Silk Way West Airlines (SWW) is to start a twice weekly freighter service to Tianjin connecting its global hub in Baku, Azerbijan, with one of the leading industrial centres in northern China.
The service will close the strategic gap in the carrier’s network by offering full freighter services to booming Northern China, said Wolfgang Meier, SWW president.
“We have noticed a strong demand east and west bound with automotive and aerospace related goods leading the commodity list. Throughout the whole planning process there was a great cooperation with representatives of Tianjin Airport in order to set up the new flight for us for which we are thankful.”
The service will run every Friday and Sunday, connecting through the SWW Baku hub to more than 45 destinations in China, Central Asia, the Middle East, Europe, Africa and North America.
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Parcel delivery company DPD has today opened the UK’s first all-electric parcel depot in the heart of Westminster and announced plans for a further seven all-electric sites in the capital.
London’s Deputy Mayor for Environment and Energy, Shirley Rodrigues, said: “London’s toxic air contributes to thousands of early deaths each year and is putting the health of children at risk so it’s good to see businesses like DPD preparing for the Ultra Low Emission Zone (ULEZ) and helping protect Londoners’ health by transforming their delivery fleet.“
The new 5,000 sq ft facility on Vandon Street will be known as DPD Westminster and will have capacity to deliver 2,000 parcels a day utilising an all-electric fleet. DPD has invested over £500,000 refurbishing the site including the introduction of a state-of-the-art electric charging system that will enable the deployment of electric vehicles without major infrastructure upgrades.
Using all-electric vehicles in both the inward feed of parcels to DPD Westminster, and the final delivery to customers, DPD will initially see a reduction of 45 tonnes of CO2 per annum. This will increase as more all-electric vehicles and depots are introduced into the DPD’s all-electric network.
DPD has deployed three new types of all-electric vehicles to operate the depot. Two all-electric Mitsubishi Fuso eCanter 7.5t vehicles will feed parcels into the depot each day, while the final mile deliveries will be completed by two different all-electric vehicles.
DPD has initially bought 10 Nissan eNV200 all-electric vans capable of making 120 stops a day, and DPD Westminster is running seven of these currently. DPD has also deployed eight micro-vehicles from Norwegian manufacturer Paxster at the Vandon Street site and has a further 23 on order. The Paxsters are delivering to the immediate area around the depot and are expected to operate 60 stops on one charge per day.
Dwain McDonald, CEO of DPD commented: “Reducing and neutralising our carbon footprint; providing smarter and more efficient urban delivery solutions and driving innovation are at the heart of DPD’s DrivingChange programme. We want to be the leader in alternative fuel vehicles in the UK, with the ultimate aim being to move to a zero emission fleet.
“Westminster is clearly the first step towards that goal and will be instrumental in developing our future EV proposition and strategy. DPD Westminster is an outstanding location and the vehicles are fantastic. We looked at a wide range of options before making our decision and we’ve been testing these three models extensively in recent months. In terms of reliability and performance they have been excellent.
“There are still significant external issues to be overcome in terms of the infrastructure to support an all-electric fleet on the scale we need, across the whole of central London. But I’m delighted with our proposition here and we will continue to work with the key stakeholders to realise our aims and support the Mayor of London and TfL’s ambition for a cleaner and less congested capital.”
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Same-day courier company CitySprint has launched Freight Desk – a delivery service for oversized, heavy and difficult-to-handle items.
Paul Gisbourne, CEO at CitySprint, commented: “We recognise that in today’s economy, speed, reliability and convenience are of the utmost importance to businesses in every industry, but that moving bigger items to support this can present logistical challenges.”
He continues: “Our new Freight Desk service is specifically tailored for the transportation of large and bulky items over 100kg and is a great addition to our current offer for our customers. Our nationwide local network means we can offer real agility, speed and flexibility to customers with ad hoc and ongoing haulage needs — both across the UK but also to countries within the EU.”
Customers can book Freight Desk deliveries same-day through the service, although advance bookings are always encouraged.
CitySprint’s freight and haulage fleet currently includes the following vehicles:
Artics (ideal for consistently large loads)
7.5 and 18 tonne trucks
Luxon Box and Curtain Sider vans (available with or without tail lift)
In addition to these, the Freight Desk is also able to source both refrigerated and heated vehicles in a variety of sizes — from small vans to artic and ADR vehicles — which are in high demand.
