 13, has been established to bring international mail into parity with other American entry modes, Taylor noted. The new rules are intended to meet three goals; "Firstly, to capture duty revenues that were historically exempted; secondly, to use richer data to screen for admissibility and IP [intellectual property]/consumer-protection violations; and finally to disrupt narcotics smuggling that CBP argues is concentrated in the low-data, low-scrutiny postal channel." The so-called 'interim final rule' came into effect on 24 July and is expected to present a series of challenges for UK exporters amongst others. Postal entries into the US that previously only attracted the 10% Section 122 duty are now subject to all applicable duties. Moreover, while the International Mail Duty Worksheet (IMDW) continues to be used for the moment, there are enhanced data requirements and new levels of complexity are being added. The IMDW is used by carriers and mail operators to declare and pay import duties on international postal packages. It must be submitted monthly to CBP along with duty collections. Taylor observed: "While the IMDW process remains in place for now, businesses need to prepare for more detailed compliance requirements. "Logistics customers are already experiencing greater costs, worsening service, and greater uncertainty, and this will almost certainly impact importers, and the end consumers. "Compounding this is the fact that many of the larger carries and postal companies are still poorly equipped to deal with such a seismic change." He noted that according to a recently published factsheet from the UK Government, there has been a decrease of 10.3% (£6.8bn) in UK exports of goods to the US over the last year. Taylor concluded: "While UK exports of services have risen in recent months, the exporting of goods to the US has already declined sharply. "The changes which the industry is going to experience in the next three months - and possibly longer - will make this process even more difficult. "As a result, it's vital that British exporters find trusted partners who can best navigate these complex and evolving changes in the market. By doing so, they reduce the burden on importers and ultimately improve their commercial competitiveness."

Forwarders facing dynamic pricing as airlines aim for maximum yield

Airlines are increasingly adopting dynamic pricing, while fragmented booking channels and inconsistent data are making it harder for forwarders to quote customers and secure capacity. Christos Spyrou, chief executive and founder of Neutral Air Partner, told The Loadstar Podcast airlines were increasingly shifting to dynamic pricing, either through their own or third-party digital portals. "They're going on the lower yield with the ecommerce and then offering the rest of the capacity on the spot market with dynamic rates to spot price and to maximise yield," he explained. He added that this trend was happening across "most of the world's top 20 international cargo airlines", especially on the main global tradelanes. "Airlines want to react faster to market demand and maximise yields, so they are relying more on dynamic pricing and spot sales instead of fixed long-term rates. Long-term agreements are still important for strategic customers, but they are becoming more flexible and usually include dynamic pricing elements." Mr Spyrou said the move had fundamentally changed the way freight forwarders buy capacity, with rates and availability increasingly varying between airline websites and third-party booking platforms. He explained: "You need to log into three or four different platforms - the airline's and then on booking platforms for rates and capacity, the top three or top four well-known ones, and then you end up seeing completely different rates for the same flight, and different capacity on different portals, when you book, for example, cargo on a wide-body aircraft. "It turns out there is a narrow-body aircraft. They cannot move your cargo, and then the system automatically rolls-over your cargo in the next seven to 10 days. "You have no human to talk to, no customer service. That creates a huge, huge problem in the industry, and for the freight forwarder." According to Mr Spyrou, this is because airlines might choose to allocate different inventory to different sales channels, and not all booking platforms update at the same time. Meanwhile, some rates are based on special commercial agreements, while others are spot market prices. "There is also a perception among some forwarders that certain booking platforms apply their own mark-up on selected airlines or tradelanes, which may explain why the same flight is offered at different prices. More transparency from both airline and booking platforms would certainly help build trust," he said. This was echoed by Aircon CEO and founder Chris Condon, who agreed that fragmented information had become an industry-wide issue. "Freight forwarders increasingly need to check airline portals, booking platforms, direct agreements, emails, and other sources. Those sources may not match because they reflect different contracts, validity periods, surcharges, service conditions, and update cycles," he told The Loadstar. Further, Mr Condon urged, dynamic pricing shortened the lifespan of a quotation, meaning that knowing which option can actually be sold, booked, and delivered as promised becomes a challenge. "A rate may be accurate when it is sourced ,but no longer available when the customer says yes, leaving the forwarder to absorb the difference, reprice the shipment, change the service, or return to the customer with another option," he explained. "Dynamic pricing makes the forwarder's judgment more important. The rate is only one input. The decision is the promise the forwarder is prepared to make based on what that particular customer values -- cost, speed, reliability, or flexibility." Mr Spyrou also highlighted the operational issues when digital booking systems failed to reflect actual aircraft availability. "It still happens, more often than it should, especially during busy periods or when flights are overbooked. In my experience, it happens more often with airlines that manage their own cargo sales rather than those using professional GSAs, as they usually have better control of capacity and closer communication with customers. General cargo is normally the most affected, while premium products and urgent shipments receive priority." He called for better integration between airline systems and digital booking platforms, but stressed technology should complement rather than replace customer service. "I would like to see better real-time capacity updates, faster synchronisation between airline systems and booking platforms, and more transparency when capacity changes," he suggested. "At the same time, airlines should never forget that air cargo is still a people business. Digital booking platforms are a great tool, but they cannot replace experienced cargo teams who can solve problems, communicate quickly, and support customers when things go wrong. The best solution is a combination of digital efficiency and strong human support." Mr Condon suggested that digital platforms should illustrate clearly where the rate came from, when it was retrieved, what is included, whether space is indicative or confirmed, and what may still change before booking. "The goal is not to create false certainty. It is to give the forwarder enough context to make a quote it can confidently stand behind," he added.