1 00:00:07,000 --> 00:00:11,000 Speaker 1: Hi everyone, and welcome to Bloomberg Intelligence Talking Transports podcast. 2 00:00:11,080 --> 00:00:14,880 Speaker 1: I'm your host Lee Glasgow, Senior free transportation logistics analysts 3 00:00:15,160 --> 00:00:19,600 Speaker 1: at Bloomberg Intelligence, Bloomberg's in house research arm. We're delighted 4 00:00:19,600 --> 00:00:23,480 Speaker 1: to have Mike Para, CEO of DHL Express Americas as 5 00:00:23,520 --> 00:00:26,279 Speaker 1: our guest on the podcast. This business is part of 6 00:00:26,360 --> 00:00:29,480 Speaker 1: DHL Group, a publicly traded company under the ticker at 7 00:00:29,520 --> 00:00:33,800 Speaker 1: DHL Spacegy on the Terminal with a market cap north 8 00:00:33,840 --> 00:00:37,600 Speaker 1: of fifty eight billion. Mike joined DHL in nineteen ninety 9 00:00:37,640 --> 00:00:41,520 Speaker 1: seven as a service center manager in South Florida after 10 00:00:41,560 --> 00:00:44,400 Speaker 1: ten years with T and T Express. He's been CEO 11 00:00:44,520 --> 00:00:48,600 Speaker 1: of DHL Express America since twenty sixteen, and we'll start 12 00:00:48,640 --> 00:00:51,920 Speaker 1: a new role as CEO of DHL Express Europe starting 13 00:00:51,960 --> 00:00:55,440 Speaker 1: on January first. Welcome to the podcast, Mike. 14 00:00:55,680 --> 00:00:59,120 Speaker 2: Thank you, Lee, and to everyone who is listening. Thank 15 00:00:59,160 --> 00:01:03,120 Speaker 2: you for having us and look forward to our time together. Yeah. 16 00:01:03,160 --> 00:01:06,400 Speaker 1: Absolutely, So, can you tell a little bit about what 17 00:01:07,040 --> 00:01:11,480 Speaker 1: DHL Express America's is and kind of what your responsibilities 18 00:01:11,480 --> 00:01:12,400 Speaker 1: are as the CEO? 19 00:01:12,800 --> 00:01:17,760 Speaker 2: Yeah? Sure. So. The Express division in the America's basically 20 00:01:18,720 --> 00:01:23,120 Speaker 2: is everything between Canada and Argentina or if you're from Chile, 21 00:01:23,319 --> 00:01:28,160 Speaker 2: we would say Canada to Chile. And we're responsible for 22 00:01:28,760 --> 00:01:33,640 Speaker 2: the express time definite international portion of our business, which 23 00:01:33,680 --> 00:01:39,400 Speaker 2: is basically anything that can be delivered globally to two 24 00:01:39,440 --> 00:01:43,760 Speaker 2: hundred and twenty countries and territories that we're in between 25 00:01:43,840 --> 00:01:46,320 Speaker 2: twenty four to seventy two hours. 26 00:01:47,480 --> 00:01:50,920 Speaker 1: All right, And how big is that business for d Yeah, 27 00:01:50,960 --> 00:01:52,080 Speaker 1: so it's. 28 00:01:51,960 --> 00:01:57,120 Speaker 2: Our second biggest region in the world. Basically consists of 29 00:01:57,200 --> 00:02:03,040 Speaker 2: a very sizable revenue based business close to twenty nine 30 00:02:03,080 --> 00:02:11,200 Speaker 2: thousand employees and over seven to eight hundred thousand shipments 31 00:02:11,240 --> 00:02:11,560 Speaker 2: a day. 32 00:02:11,960 --> 00:02:14,360 Speaker 1: Wow, twenty nine thousand employees. It's a lot of people. 33 00:02:14,880 --> 00:02:19,360 Speaker 1: What are the majority of those people? Are they insportation facilities? 34 00:02:19,440 --> 00:02:21,080 Speaker 1: I mean, obviously they're not all no. 35 00:02:20,960 --> 00:02:23,040 Speaker 2: No, no, no no. You've got a mixture of you know, 36 00:02:23,120 --> 00:02:26,760 Speaker 2: ground employees that are doing pickup and delivery, back office 37 00:02:26,880 --> 00:02:30,920 Speaker 2: employees that are working within our facilities across the region, 38 00:02:31,760 --> 00:02:35,520 Speaker 2: Folks that work in our hubs and our gateways that 39 00:02:35,720 --> 00:02:39,360 Speaker 2: basically manage the loading and offloading of our planes or 40 00:02:39,400 --> 00:02:42,920 Speaker 2: trucks that are coming through in the physical sortation of 41 00:02:42,960 --> 00:02:47,399 Speaker 2: that product. And then you've got your front counter retail 42 00:02:47,520 --> 00:02:51,880 Speaker 2: folks that are receiving customers walking in from off the 43 00:02:51,960 --> 00:02:55,360 Speaker 2: street or existing customers from that perspective, and then you 44 00:02:55,400 --> 00:02:59,800 Speaker 2: have all your back office functions, human resources, it, finance, 45 00:03:00,880 --> 00:03:02,600 Speaker 2: you know, are the men and women who are out 46 00:03:02,600 --> 00:03:06,360 Speaker 2: there doing the commercial portion of our business as well. 47 00:03:06,400 --> 00:03:07,840 Speaker 2: And then security. 