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Download now: The new print edition of DHL Freight Connections comprises the most important stories of the last quarter.
What’s really going on in logistics? DHL Freight Connections does know the facts and reports online about the most important occurrences and trends. In regular intervals a summary is published as a printed edition.
Connected supply chain: DHL Freight significantly expanded it’s partnership with BMW Group
Loading times: a snag at the ramp
Fixed Delivery Day: reliable option
Trend radar: future of logistics
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Container shipping line CMA CGM has raised its stake in CEVA Logistics from 24.99% to 33% of company shares following the failed takeover approach for CEVA by Danish logistics giant DSV.
CMA CGM, the world’s third largest container shipping group, has also announced an “additional economic exposure of 4.56%” in CEVA Logistics’ share capital.
The increased share purchase by CMA CGM came after the CEVA Logistics board rejected DSV bid of CHF27.75 per share in cash, which valued CEVA, quoted on the Swiss stock exchange, at around $1.5bn.
CMA CGM’s duty to not increase its holding above the current 24.99% of the share capital until 5 November, 2018 was amended to allow it to increase its holding up to one third of the voting rights with immediate effect.
In a statement today, CEVA Logistics stated: “The company [CEVA] and CMA CGM are deemed to be acting in concert due to the relationship agreement between the parties entered into in the context of the initial public offering (IPO).
“The company has further been informed that CMA CGM entered into a derivative transaction related to the shares of the Company with cash settlement (Total Return Swap) giving CMA CGM an additional economic exposure of 4.56% in CEVA Logistics’ share capital.
“A formal disclosure notice disclosing the combined shareholdings of the group is expected to be published simultaneously.
“The duty to launch a mandatory takeover offer is triggered only if a shareholder holds a position in shares of more than one third of the voting rights of a company.”
A statement by CEVA at the time of the unsolicited approach by DSV said that the proposal “significantly undervalues” CEVA’s prospects as a standalone company.
In response, DSV said: “The proposal would provide CEVA shareholders with an attractive premium of 50.7% to CEVA’s share price of CHF 18.42 as of 10 October 2018.”
DSV added that it has “long respected and followed CEVA’s business and believes combining the two companies would deliver significant value to all stakeholders (including shareholders, employees, customers and suppliers)”.
Headlines such as “Many sickened by foodborne illness linked to lettuce” and “Bagged salad recall” tend to attract extensive media coverage. Following these reports, the search to find out who is responsible for the illnesses begins. Did something go wrong when it was being grown? Was it properly transported, or did it spoil on the shelf? No matter the case, the outbreak was a danger to consumers, and that’s not the kind of publicity any business wants.
Due to the rising number of foodborne illnesses in the early 2000s, Congress decided it was time to make improvements. The new regulations set higher standards for handling food throughout the supply chain, and since June 2017, companies transporting food have been required to comply with the Food Safety Modernization Act (FSMA). This presented challenges such as increased accountability, improved monitoring of the supply chain, quicker adoption of best practices and more collaboration within the industry.
For the transportation and logistics industry, this meant they had to find new ways to ensure trucking companies were compliant with the newly formed laws. There are certain steps that shippers and carriers can take to guarantee they are following regulations, and there are ways to improve business operations, such as using a solution to improve supply chain monitoring and relations with carriers. These steps can go a long way in enhancing the supply chain and preventing foodborne illness outbreaks due to poor or improper transportation.
Advancing Food Safety
FSMA is transforming the nation’s food safety system by shifting the focus from responding to foodborne illness to preventing it. Congress passed FSMA in response to dramatic changes in the global food supply chain and in our understanding of foodborne illness and its consequences, including the realization that preventable foodborne illness is both a significant public health problem and a threat to the economic well-being of the food industry.
FSMA was signed into law by President Obama in 2011, but it wasn’t until June 2016 when the most recent amendment affecting transportation was finalized, with it initially going into effect in 2017. The law became the first major legislation addressing food safety since 1938; it was deemed necessary due to several foodborne illnesses during the first decade of the 2000s. One of the main reasons the legislation passed through Congress so quickly was due to the support and sponsorship of the Grocery Manufacturers Association. The outspoken organization was aware of how much money illnesses cost the food industry—billions of dollars in recalls, lost sales, insurance fees and legal expenses.
