1 00:00:02,360 --> 00:00:06,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:06,920 --> 00:00:11,680 Speaker 2: Earlier today, Bloomberg's Romaine Bostick was joined by DHL Group 3 00:00:11,800 --> 00:00:16,160 Speaker 2: CEO doctor Tobias Meyer here on Bloomberg. 4 00:00:16,000 --> 00:00:18,239 Speaker 3: We shouldn't forget the benefits of trade and that it 5 00:00:18,320 --> 00:00:22,200 Speaker 3: has helped to curb inflation. It makes goods more widely available. 6 00:00:22,360 --> 00:00:27,120 Speaker 3: It helps us in different countries to participate in technological progress. 7 00:00:27,280 --> 00:00:29,800 Speaker 2: Not every nation is able to do a. 8 00:00:29,720 --> 00:00:34,360 Speaker 3: Big plant of semiconductors or develop vaccines, develop medical devices. 9 00:00:34,400 --> 00:00:37,599 Speaker 2: So the world needs trade also, the US needs trade. 10 00:00:37,920 --> 00:00:42,000 Speaker 3: The second point on the discussions of trade imbalances, we 11 00:00:42,080 --> 00:00:45,720 Speaker 3: also have services, and that's often forgotten. Europe is importing 12 00:00:45,720 --> 00:00:48,239 Speaker 3: a lot of services and these are very profitable for 13 00:00:48,440 --> 00:00:51,919 Speaker 3: US companies, so I think that's important to keep in 14 00:00:51,960 --> 00:00:56,880 Speaker 3: mind as well. The US is a highly beneficiary of 15 00:00:57,040 --> 00:01:00,800 Speaker 3: open services trade, so we should not only focus on 16 00:01:00,880 --> 00:01:03,280 Speaker 3: good now. If we look at goods, there was quite 17 00:01:03,280 --> 00:01:06,759 Speaker 3: some termol. I think the biggest operational impact was the 18 00:01:06,800 --> 00:01:12,280 Speaker 3: four day pausing on the Deminimus, which was then withdrawn 19 00:01:12,319 --> 00:01:15,720 Speaker 3: again because it led to chaos at many US ports 20 00:01:15,760 --> 00:01:19,600 Speaker 3: of entry. We had our challenges, but US customs also 21 00:01:19,600 --> 00:01:23,039 Speaker 3: had its challenges. It's nearly doubling the number of entries required. 22 00:01:23,480 --> 00:01:26,320 Speaker 3: Nobody was really prepared for it because it wasn't clear 23 00:01:26,800 --> 00:01:30,440 Speaker 3: the instructions came out after the effective date, and that 24 00:01:30,560 --> 00:01:35,000 Speaker 3: is truly causing a lot of headaches for our customers 25 00:01:35,480 --> 00:01:38,040 Speaker 3: and is causing a lot of work in our operations 26 00:01:38,200 --> 00:01:42,840 Speaker 3: to adjust to these ever changing requirements, especially on such 27 00:01:42,959 --> 00:01:43,679 Speaker 3: short notice. 28 00:01:43,760 --> 00:01:45,720 Speaker 1: So just to be clear, though, do you pick up 29 00:01:45,800 --> 00:01:48,080 Speaker 1: business as a result of that, meaning at least on 30 00:01:48,120 --> 00:01:51,080 Speaker 1: the consulting side and the logistics side, does that actually 31 00:01:51,240 --> 00:01:52,960 Speaker 1: aid you that type of disruption. 32 00:01:53,600 --> 00:01:56,520 Speaker 3: I think we are structurally very well positioned in this market. 33 00:01:56,560 --> 00:01:59,360 Speaker 3: We are structurally well positioned because of our market share 34 00:01:59,480 --> 00:02:02,480 Speaker 3: in many US related lanes isn't that big. We are 35 00:02:02,840 --> 00:02:05,880 Speaker 3: very strong in Asia, Middle East, Africa, so these are. 36 00:02:05,800 --> 00:02:08,080 Speaker 2: Our real strongholds. 37 00:02:08,120 --> 00:02:11,760 Speaker 3: Also for DHL Express as it relates to the US, 38 00:02:11,800 --> 00:02:15,360 Speaker 3: it's just so regrettable. It's not really adding efficiency to 39 00:02:15,440 --> 00:02:19,519 Speaker 3: our operations and not adding efficiency to our customer operations. 40 00:02:19,880 --> 00:02:24,000 Speaker 3: So we gain new business, we do more customs filings, 41 00:02:24,040 --> 00:02:26,960 Speaker 3: for instance, So it's not necessarily bad for US, but 42 00:02:27,040 --> 00:02:31,160 Speaker 3: I think overall these disruptions are not good for the 43 00:02:31,240 --> 00:02:34,440 Speaker 3: economic development and the building of wealth with people. 