48 00:03:08,080 --> 00:03:10,440 Speaker 1: Okay great, And then you know, when you're out there 49 00:03:10,480 --> 00:03:14,760 Speaker 1: selling your services, what makes DHL Express unique or what's 50 00:03:14,760 --> 00:03:19,880 Speaker 1: your competitive advantage versus the other competitors that are out there? 51 00:03:20,040 --> 00:03:23,519 Speaker 2: Yeah, good question. You know people ask us, well, what's 52 00:03:23,520 --> 00:03:26,640 Speaker 2: our secret sauce is what I would call it, and 53 00:03:26,680 --> 00:03:30,080 Speaker 2: what it would be is our own internal learning and 54 00:03:30,120 --> 00:03:33,560 Speaker 2: development program that we facilitate ourselves. So that is one. 55 00:03:34,160 --> 00:03:36,640 Speaker 2: But then if you take a step back and take 56 00:03:36,640 --> 00:03:38,680 Speaker 2: a look at from when the foundation of the company 57 00:03:38,720 --> 00:03:43,160 Speaker 2: started in nineteen sixty nine, it has been our core competency, 58 00:03:43,200 --> 00:03:47,240 Speaker 2: which is our focus, which is international. So it's time 59 00:03:47,280 --> 00:03:51,600 Speaker 2: definite international and we've been doing it successfully from nineteen 60 00:03:51,680 --> 00:03:55,720 Speaker 2: sixty nine to two hundred territories across the world. Everything 61 00:03:55,880 --> 00:03:59,640 Speaker 2: from you know, the EXPEDEDATA pickup and delivery to the 62 00:03:59,680 --> 00:04:05,400 Speaker 2: officialcies that we have around our customs clearance capability and. 63 00:04:05,440 --> 00:04:09,520 Speaker 1: Can you talk about the fleet that's involved in express 64 00:04:09,680 --> 00:04:11,120 Speaker 1: I don't know if you're able to break it out 65 00:04:11,520 --> 00:04:14,600 Speaker 1: by the Americas versus other parts of the region. What 66 00:04:14,720 --> 00:04:16,839 Speaker 1: kind of air fleet do you guys operate. 67 00:04:17,000 --> 00:04:19,719 Speaker 2: But we've got you know, all type of sizes of 68 00:04:19,760 --> 00:04:23,839 Speaker 2: our planes, whether it be you know seven three, seven, seven, five, seven, 69 00:04:24,080 --> 00:04:30,200 Speaker 2: seven six seven, seven, four sevens and triple sevens uh 70 00:04:30,520 --> 00:04:33,320 Speaker 2: is from an air perspective, that either being our own 71 00:04:33,360 --> 00:04:38,039 Speaker 2: aircraft or those with our partners. And then we've got 72 00:04:38,400 --> 00:04:42,440 Speaker 2: obviously all type of vehicles on the road from electric 73 00:04:42,560 --> 00:04:45,919 Speaker 2: vehicles that are on the road today in the Americas, 74 00:04:45,960 --> 00:04:49,640 Speaker 2: which by the way, we keep expanding. In the Americas. 75 00:04:49,640 --> 00:04:54,160 Speaker 2: We have over almost five hundred electric vehicles, and we 76 00:04:54,360 --> 00:04:59,080 Speaker 2: also have another two hundred in order. So again a 77 00:04:59,120 --> 00:05:04,760 Speaker 2: big commitment on the sustainability side through electrification. But we 78 00:05:04,880 --> 00:05:07,680 Speaker 2: have all types of vehicles, whether it be twenty six footers, 79 00:05:07,680 --> 00:05:15,000 Speaker 2: fifty two footers, small medium sized vehicles rolling around across 80 00:05:15,080 --> 00:05:19,159 Speaker 2: the Americas as well, with an emphasis again of moving 81 00:05:19,279 --> 00:05:24,240 Speaker 2: towards sixty percent of our global fleet. So by twenty thirty, 82 00:05:24,600 --> 00:05:27,920 Speaker 2: sixty percent of our global fleet around the world will 83 00:05:27,920 --> 00:05:31,840 Speaker 2: be electrified. From an electric vehicle perspective. 