But that is not to say the transportation industry didn’t have regulations in place already. In 2005, the Sanitary Food Transport Act (SFTA) was enacted, and established the groundwork for shippers and carriers keeping records on the transportation of food. It required the U.S. Food and Drug Administration (FDA) to determine sanitary transportation practices to ensure that food (including animal feed) transported by motor vehicle or rail was not transported under conditions that may adulterate the food. And, while the SFTA stated that trailers should be cleaned, there were no guidelines on how that process should be done or how often. The new FSMA was intended to supplement the SFTA, not replace it.
The FDA finalized five main rules to implement FSMA, recognizing that ensuring the safety of the food supply is a shared responsibility among many different areas in the global supply chain for both human and animal food. The rules are intended to define specific actions that must be taken in each of these areas to prevent contamination. While there are exceptions, such as the exclusion of small farms, ranches and local processors from federal oversight, the trucking industry has to follow strict regulations to ensure that food is properly handled throughout the transportation process. This includes:
Temperature control/tracking: For refrigerated products, every storage compartment must be pre-cooled and have a temperature-monitoring device. Shippers must also define temperature specifications to be met throughout transportation.
Temperature certification/data exchange: A log of temperature conditions for the duration of the transportation must be provided to the receiver/shipper by the carrier upon request.
Cleanliness: Vehicles must be maintained in a sanitary condition and are subject to inspection. Loading/unloading stations must have hand-washing facilities.
Training: Carriers must provide basic sanitary transportation practice training to their personnel.
Data retention: All records must be stored for a period of 12 months.
While transportation is just one aspect of the supply chain in the food and beverage industry, it is an area that is just as important as any other. Considering that transportation is one-third of the supply chain—from farms to stores and restaurants before reaching the end consumer—all parties are tasked with working together under the regulations outlined by FSMA to ensure that food reaches consumers in a safe manner and to prevent foodborne illnesses.
New regulations mean changing outdated operations, and the trucking industry has shown that it struggles to adopt new practices. One challenge that has plagued the industry for years is the lack of collaboration between shippers and carriers. This is a constant battle when food transportation is involved, because whenever a widespread foodborne illness outbreak occurs and points back to the transportation of the product, shippers and carriers consistently try to shift the blame. When neither party is working together, an outbreak is more likely to take place.
Another challenge that the trucking industry faces is adhering to the food product transportation parameters that are outlined in a shipper/carrier contract. Most foods have certain transportation guidelines, largely involving transport temperature range. By law, shippers are required to monitor the condition of their product as it travels through the supply chain until it reaches the customer. However, some carriers don’t have the systems in place to track trailer temperature conditions, which creates further division between shippers and carriers.
The main challenge of FSMA compliance is ensuring that no freight is lost to foodborne illnesses by making sure that it is loaded correctly and not potentially contaminated during transportation. If the regulations aren’t followed, the FDA has three primary mechanisms for enforcement when it comes to imposing direct penalties for non-compliance: re-inspection fees totaling about $225 per hour, product recalls or suspension of facility registration. These consequences can be disastrous for shippers and carriers alike, not only because they lose revenue, but also because it hurts their reputation during future transactions.
Before freight visibility solutions were available, shippers were unaware of what was going on while a shipment was in the hands of the carrier. Consequently, if a foodborne illness was linked to the transportation of the food or beverage, the shippers would automatically blame the carrier. But the addition of FSMA, along with the advent of visibility solutions, has shifted the burden of responsibility back to the shippers. They are required to know how their product is handled at all times within the supply chain.
However, more is at stake than knowing who is responsible for a foodborne illness, because sometimes it isn’t linked to the transportation process. Both shippers and carriers should be aware that foodborne illnesses cost the United States an estimated $152 billion per year in healthcare, workplace and other economic losses, according to a report published by the Produce Safety Project.
When a foodborne illness is detected, all of that specific product is lost, which sends ripples down the supply chain. Shippers not only lose the potential earnings from product sales, but they also must discard any of the merchandise that is still in transit. An added economic loss occurs when their goods aren’t on the shelf, and a consumer chooses the competitor’s product. They may continue to purchase the competitor’s merchandise even after the shipper’s product is deemed safe, which results in the continuous loss of customers.
