DHL is enhancing its role as the exclusive official logistics partner of the Council of Fashion Designers of America (CFDA), the trade association that represents 474 women’s wear, men’s wear, accessories and jewelry designers.
At the same time, DHL Express and Cargojet Inc. announced they have entered into a new long-term strategic agreement that will strengthen the global DHL aviation network.
The CFDA partnership is geared toward helping fashion businesses capitalize on opportunities to grow worldwide through DHL’s extensive express shipping network.
“We are looking forward to expanding our work with CFDA and helping industry players from emerging designers to fashion industry leaders strengthen their global reach,” said Christine Nashick, chief marketing officer for the Americas region at DHL Express. “As the needs of designers, manufacturers and consumers continue to evolve and heighten, our partnership with CFDA has become increasingly valuable for members and we are happy we can support them in their expansion efforts.”
Expanding its commitment as a logistics partner for the fashion, luxury goods and retail industries, DHL will host a four-part professional development series, diving into different key industry areas and best practices to enhance the sustainable supply chains for businesses of all sizes. As part of the partnership, one emerging designer will also be named the winner of the DHL Logistics in Fashion Award. The winner will benefit from extended mentorship opportunities and a $15,000 grant to further the designer’s business internationally.
“Fashion is a global industry and CFDA member designers rely on a worldwide supply chain network, which has recently become more difficult to navigate,” CFDA CEO Steven Kolb said. “With our continued partnership with DHL, we are able to provide our talents with information to mitigate potential challenges.”
DHL will also sponsor the CFDA International Buyers and Editors Program. Emerging brands that showcased their collections during New York Fashion Week, including on CFDA’s RUNWAY360 virtual platform, will benefit by being introduced to international editors and buyers, helping strengthen their global presence.
CFDA members and interim members will also receive exclusive shipping rates and access to DHL Office Hours, where they can work directly with DHL shipping and logistics professionals and receive expert guidance regarding their global supply chain.
The five-year agreement with Cargojet, with a renewal option for an additional two years, will see Cargojet provide aircraft, crew, maintenance and insurance (ACMI); crew, maintenance and insurance (CMI), charter and aircraft dry lease services to DHL to support the carrier’s international requirements for Europe and North, South and Central America, as well as Asia.
Cargojet currently utilizes 12 freighters to service DHL’s requirements and DHL intends to add five B767 freighters during the 2022-23 timeframe to fulfill its anticipated network requirements, building on the rapid expansion of the company’s air network in the last two years. In the Americas, DHL increased its overall aviation capacity 18 percent for the 2021 peak season in response to surging demand, particularly in the e-commerce segment. It recently started a new weekly air connection from Vietnam to the U.S., adding 102 tons of additional capacity for customers shipping out of Asia into the Americas.
“Cargojet is an important aviation partner of DHL in North America and we see this expansion of our relationship further strengthening intra-regional and intercontinental links to and from this region,” said Mike Parra, CEO of DHL Express Americas. “Its versatile cargo fleet and high on-time reliability positions us well to further capitalize on the dynamically growing e-commerce market, in particular. This step builds on the significant investments we have made in DHL’s aviation capacity and capabilities over the last two years in the Americas.”
DHL also intends to be Cargojet’s inaugural launch customer for the state-of-the-art B777 wide body long-range conversion cargo aircraft that are expected to be deployed in late 2023 or early 2024. The more fuel-efficient freighter will support DHL’s efforts to improve the carbon footprint of its transportation operations while enabling customer growth.
Since 2018, DHL has purchased 28 new Boeing 777F to add to the company’s global fleet, many of which serve points between the Americas region and the rest of the world.
“DHL’s international aviation network is a true competitive differentiator and an enabler of growth for our customers. Cargojet’s ‘customer first’ culture has added flexibility and resilience to our network,” said Travis Cobb, EVP, Global Network Operations & Aviation, DHL Express. “A longer-term strategic alignment with Cargojet will bring additional capacity and allow us to continue delivering the highest levels of service quality to the market.”
In addition, to align interests and strengthen the long-term strategic relationship, Cargojet, which trade its shares on the Toronto Stock Exchange, will issue to DHL warrants to acquire up to 9.5 percent of Cargojet’s outstanding voting shares at a price of $158.92 (Canadian) per share over a period of seven years, with vesting tied to the delivery by DHL of up to $2.3 billion (Canadian) in business volume during the same term.