NAME: Congzon, Cris Bryan S.

SECTION: BAOM – 402 DATE: 5/8/2023

ACTIVITY
DHL and Shopee Partnership

DHL and Shopee launch new partnership, enabling China sellers to easily access Thai consumers. DHL
eCommerce, a division of the world’s leading logistics company, Deutsche Post DHL Group (DPDHL),
announced a partnership on October 2018 with Shopee, a leading e-commerce platform in Southeast
Asia and Taiwan. The partnership enables sellers in China to access consumers nationwide in Thailand,
with an expansion of the partnership to other Southeast Asian markets in the pipeline (Bloomberg,
2018). “Direct selling to overseas consumers has never been easier and has become a key growth driver
for many businesses, with e-commerce as an easy platform to enable international expansion. With
logistics as a key enabler for cross-border retailing, we want to empower our customers to tap into this
huge growth opportunity,” says Zhi Zheng, Managing Director, DHL eCommerce Greater China & North
Asia. DHL guaranteed to provide effective and efficient logistics services through their massive volume of
trucks and planes, as Thailand is accessible from China by land. With DHL eCommerce integrated on
Shopee in China, sellers can easily sell and deliver on a single platform and keep track of all shipments
directly through their mobile applications (Bloomberg, 2018).

“In recent years, we have witnessed the rapid development of Southeast Asia’s e-commerce market,
and a growing number of Chinese brands and sellers are staking a claim in this e-commerce goldmine.
However, the geographical complexity of this region has created some logistical challenges. As a leading
e-commerce platform in Southeast Asia, Shopee has built its Shopee Logistics Servcies (SLS), a highly
efficient logistics delivery network that links China with Southeast Asia. We are delighted to work with
DHL, the world’s leading logistics service provider, to grow SLS from strength to strength. Our
collaboration will make Shopee the e-commerce platform of choice for cross-border sellers in China who
aspire to sell into Southeast Asia,” said Jianghong Liu, Head of Shopee Cross Border eCommerce
(Bloomberg, 2018). Currently, Shopee’s SLS is operational in seven (7) markets in Southeast Asia and
Taiwan. With shipping costs 20% to 30% lower than typical market rates and better transit times, SLS
makes cross border logistics a breeze for Chinese sellers. The collaboration between Shopee and DHL
eCommerce will further enhance the capabilities of SLS. DHL will provide Shopee sellers and buyers with
door-to-door logistics services, ensuring products will reach consumers in Thailand safely and quickly
(Bloomberg, 2018).
Answer the following items: (3 items x 10 points)

1. Identify the modes of transport DHL uses.

ANSWER: DHL uses air carriers and vehicle carriers for its transportation. Because DHL will offer sellers
and buyers door-to-door logistics services to make sure that the products reach clients quickly, it is a
motor carrier. Because the Southeast Asian e-commerce market is expanding quickly and Shopee's SLS is
active in seven Southeast Asian markets as well as Taiwan, it is air carriers.

2. Analyze and describe the clause/s of Incoterms involved in the delivery service of Shopee to
their customers.

ANSWER: Because the buyer is responsible for the cost of transportation, particularly when the delivery
is COD (cash on delivery), it is EXW (Ex Works). Because the seller must provide the buyer's desired
goods to the carrier, it is FCA (Free Carrier). It is CPT (Carriage Paid to) because there is a risk of goods
loss or damage while shopping online, so the seller is required to ensure the export clearance. Because
it is the same as CPT, where the seller secures the goods for loss or damage, it is CIP (Carriage and
Insurance Paid to). Because the seller must make sure that the delivery occurs at the destination
terminal that was agreed upon with the buyer, it is DAT (Delivered at Terminal). Due to the fact that
delivery is completed when the orders are eventually dispatched, it is DDP (Delivered Duty Paid).

3. Propose an optimal and cost-efficient transport mode/s for DHL in conveying goods from China
to Thailand.

ANSWER: Water Carriers are the most advantageous and economical means of transport for DHL when
shipping goods from China to Thailand. This carrier's price is reasonable, and despite its slowness and
lack of flexibility, its operational costs are minimal.