If the illness is linked to the transportation process, the carrier is hit hard. They will lose the earnings from the load and have to pay insurance claims. At the same time, shippers might choose to use a different carrier the next time, which impacts future revenue.
The company’s brand image absorbs the most impact of being linked to a foodborne illness. For shippers, there are plenty of competing products on the market that consumers can choose rather than returning to their product. Carriers run the risk of losing drivers to competing businesses that haven’t been linked to an outbreak, which, due to driver shortage, can be detrimental to a carrier’s business.
The main answer to these challenges is to implement a freight visibility solution. Prior to the institution of FSMA, data tracking was performed using manual processes or inefficient software solutions. Often, there were discrepancies between shipper and carrier data, which made it more difficult for authorities to determine who was at fault when a foodborne illness was caused by improper transportation. But with a third-party solutions provider, shippers and carriers can accurately track freight, and both parties are more inclined to accept information from a third-party provider because it is unaltered.
A freight visibility solution can track a shipment’s location as the carrier travels to the destination. It can also monitor the temperature within the trailer to ensure that the product is stored in the proper temperature range during transport. An added benefit is that both shippers and carriers can see the clean data, which ensures that shipments arrive to their destinations according to the standards set by FSMA.
Most importantly, both the shipper and carrier are required to meet the standards of food and beverage transportation. When guidelines aren’t met, both lose out on potential earnings and may face heavy fines, especially when a foodborne illness is linked directly to the transportation process. FSMA regulations that a freight visibility solution is unable to monitor and which human error can factor into include:
The transport trailer must be designed and made from material that can be adequately cleaned and sanitized. One of the concerns was that “adequately cleaned and sanitized” was not clearly defined. Considering the quantity of the requirements, it was up to the shipper to make that determination.
Product must be maintained in a sanitary condition that will ensure overall food safety. For instance, broken pallets that could puncture the product might not be allowed in trailers.
Product must be appropriately stored to prevent pests or contamination that could result in food becoming unsafe.
In the segmented atmosphere of the transportation and logistics industry, shippers and carriers would take any action necessary to make the best decision for their business. By using a third-party solutions vendor, the two can monitor data in the system and work closely to ensure that the transportation of the food and beverages follows FSMA regulations. When shippers and carriers work together and share accurate information, the likelihood of lost freight decreases.
The rise of freight visibility solutions has enabled shippers and carriers to share data more openly and freely through trusted, third-party vendors. Solutions like those offered by 10-4 Systems enable shippers and carriers to monitor their freight from the time it leaves the warehouse to the time it reaches the customer.
By providing insight into temperature control and location tracking, shippers and carriers can ensure that food and beverage products are transported according to FSMA regulations and that both parties are following the rules outlined by the contract.
Zack Gibbs is senior manager, customer strategy for 10-4 Systems, where he is responsible for key account management, solution engineering, project management and TMS strategic partnerships.
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Japanese carrier Ocean Network Express (ONE) is set to see losses spiral to $600m in its first year, says its revised consolidated business forecast for FY2018 (April 1, 2018 to March 31, 2019).
The integrated container shipping operating company, which was established by Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines Ltd., and Nippon Yusen Kabushiki Kaisha, said in a press statement that the loss is attributed to its struggle with a new information technology, staff shortages and a rapidly rising fuel costs.
Singapore-headquartered ONE, after formed in April, pumped $3 billion to merge their container operations. The company had originally forecast a $110 million annual profit.
“For the first half of the fiscal year, synergistic effects of the business integration have emerged steadily. On the other hand, liftings and utilization dropped due to the impact of teething problems immediately after the commencement of services in April of this year,” said the press statement.
The teething problems regarding ONE’s services have already been resolved, and both ONE Holdings and ONE are working earnestly to restore the trust of customers and further improve service quality.
However, liftings and utilization are still on the way to recovery, and the target for additional cost reduction to address increased bunker prices, is expected to be lower than the target in the previously announced forecast. Therefore, ONE made a downward revision in the previously announced full-year business forecast as well, it said.