84 00:05:31,720 --> 00:05:36,480 Speaker 1: Okay, great, and you know, when looking at demand, I mean, 85 00:05:36,520 --> 00:05:39,120 Speaker 1: so we're kind of in peak season. We just had 86 00:05:39,279 --> 00:05:43,680 Speaker 1: the Christmas holiday shopping post Thanksgiving as we're recording this, 87 00:05:44,320 --> 00:05:47,000 Speaker 1: so could you talk about, you know, what you guys 88 00:05:47,040 --> 00:05:50,159 Speaker 1: are seeing so far in peak and how it compares 89 00:05:50,200 --> 00:05:51,240 Speaker 1: to previous seasons. 90 00:05:51,360 --> 00:05:55,520 Speaker 2: Yeah, it's actually it's been it's been surprising, surprisingly enough. 91 00:05:55,880 --> 00:05:58,560 Speaker 2: But what we've seen already is we've seen an eleven 92 00:05:58,640 --> 00:06:02,200 Speaker 2: percent increase in more volume that we saw last year 93 00:06:03,040 --> 00:06:07,200 Speaker 2: in both those days, and we're still seeing that hold 94 00:06:07,320 --> 00:06:12,200 Speaker 2: up from a perspective in that in that in that scenario, 95 00:06:13,400 --> 00:06:17,480 Speaker 2: we're seeing volumes that we will we're seeing now volumes 96 00:06:17,520 --> 00:06:21,239 Speaker 2: growing to be plus fourteen percent higher than last year. 97 00:06:21,800 --> 00:06:24,039 Speaker 2: Uh and it could get to as high as plus 98 00:06:24,080 --> 00:06:26,640 Speaker 2: sixteen percent higher than last year. 99 00:06:26,720 --> 00:06:30,600 Speaker 1: So we are seeing is that just for sorry, is 100 00:06:30,880 --> 00:06:33,600 Speaker 1: that just for the Americas or is that the global express? 101 00:06:33,600 --> 00:06:36,960 Speaker 2: But we're seeing that in the Americas from the goalcous Yeah, 102 00:06:37,000 --> 00:06:39,479 Speaker 2: from the global perspective, we'll have to wait till those 103 00:06:39,560 --> 00:06:44,000 Speaker 2: numbers roll up from them. But from an America's perspective, 104 00:06:44,040 --> 00:06:46,680 Speaker 2: that's what we've been able to gauge, and it's holding. 105 00:06:46,839 --> 00:06:49,080 Speaker 2: It's holding. What I'm saying it's holding in the sense 106 00:06:49,160 --> 00:06:52,760 Speaker 2: that what I saw the numbers today are still in 107 00:06:52,839 --> 00:06:56,640 Speaker 2: that double digit framework, So it's it's actually that's where 108 00:06:56,640 --> 00:06:58,479 Speaker 2: I said, it's a bit surprising, which is good. 109 00:06:59,080 --> 00:07:03,599 Speaker 1: That's a fantastic And is that strength all across your 110 00:07:03,640 --> 00:07:06,400 Speaker 1: region or is it just the United States or is 111 00:07:06,440 --> 00:07:09,640 Speaker 1: it like other parts of your region that the strength 112 00:07:09,640 --> 00:07:10,200 Speaker 1: that is happening. 113 00:07:10,280 --> 00:07:13,160 Speaker 2: Yeah, it's predominantly what I would call North America, Canada, 114 00:07:13,240 --> 00:07:16,320 Speaker 2: the US, and Mexico. That's where we're seeing. It doesn't 115 00:07:16,360 --> 00:07:20,200 Speaker 2: mean we're not seeing some growth into Central South America 116 00:07:20,280 --> 00:07:23,600 Speaker 2: or the Caribbean or Brazil, but it's not at the 117 00:07:23,640 --> 00:07:27,080 Speaker 2: double digit level that we've seen into North America. From 118 00:07:27,080 --> 00:07:30,440 Speaker 2: that perspective, and when you've got a stronger dollar as 119 00:07:30,480 --> 00:07:33,640 Speaker 2: we've seen, or a dollar that is holding, your buying 120 00:07:33,760 --> 00:07:38,040 Speaker 2: power is great and we're seeing the biggest growth we're 121 00:07:38,080 --> 00:07:41,960 Speaker 2: seeing still continues to be out of southern China and 122 00:07:42,040 --> 00:07:46,280 Speaker 2: out of Hong Kong into the United States, Canada, or 123 00:07:46,280 --> 00:07:49,560 Speaker 2: and Mexico. Some of it could be fast fashioned, by 124 00:07:49,600 --> 00:07:55,240 Speaker 2: the way, which is under big demand and specific specific 125 00:07:55,320 --> 00:07:59,440 Speaker 2: customers to remain nameless. But we're also seeing, you know, 126 00:07:59,520 --> 00:08:01,600 Speaker 2: after mare market parts that are coming in from an 127 00:08:01,600 --> 00:08:05,400 Speaker 2: automotive perspective, and you're starting to see a bit of 128 00:08:05,440 --> 00:08:09,360 Speaker 2: a ramp up on the retail side from the small 129 00:08:09,400 --> 00:08:13,200 Speaker 2: to medium sized customers of individuals that are getting on 130 00:08:13,360 --> 00:08:20,200 Speaker 2: in front of Christmas shopping. So they leverage the opportunities 131 00:08:20,240 --> 00:08:24,160 Speaker 2: and discounts that were put in place for Cyber Friday. 