Dive Brief:
- DHL eCommerce recently opened a fully-owned 307,000-square-foot distribution center near the Cincinnati/Northern Kentucky International Airport (CVG) after consolidating three of its properties in the area, according to a Sept. 12 press release.
- The $74 million facility is equipped with a Honeywell cross-belt loop sorter that can process up to 50,000 parcels and packages per hour, as well as a dual lane sliding shoe sorter designed to process up to 24,000 domestic and international parcels and packages every hour.
- The new distribution center is the largest sorting and cross-dock hub in DHL eCommerce’s U.S. network, according to the release. The hub can unload up to 20 trucks per hour to sort and reload for outbound last-mile deliveries.
Dive Insight:
DHL eCommerce’s new airport facility is part of its larger five-year U.S. growth plan to meet growing e-commerce demand, initially announced in 2021. At the time, the company said it would increase its network’s square footage by 70% and invest $400 million in its U.S. operations.
Although many companies like Amazon are slowing down their expansion plans as they reevaluate growth strategies according to evolving demand trends, DHL eCommerce has kept its focus on its e-commerce ambitions. The logistics provider recently told Supply Chain Dive that it has recently built or relocated 11 warehouses, with seven additional expected to be complete next year.
In June, the company relocated its facility in St. Louis, Missouri, to Kansas City, Missouri, and added automation features to help meet growing demand in the Midwest.
Later that month DHL relocated yet another facility, this time in Orlando, Florida, doubling its footprint in the city to a new 129,000-square-foot site in order to handle more volume. DHL eCommerce opened yet another distribution center in August, also automated to help process 40,000 parcels and packages per hour.