ONE has also been hit by higher bunker prices, which have impacted the results of companies across the container shipping sector.
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UAE-based Gulf Marine Services (GMS), a provider of self-propelled self-elevating support vessels (SESVs) serving the offshore oil, gas and renewable energy sectors, said it secured a new contract for one of its Small Class vessels.
The new charter is for 12 months (including options) and is scheduled to commence shortly. The vessel will be supporting well intervention activities for a national oil company (NOC) in the MENA region.
Duncan Anderson, Chief Executive Officer of GMS, said: “This new award, which follows last month’s announcement of three long-term contracts, is further evidence of a continuing market recovery. The sustained higher oil price is having a positive impact in our sector, with increasing levels of maintenance and capex activity generating more contract opportunities for our vessels.”
Gulf Marine Services was founded in Abu Dhabi in 1977 and provider of advanced self-propelled self-elevating support vessels (SESVs).
The fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia and the United Kingdom. The Group’s assets are capable of serving clients’ requirements across the globe, including those in the Middle East, South East Asia, West Africa and Europe.
The GMS core fleet of 13 SESVs is amongst the youngest in the industry, with an average age of seven years.
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Canadian Pacific Railway (CP) has helped raise $2 million for brand-new facilities in the pediatric cardiology unit at the Jim Pattison Children’s Hospital in Saskatoon, Saskatchewan. (See photo above.) The company raised the money at the Canadian Pacific Women’s Open golf tournament in August and by matching all donations made through the hospital’s website during tournament week.
Online heavy-duty truck and trailer part supplier FinditParts has pledged to support the Prostate Cancer Foundation’s community fundraising initiative, Many vs. Cancer, by matching 100 percent of donations made through its website beginning in September—Prostate Cancer Awareness Month—and continuing through the rest of 2018. The company also added a donation option to its e-commerce checkout process.
Lincolnshire, Ill.-based global supply chain solutions provider Ice Mobility will support the Leukemia and Lymphoma Society by donating the net proceeds of its 3rd Annual Charity Golf Outing. In 2017, the company’s customers, vendors, and employees donated more than $30,000 to support the society, in honor of an Ice employee diagnosed with lymphoma.
Farmington, N.Y.-based transportation service provider Leonard’s Express will raise awareness of Parkinson’s disease by displaying a decal on a company truck and donating a penny for every mile the truck travels. The effort is expected to raise $1,250 for the Greater Rochester Parkinson’s Foundation, representing the approximately 125,000 miles the truck is projected to cover in a year.
Atlanta-based logistics and supply chain management services provider Veritiv Corp. has donated 31,000 rolls of toilet paper to Love Rolls Inc., a charity that provides toilet paper to the homeless community. The donation coincided with the Aug. 26 commemoration of National Toilet Paper Day and will help provide adequate sanitation for the toilets, showers, and hand-washing facilities used by homeless people.
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India is the fastest growing major economy in 2018 with a growth rate of 7.4 percent and a supportive macro environment. Domestic consumption towards the country’s growth is mainly led by three factors. These are (1) rising affluence, (2) growing urbanization and (3) rising consumerism, with India expected to become the world’s fifth–largest consumer market by 2025.
By Malcolm Monteiro, CEO, DHL eCommerce India
The Incredible India story
The geographic pattern of India’s income and consumption growth is shifting too.
By 2025 the Indian consumer market will largely be influenced by its growing urbanization, with 62 percent of consumption within urban areas versus 42 percent today.
Like many other markets, India’s consumption story is being bolstered by its rapidly growing millennial and Gen Z segment – a young and tech-savvy population, bolstered by rising literacy, education and disposable income. This translates into a consumer market that is heavily tied to mobility and connectivity, enhanced by the proliferation of internet-enabled devices such as mobile phones and 3G/4G penetration.
These habits and patterns have changed due to digitization which is rapidly changing the lives of the Indian population at large. The ‘mobile revolution’ in India is a unique one; mobile data adoption rates have rocketed and the ‘love story’ of Indians and Chinese mobile phone manufacturers with their attractive price tags have both contributed greatly to this trend. This has created a base for a strong digital infrastructure, and has provided great impetus to the growth of India’s digital economy. Users are consuming more of everything, from entertainment to shopping. The digital economy provides significantly more flexibility, speed, control and convenience to the consumer, and also offers huge opportunities to a large expanse of the population. According to the Confederation of Indian Industry (CII), the number of online shoppers in India is expected to reach 220 million by 2020.