132 00:08:24,320 --> 00:08:27,680 Speaker 2: I'm sorry for Black Friday and Cyber Monday. The other 133 00:08:27,760 --> 00:08:31,160 Speaker 2: phenomenon that we saw was a lot of the customers 134 00:08:31,400 --> 00:08:35,000 Speaker 2: were putting their sales out even earlier. They weren't waiting 135 00:08:35,040 --> 00:08:38,680 Speaker 2: for Black Friday or Cyber Monday. They started the sales 136 00:08:38,840 --> 00:08:44,319 Speaker 2: earlier this year, which in turn triggered earlier type of 137 00:08:44,440 --> 00:08:49,480 Speaker 2: volumes landing in our markets and out for delivery as well. 138 00:08:50,960 --> 00:08:54,080 Speaker 1: Interesting, You'll be happy to know I just got a 139 00:08:54,120 --> 00:08:57,160 Speaker 1: notification a couple of days ago from DHL that a 140 00:08:57,240 --> 00:09:00,600 Speaker 1: suit I ordered from probably China, is on its way. 141 00:09:00,679 --> 00:09:05,440 Speaker 1: So I'm sure you're happy to know that. I'm accustomed. 142 00:09:05,440 --> 00:09:07,760 Speaker 2: Thank you, We appreciate that. 143 00:09:09,440 --> 00:09:15,640 Speaker 1: Hopefully the suit fits. Yeah, So that's interesting. So you know, 144 00:09:16,360 --> 00:09:21,000 Speaker 1: is there a difference between product offerings in that growth? Like, 145 00:09:21,400 --> 00:09:24,760 Speaker 1: is there an is economy growing faster? I guess in 146 00:09:24,840 --> 00:09:26,640 Speaker 1: a premium service that you have, and if you can 147 00:09:26,679 --> 00:09:28,840 Speaker 1: talk about the different kind of services that you offer 148 00:09:28,880 --> 00:09:30,200 Speaker 1: in the express network. 149 00:09:29,880 --> 00:09:33,280 Speaker 2: Sure, we're more a premium company. We don't offer and 150 00:09:33,600 --> 00:09:38,200 Speaker 2: we don't offer a deferred economy service in the Americas. 151 00:09:38,400 --> 00:09:41,800 Speaker 2: From a DHL perspective, so what we have seen is 152 00:09:41,920 --> 00:09:45,120 Speaker 2: that a lot of the customers obviously that are ordering 153 00:09:45,160 --> 00:09:48,720 Speaker 2: and are selecting DHL are they're looking for their product 154 00:09:48,720 --> 00:09:51,679 Speaker 2: because they want it now and they're getting they're getting 155 00:09:51,720 --> 00:09:56,320 Speaker 2: that transit time that they expected. So people are ordering 156 00:09:56,320 --> 00:09:59,640 Speaker 2: the goods, and especially when you look at fast Fashion, 157 00:10:00,120 --> 00:10:04,800 Speaker 2: people have been ordering Fast Fashion for years now and 158 00:10:04,960 --> 00:10:08,600 Speaker 2: they want it now, and most of the providers that 159 00:10:08,640 --> 00:10:13,640 Speaker 2: they're selecting are incorporating the delivery costs into the overall 160 00:10:13,679 --> 00:10:18,319 Speaker 2: pricing structure. Some of it, I'm assuming they're absorbing either 161 00:10:18,400 --> 00:10:20,760 Speaker 2: through the rate that they're charging or they may be 162 00:10:20,960 --> 00:10:24,000 Speaker 2: who knows, maybe they're taking a loss from that perspective, 163 00:10:24,040 --> 00:10:28,160 Speaker 2: but if you're using DHL, you know the service level 164 00:10:28,200 --> 00:10:31,000 Speaker 2: you're going to get, and historically people have always been 165 00:10:31,320 --> 00:10:34,520 Speaker 2: quite happy with how fast we get goods to their 166 00:10:34,559 --> 00:10:36,040 Speaker 2: homes or their businesses. 167 00:10:37,440 --> 00:10:41,839 Speaker 1: Right and for growth in the America, I'm assuming it's 168 00:10:41,880 --> 00:10:45,240 Speaker 1: mostly organic. Where's that growth coming from? Where there are 169 00:10:45,240 --> 00:10:48,319 Speaker 1: certain verticals that you are focused on? 170 00:10:48,720 --> 00:10:51,800 Speaker 2: Well, I mean fashion is definitely So where is it 171 00:10:51,840 --> 00:10:55,720 Speaker 2: coming from. It's coming from It's coming from southern China, 172 00:10:55,840 --> 00:11:00,920 Speaker 2: It's coming from Hong Kong. We're seeing growth out of Taiwan. 