44 00:02:34,840 --> 00:02:39,240 Speaker 1: It's this deminimous rule is reinstate. If that exemption is 45 00:02:39,360 --> 00:02:43,040 Speaker 1: indeed taken away and the Trump administration revisits that, is 46 00:02:43,080 --> 00:02:46,080 Speaker 1: that going to affect your package volumes or were you 47 00:02:46,160 --> 00:02:47,800 Speaker 1: already sort of above that in the way that you 48 00:02:47,840 --> 00:02:49,480 Speaker 1: consolidate it stuff onto your planes. 49 00:02:50,440 --> 00:02:54,840 Speaker 3: So indeed, our exposure to those deminimus shipments is relatively low. 50 00:02:54,919 --> 00:02:57,760 Speaker 3: We have some in our express network, also in our 51 00:02:57,760 --> 00:03:01,920 Speaker 3: global forwarding network, but mainly what we do in the 52 00:03:01,960 --> 00:03:04,840 Speaker 3: space of e commerce is domestic distribution as well in 53 00:03:04,880 --> 00:03:08,440 Speaker 3: Europe and in good partnership with the USPS, the United 54 00:03:08,440 --> 00:03:12,919 Speaker 3: States Postal Service also in the US. I do think 55 00:03:13,000 --> 00:03:16,440 Speaker 3: and we understand that the administration might want to alter 56 00:03:16,600 --> 00:03:19,120 Speaker 3: the minimus. Europe has also done so with de facto 57 00:03:19,400 --> 00:03:22,320 Speaker 3: don't have a real deminimus anymore. We have a simplified 58 00:03:22,680 --> 00:03:26,040 Speaker 3: filing procedure, but for every shipment you need to pay 59 00:03:26,320 --> 00:03:31,320 Speaker 3: import VAT. So there are transitions possible to apply sensible 60 00:03:31,400 --> 00:03:34,679 Speaker 3: rules to also create income for the state. 61 00:03:34,880 --> 00:03:37,600 Speaker 2: But it's just good to do it in an orderly fashion. 62 00:03:38,000 --> 00:03:41,000 Speaker 1: What is your relationship with the US Postal Service right now? 63 00:03:41,040 --> 00:03:42,800 Speaker 1: Are they still your last mile provider? 64 00:03:43,720 --> 00:03:48,000 Speaker 3: Yes, they are exclusive last mile provider. It's something that 65 00:03:48,040 --> 00:03:51,400 Speaker 3: I think benefits the United Postal Service greatly because we 66 00:03:51,480 --> 00:03:56,760 Speaker 3: deliver volume into that network. It's mainly domestic volume that 67 00:03:56,880 --> 00:04:01,400 Speaker 3: comes from American merchants, particularly many as aes who sell online. 68 00:04:01,560 --> 00:04:04,320 Speaker 1: Given the political climate, do you worry at all about 69 00:04:04,360 --> 00:04:05,760 Speaker 1: maintaining that relationship. 70 00:04:06,640 --> 00:04:10,640 Speaker 2: Look, it would not be rational to change that. 71 00:04:12,400 --> 00:04:15,760 Speaker 3: The United States Postal Service, and we understand I think 72 00:04:15,800 --> 00:04:19,479 Speaker 3: that better business better than most because we are in 73 00:04:19,520 --> 00:04:22,320 Speaker 3: that very same position in our own country in Germany 74 00:04:22,320 --> 00:04:25,200 Speaker 3: that we need to provide a universal service to all 75 00:04:25,240 --> 00:04:27,840 Speaker 3: citizens and have obligations. 76 00:04:27,160 --> 00:04:28,960 Speaker 2: That are quite costly to do so. 77 00:04:28,960 --> 00:04:32,479 Speaker 3: So we sympathize with the position and the difficulties that 78 00:04:32,520 --> 00:04:36,039 Speaker 3: the United States Postal Service has. We can be helpful 79 00:04:36,320 --> 00:04:40,359 Speaker 3: to help bring volume into that network. We do not 80 00:04:40,600 --> 00:04:44,560 Speaker 3: cherry pick, which has been criticism with some other players 81 00:04:44,600 --> 00:04:47,080 Speaker 3: that depending on the type of ship and or depending 82 00:04:47,080 --> 00:04:49,520 Speaker 3: on the season, you put it in your own network 83 00:04:49,680 --> 00:04:53,480 Speaker 3: or you then when it's not profitable or you don't 84 00:04:53,520 --> 00:04:56,040 Speaker 3: have the capacity in your own network, then you use 85 00:04:56,080 --> 00:04:59,880 Speaker 3: the United States Postal Service. That is an arbitrage that 86 00:05:00,080 --> 00:05:03,320 Speaker 3: I think, for good reasons, is looked upon very critically, 87 00:05:03,560 --> 00:05:04,599 Speaker 3: but we are not doing that.