The new ‘Digital India’
The Finance Ministry of India estimated that the digital economy is expected to grow to US $1 trillion by 2022 and comprise about 50 percent of the entire economy by 2030. Due to the hurdles faced in reaching and acquiring new customers, e-commerce players have found it difficult to expand their business and reach their goals. The digital economy, with its minimal or negligible start-up costs and access to a vast domestic consumer market, enables firms to overcome the challenges that traditional businesses have faced in the past.
The rise of the digital economy has seen the Indian government promote various modes of digital payment to achieve its objective of financial inclusion. Banks and fintech companies adopting new technologies for ultra-fast transactions, incentivising digital payments and use of data are some of the emerging trends that will push forward the adoption of digital payments. Some of the key trends in digital payments include Instant Payments (UPI – Unified Payment Interface), Mobile Wallets, PoS (Point of Sale) Devices and Artificial Intelligence (AI). The integration of these payment applications is what will change the landscape of digital payments in India.
The Government’s ‘Digital India’ initiative has also led to increased internet adoption, which in turn has given a boost to the e-commerce market. Technology has immensely helped diminish geographic borders for online shopping via the implementation of digital advertisements, digital payments and analytics-driven customer engagement.
E-commerce: A Strong Enabler of Growth
E-commerce has greatly transformed the way we do business in India. This segment has become the front-runner of the economy, especially the Indian start-up ecosystem. From the introduction of cash-on-delivery to introducing the option of exchange/return of goods, the Indian e-commerce market is thriving. India is among the fastest growing e-commerce markets in the world, and with the sheer population size in India, some might say we could even leapfrog China as the largest e-commerce market in the world. The potential for growth of e-commerce in India has launched national players such as Flipkart, Paytm Mall, Snapdeal and attracted heavy investments from global giants such as Amazon, Walmart and Alibaba, all of which are driving the sector. Driven by the rise in smartphone penetration, the launch of 4G networks and increasing purchasing power of consumers, the Indian e-commerce market – is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017.
E-commerce transactions are already on a steady growth trajectory, with logistics service providers being an important driving force behind this. Taking into account the maturing market and population factors mentioned earlier in this article, there is a need to maintain a great customer experience, hence most e-commerce players in India engage a reliable third-party logistics company to ensure efficient and speedy delivery – one that will provide greater choice, convenience and control for the consumer.
Another growing factor is cross border e-commerce, which provides local businesses with easy access to the global market. It is noteworthy that India’s overseas population is the largest in the world according to the United Nations, with a diaspora of approximately 31.2 million residing outside India.
The mere presence of a vast NRI (non-resident Indian) population overseas has given an opportunity for Indian brands to showcase and tap potential consumers overseas.
To serve this growing market, many Indian e-tailers that lack the deep pockets of the big e-commerce giants are altering their packaging and product lines to ensure they can reach customers via road and rail to achieve cost efficiencies in their logistics.
E-commerce is revolutionizing international trade at a phenomenal rate and leaders such as DHL eCommerce are already helping companies big and small make the most of this opportunity. DHL eCommerce offers end-to-end logistics from Domestic Delivery, Cross Border Delivery and Fulfillment to connect buyers and sellers around the world. DHL eCommerce is a leading enabler of e-commerce in India and operates Blue Dart Express, the leading and largest logistics provider in India.
At the beginning of the year, Blue Dart announced plans to further strengthen its offerings in India by expanding to every Indian home with 100 percent pin code coverage, which has already been achieved in 16 States & Union territories. This initiative is in close alignment with the government’s ‘Make In India’ vision to generate and enable better business and employment opportunities. The aim is to cover all 19,100+ pin codes across India by December 2018.
In June, we also opened our new state-of-the-art aviation hub in Chennai with land and air side access which gives Blue Dart better efficiency and faster transit times. Through Blue Dart’s excellent B2B and B2C solutions in India, we are able to offer our customers day-definite and time-definite delivery across all industries to make your business truly incredible.
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