173 00:11:01,080 --> 00:11:04,000 Speaker 2: We're seeing growth out of Vietnam. We're seeing growth out 174 00:11:04,040 --> 00:11:07,640 Speaker 2: of India, and that's where it's coming into North America. 175 00:11:08,000 --> 00:11:11,120 Speaker 2: We're also seeing you know, omni shoring or what we 176 00:11:11,160 --> 00:11:17,400 Speaker 2: would call reshoring or near shoring away from China. But 177 00:11:17,880 --> 00:11:22,800 Speaker 2: there is it's very clear that China remains a clear player. 178 00:11:23,040 --> 00:11:26,640 Speaker 2: And then the goods that we're seeing are fashion that's 179 00:11:26,679 --> 00:11:31,720 Speaker 2: coming in aftermarket auto parts that are on heavy demand, 180 00:11:31,840 --> 00:11:34,760 Speaker 2: especially where you still have interest rates, or buying a 181 00:11:34,760 --> 00:11:37,600 Speaker 2: new car at the moment may be a bit more 182 00:11:37,600 --> 00:11:41,199 Speaker 2: expensive as a result of the interest rates that are 183 00:11:41,200 --> 00:11:44,240 Speaker 2: out there, so people are holding onto the cars getting 184 00:11:44,320 --> 00:11:48,160 Speaker 2: them serviced appropriately, as I'm doing right now myself. My 185 00:11:48,200 --> 00:11:50,760 Speaker 2: brother actually has helped me out. He went to my 186 00:11:50,800 --> 00:11:54,360 Speaker 2: home to pick up my jeep and he was taking 187 00:11:54,400 --> 00:11:58,480 Speaker 2: it over to get a fix for me, instead of 188 00:11:58,520 --> 00:12:00,600 Speaker 2: me going and then saying, hey, I'm gonna go get 189 00:12:00,600 --> 00:12:05,000 Speaker 2: a new car. I'm getting my own existing car repaired. 190 00:12:05,040 --> 00:12:08,439 Speaker 2: So we're seeing those aftermarket parts come in. And then 191 00:12:08,480 --> 00:12:12,600 Speaker 2: obviously tech uh tech in the space of whether it 192 00:12:12,679 --> 00:12:18,120 Speaker 2: be new iPhones that are coming in or uh, you know, 193 00:12:18,280 --> 00:12:21,959 Speaker 2: new new equipment going into the holidays. From that perspective, 194 00:12:22,040 --> 00:12:25,800 Speaker 2: gaming is big as well. Lead uh, So we're seeing 195 00:12:25,840 --> 00:12:28,800 Speaker 2: a lot of gaming components that are coming in, especially 196 00:12:29,520 --> 00:12:32,720 Speaker 2: as we're coming into the holidays season. 197 00:12:33,800 --> 00:12:37,000 Speaker 1: Right and you know, you mentioned near shoring. You know, 198 00:12:37,040 --> 00:12:39,560 Speaker 1: it's an interesting secular trend that looks like it has 199 00:12:39,600 --> 00:12:43,920 Speaker 1: some legs. It's going to be real slow, slow to 200 00:12:43,960 --> 00:12:47,880 Speaker 1: progress and evolve. Is near shuring a net positive or 201 00:12:48,000 --> 00:12:52,960 Speaker 1: net negative for express And I'm not just talking maybe America's, 202 00:12:53,040 --> 00:12:55,800 Speaker 1: but like maybe the global networks, because I'm assuming you know, 203 00:12:55,840 --> 00:12:59,360 Speaker 1: there's you know, lower lower lengths of haul that that 204 00:12:59,360 --> 00:13:00,600 Speaker 1: that need to be Uh. 205 00:13:01,160 --> 00:13:03,280 Speaker 2: Yeah, No, it's a it's actually a positive. And we've 206 00:13:03,320 --> 00:13:06,760 Speaker 2: been seeing it unfold in my region as an example, 207 00:13:07,320 --> 00:13:11,240 Speaker 2: uh in Mexico and and more specifically Northern Mexico, So 208 00:13:11,800 --> 00:13:13,199 Speaker 2: places like Sula. 209 00:13:12,960 --> 00:13:20,080 Speaker 3: Hua Is, uh El Bahil, Gueralajara, Monterrey, that part of 210 00:13:20,200 --> 00:13:26,000 Speaker 3: northern Mexico we've seen near shoring evolving at a rapid pace. 211 00:13:26,160 --> 00:13:28,920 Speaker 2: It's a good thing. It's a good thing for the 212 00:13:29,000 --> 00:13:34,800 Speaker 2: Mexican economy, UH from an import perspective, creating jobs, but 213 