In the complex world of global logistics, DHL presents a tale of two businesses: one soaring with efficiency and innovation, the other grappling with significant headwinds. While DHL's supply chain division emerges as the company's star performer, its forwarding unit faces substantial challenges that reveal the shifting dynamics in international shipping.
The Standout: DHL Supply Chain's Impressive Performance
DHL's supply chain division has become the gold standard within the organization, posting remarkable numbers that underscore its market dominance. In the second quarter of 2025, DHL Supply Chain achieved a 24% increase in EBIT, reaching €348 million while maintaining an impressive 7% margin. This performance isn't accidental but stems from strategic investments in automation and technological advancement.
The division currently operates 7,600 robots across 90% of its global sites, a testament to its commitment to digital transformation. This automation drive has significantly boosted operational efficiency while controlling costs-a crucial advantage as labor shortages and wage pressures mount across the industry.
According to Mark Kunar, CEO of DHL Supply Chain North America, "While advanced systems and increased automation have become essential in managing the modern supply chain, we're focused on implementing these technologies in ways that directly enhance customer value and operational resilience".
The Struggle: DHL Global Forwarding's Steep Decline
In stark contrast to the supply chain division's success, DHL Global Forwarding has faced substantial challenges. The division reported a 30% drop in EBIT during Q2 2025, falling to €196 million. This struggle continued into the third quarter, maintaining similar downward pressure on profitability.
The weakness in forwarding stems from multiple sources. Ocean freight volumes decreased by 6% year-over-year in Q2, while air freight managed only modest growth of 1% during the same period. This pattern reflects broader industry headwinds, including global container book volumes plummeting nearly 50% according to recent industry statistics.
Strategic Cost Management Across Divisions
DHL's response to these divergent performances has involved rigorous cost management, particularly within the struggling forwarding segment. The company has implemented strategic reductions across key operational areas:
- Air network costs reduced by 8.5%
- Pickup and delivery expenses down 5.8%
- Hub costs decreased by 1.2%
- Direct full-time employees reduced by 3.9%
These measures reflect what DHL CFO Melanie Kreis describes as "effective cost and yield management" that enables the company to "drive cash generation while balancing growth investments with attractive shareholder returns".
The Technology Divide: Digital Transformation Priorities
The performance gap between DHL's divisions partly reflects their different positions in the digital maturity curve. A recent DHL-commissioned survey revealed that 73% of executives expect their supply chains to become more AI-dependent in the next five years, yet adoption rates vary significantly.
Only 44% of participants confirmed they have deployed warehouse robotics, with even fewer (34%) expressing full satisfaction with their use of the technology. DHL Supply Chain has positioned itself at the forefront of this transformation, while the forwarding division appears to be playing catch-up in the digital arena.
Global Trade Shifts Impacting Forwarding
The forwarding division's challenges also reflect broader global trade disruptions. Recent data highlights significant shifts in trade patterns, with average global trade distances reaching a record 4,990 kilometers in the first half of 2025, while intra-regional trade fell to a historic low of 50.7%**.
These shifting trade routes have directly impacted DHL's business volumes, creating regional disparities. While U.S. volumes declined dramatically (-32%), the Middle East and Africa (+6%) and Asia-Pacific (+3%) regions showed growth. Such geographic reorientation requires rapid operational adjustments that have proven challenging for the global forwarding unit.
The Road Ahead: DHL's Strategic Response
Facing these divergent performances, DHL has maintained its full-year 2025 guidance of group EBIT ≥ €6.0 billion, expressing confidence in its ability to manage through the current volatility.
The company's strategy focuses on several key initiatives:
- Targeted Investments: DHL continues to invest in high-growth sectors including life sciences & healthcare, new energy, and e-commerce.
- Geographic Expansion: The company is allocating substantial resources to geographic advantage areas, with plans to invest over €500 million in the Middle East by 2030.
- Digital Transformation: Accelerated implementation of AI and automation technologies across all divisions.
- Structural Cost Reduction: The "Fit for Growth" program aims to reduce structural costs by €1.1 billion before 2026.
Conclusion: A Microcosm of Industry Evolution
DHL's contrasting division performances mirror broader logistics industry trends. As DHL Global Forwarding (APAC) CEO Nikki Frank observed, "We are moving from a linear, cost-optimized supply chain world to a system characterized by multiple nodes, risk balancing, and digitization".
The standout success of DHL Supply Chain demonstrates the value of automation and digital integration, while the forwarding division's struggles highlight the challenges presented by rapidly shifting global trade patterns and technological disruption.
For competitors and partners alike, DHL's experience offers crucial insights: in today's volatile logistics landscape, technological adoption and operational flexibility aren't just advantages-they're prerequisites for survival. As the industry continues to evolve, the ability to balance short-term profitability with long-term strategic positioning will separate the future leaders from the laggards.
For more insights on global logistics trends and supply chain optimization strategies, explore our comprehensive analysis at xmaelogistics.com.