00:13:34,880 --> 00:13:40,199 Speaker 2: also exporting back out from Mexico to the US UH 214 00:13:40,320 --> 00:13:44,000 Speaker 2: or to Canada. And that's one of the things that 215 00:13:44,200 --> 00:13:45,800 Speaker 2: you know, we should talk about, which is a bit 216 00:13:45,840 --> 00:13:49,640 Speaker 2: of friend shoring. A lot of countries that have like 217 00:13:50,120 --> 00:13:55,600 Speaker 2: minded UH. You know, you know policies from a trade 218 00:13:55,640 --> 00:13:59,760 Speaker 2: perspective that that is the label friend shoring, and that's 219 00:13:59,760 --> 00:14:03,480 Speaker 2: where you've got, you know, the US, Mexico and Canada, 220 00:14:03,520 --> 00:14:07,920 Speaker 2: which is the US MCA deal. They're leveraging that trade 221 00:14:08,000 --> 00:14:12,960 Speaker 2: deal UH, and that's why near shoring to Mexico makes 222 00:14:13,000 --> 00:14:17,439 Speaker 2: all the sense in the world. And it's really becoming 223 00:14:17,480 --> 00:14:23,840 Speaker 2: more on the tech side UH and consumer electronics from 224 00:14:23,840 --> 00:14:27,400 Speaker 2: that perspective. So we are seeing that develop and we're excited, 225 00:14:27,920 --> 00:14:32,080 Speaker 2: and we've been obviously adding more employment UH in northern 226 00:14:32,160 --> 00:14:35,320 Speaker 2: Mexico and we're seeing our business grow there at a 227 00:14:35,360 --> 00:14:37,640 Speaker 2: pretty rapid place, at a pretty rapid pace. 228 00:14:39,280 --> 00:14:41,480 Speaker 1: In addition to adding heads. You know, what kind of 229 00:14:41,480 --> 00:14:44,880 Speaker 1: investments are you making in the network to handle the growth, 230 00:14:44,880 --> 00:14:48,600 Speaker 1: Whether it's for near shoring or other aspects of your 231 00:14:48,600 --> 00:14:50,920 Speaker 1: business that you see growth coming in the next couple 232 00:14:50,920 --> 00:14:51,200 Speaker 1: of years. 233 00:14:51,240 --> 00:14:53,160 Speaker 2: Well, we made we're in the process now of a 234 00:14:53,400 --> 00:14:58,120 Speaker 2: you know, a second extension of our caditit O hub 235 00:14:58,480 --> 00:15:02,200 Speaker 2: in the in the Bahio region, which is a big 236 00:15:02,240 --> 00:15:06,840 Speaker 2: gateway and a big domestic air hub for US as well. 237 00:15:07,600 --> 00:15:10,840 Speaker 2: And it just complements the growth that's happening both Injuial 238 00:15:10,840 --> 00:15:14,320 Speaker 2: the Laja, Monterrey, which we're investing in as well in 239 00:15:14,360 --> 00:15:19,960 Speaker 2: those markets. So it's infrastructure investment which also helps the 240 00:15:20,040 --> 00:15:25,800 Speaker 2: local economy. It's adding additional jobs, it's having more vehicles 241 00:15:25,840 --> 00:15:29,920 Speaker 2: in place, and then it's increasing the size of the 242 00:15:30,000 --> 00:15:32,640 Speaker 2: air network that we have in Mexico. So those are 243 00:15:32,640 --> 00:15:36,040 Speaker 2: all the things that are currently taking place. You know. 244 00:15:36,120 --> 00:15:38,640 Speaker 1: One of the comments I hear a lot when companies 245 00:15:38,680 --> 00:15:41,720 Speaker 1: are looking to do business outside the United States, especially 246 00:15:41,760 --> 00:15:46,640 Speaker 1: you know, Mexico or Central South America our security concerns. 247 00:15:47,760 --> 00:15:50,800 Speaker 1: How do you do you how differently do you operate 248 00:15:50,880 --> 00:15:54,200 Speaker 1: in those regions versus Canada and the US from a 249 00:15:54,240 --> 00:15:57,760 Speaker 1: security standpoint to ensure not only the packages are safe, 250 00:15:57,840 --> 00:15:59,520 Speaker 1: but obviously your employees are as well. 251 00:16:00,120 --> 00:16:03,440 Speaker 2: So you know, the safety and security and the well 252 00:16:03,480 --> 00:16:06,360 Speaker 2: being of our employees is a priority one and it 253 00:16:06,400 --> 00:16:08,880 Speaker 2: has always been. It's been that way since we open 254 00:16:08,920 --> 00:16:13,360 Speaker 2: the doors in nineteen sixty nine. Security, whether it be 255 00:16:13,480 --> 00:16:17,000 Speaker 2: Mexico or anywhere within my region. You know, if you 256 00:16:17,040 --> 00:16:20,160 Speaker 2: take a look at what's going on in Haiti, security 257 00:16:20,280 --> 00:16:24,200 Speaker 2: is key and what we do is and it's country 258 00:16:24,240 --> 00:16:27,200 Speaker 2: by country. So Haiti is a bit different at the 259 00:16:27,240 --> 00:16:30,280 Speaker 2: moment because you've got areas within Haiti that we operate 260 00:16:30,960 --> 00:16:33,280 Speaker 2: where we can't operate. We used to operate there two 261 00:16:33,360 --> 00:16:36,960 Speaker 2: years ago and today we don't operate. So we inform 262 00:16:37,040 --> 00:16:39,920 Speaker 2: the customers that we will have their shipment, but they 263 00:16:39,960 --> 00:16:42,360 Speaker 2: need to come to one of our local service centers 264 00:16:42,960 --> 00:16:45,840 Speaker 2: to pick it up. And most customers completely understand that 265 00:16:46,000 --> 00:16:48,720 Speaker 2: and get that, and for their own safety and well being, 266 00:16:48,760 --> 00:16:52,320 Speaker 2: they appreciate it. In Mexico, security has always been an 267 00:16:52,320 --> 00:16:56,560 Speaker 2: area of focus for us. We basically have visibility and 268 00:16:56,640 --> 00:17:00,160 Speaker 2: can track every single vehicle that we have. We have 269 00:17:00,760 --> 00:17:04,440 Speaker 2: cameras inside of our vehicles so that we can get 270 00:17:04,480 --> 00:17:06,879 Speaker 2: a hold and see of our employees. We can speak 271 00:17:06,920 --> 00:17:10,960 Speaker 2: to our employees from a central command center from a 272 00:17:10,960 --> 00:17:15,760 Speaker 2: security perspective live, we're able to turn off a vehicle. 273 00:17:16,480 --> 00:17:19,879 Speaker 2: If for some reason the vehicle is captured by someone 274 00:17:19,960 --> 00:17:23,000 Speaker 2: that is not one of our employees, we're able to 275 00:17:23,040 --> 00:17:27,600 Speaker 2: work with the local authorities from that perspective, and we 276 00:17:27,680 --> 00:17:31,199 Speaker 2: always tell our employees the following. If they don't feel 277 00:17:31,400 --> 00:17:34,520 Speaker 2: safe or they don't feel that they're going into an 278 00:17:34,560 --> 00:17:37,199 Speaker 2: area that is safe, then we ask them not to 279 00:17:37,280 --> 00:17:40,600 Speaker 2: go into that area and bring that shipment back and 280 00:17:40,640 --> 00:17:43,880 Speaker 2: we will communicate with the customer and work with them 281 00:17:43,920 --> 00:17:48,720 Speaker 2: on that. We're required. In some countries, or as an 282 00:17:48,720 --> 00:17:54,480 Speaker 2: example in Mexico, we might send a second individual in 283 00:17:54,600 --> 00:17:59,280 Speaker 2: the vehicle with our courier for protection purposes, and then 284 00:17:59,320 --> 00:18:02,800 Speaker 2: if need be, we would even have a chase vehicle 285 00:18:03,200 --> 00:18:07,160 Speaker 2: that is following the vehicle into an area. So as 286 00:18:07,240 --> 00:18:10,600 Speaker 2: an example, right now in Israel, we are making deliveries 287 00:18:11,359 --> 00:18:14,720 Speaker 2: and we got we got planes flying in every single 288 00:18:14,800 --> 00:18:19,840 Speaker 2: day into Israel, and our employees are going out within 289 00:18:19,880 --> 00:18:22,920 Speaker 2: a certain criteria a certain area, and they are wearing 290 00:18:22,960 --> 00:18:27,960 Speaker 2: a bulletproof vest. As an example, the employee feels safe, 291 00:18:29,160 --> 00:18:32,159 Speaker 2: but also the employee knows that they don't have to 292 00:18:32,200 --> 00:18:35,719 Speaker 2: go into an area, let's say in Israel or somewhere 293 00:18:35,760 --> 00:18:39,560 Speaker 2: else where they don't feel safe, and we've been very 294 00:18:39,600 --> 00:18:43,640 Speaker 2: successful in doing that up to now. 295 00:18:45,280 --> 00:18:48,560 Speaker 1: Gotcha, obviously, I hope all your employees get to go 296 00:18:48,640 --> 00:18:54,760 Speaker 1: home each night to their families after after after a shift, 297 00:18:54,920 --> 00:18:57,440 Speaker 1: you know, just switching, switching gears, I guess a little bit. 298 00:18:57,600 --> 00:19:02,200 Speaker 1: Can we talk about global air freight capacity just generally speaking? 299 00:19:03,160 --> 00:19:06,399 Speaker 1: You know, right now, it seems like a lot of 300 00:19:06,400 --> 00:19:09,520 Speaker 1: the capacity that went away during the pandemic has come back, 301 00:19:09,560 --> 00:19:12,800 Speaker 1: and we're pretty near, if not a little over, where 302 00:19:12,800 --> 00:19:15,280 Speaker 1: we were. Where do you see capacity and where do 303 00:19:15,320 --> 00:19:17,040 Speaker 1: you see where do you think it needs to go? 304 00:19:17,119 --> 00:19:18,880 Speaker 1: Either higher or lower for that matter? 305 00:19:19,000 --> 00:19:22,560 Speaker 2: Yeah, right now, the capacity for us right now, we 306 00:19:22,720 --> 00:19:29,600 Speaker 2: are we've got more more shipments and more volume than 307 00:19:29,640 --> 00:19:33,800 Speaker 2: the current capacity that we have, and our capacity is 308 00:19:33,880 --> 00:19:39,040 Speaker 2: back to twenty nineteen twenty twenty levels, and the demand 309 00:19:39,359 --> 00:19:42,520 Speaker 2: is greater than our capability to move in at the moment, 310 00:19:43,160 --> 00:19:45,399 Speaker 2: and it's probably going to be that way for the 311 00:19:45,400 --> 00:19:49,679 Speaker 2: next couple of weeks, which is a good problem to have. 312 00:19:50,760 --> 00:19:55,639 Speaker 2: Where we see that, it's basically the demand is heavily 313 00:19:55,760 --> 00:19:58,879 Speaker 2: right now out of southern China and Hong Kong, and 314 00:19:58,920 --> 00:20:02,600 Speaker 2: it's predominantly good going to Europe, and to the United States. 315 00:20:03,480 --> 00:20:09,879 Speaker 2: So we're working with the teams diligently to leverage where possible, 316 00:20:10,040 --> 00:20:13,520 Speaker 2: allocating more capacity. So we have. One of the great 317 00:20:13,560 --> 00:20:17,040 Speaker 2: things about having a fixed their network and having your 318 00:20:17,080 --> 00:20:22,359 Speaker 2: own network or having and also having additional you know, 319 00:20:22,480 --> 00:20:25,120 Speaker 2: third party suppliers that we've been working with for many, 320 00:20:25,160 --> 00:20:29,399 Speaker 2: many years is our ability to move equipment around into 321 00:20:29,440 --> 00:20:32,959 Speaker 2: markets where they're needed. So the team continues to flex 322 00:20:33,000 --> 00:20:37,439 Speaker 2: and move capacity around, which allows us to continue to 323 00:20:37,480 --> 00:20:40,480 Speaker 2: move the product flows that we have and meet the 324 00:20:40,560 --> 00:20:41,439 Speaker 2: customer demand. 325 00:20:42,080 --> 00:20:46,440 Speaker 1: Gotcha, you know, we on the Bloomberg Terminal customer our 326 00:20:46,440 --> 00:20:49,199 Speaker 1: customers can look at the air freight rates. One of 327 00:20:49,200 --> 00:20:51,520 Speaker 1: them that we look at as the East West air 328 00:20:51,520 --> 00:20:54,359 Speaker 1: freight rate at a Drewry, which increased about eight percent 329 00:20:54,400 --> 00:20:58,720 Speaker 1: sequentially in November. It's down about two percent from the 330 00:20:58,800 --> 00:21:03,119 Speaker 1: year prior. It's pretty interesting how well the air freight 331 00:21:03,240 --> 00:21:06,200 Speaker 1: rates have held up. Can you talk about the air 332 00:21:06,240 --> 00:21:09,080 Speaker 1: freight market, you know, where do you kind of see 333 00:21:09,080 --> 00:21:09,880 Speaker 1: it going from here? 334 00:21:10,200 --> 00:21:13,479 Speaker 2: Well, I mean, first of all, the air freight market 335 00:21:13,520 --> 00:21:19,679 Speaker 2: itself solids peak season about two months ago. Because in 336 00:21:19,760 --> 00:21:23,280 Speaker 2: air freight, when we're talking about cargo, air cargo, air freight, 337 00:21:23,359 --> 00:21:27,359 Speaker 2: air cargo and ocean. The lead of time, the school 338 00:21:27,440 --> 00:21:29,800 Speaker 2: of time for someone to get material that they would 339 00:21:29,840 --> 00:21:33,000 Speaker 2: have needed in December or November to be in the 340 00:21:33,080 --> 00:21:37,240 Speaker 2: stores for a Black Friday Cyber Monday that was ordered, 341 00:21:37,760 --> 00:21:41,080 Speaker 2: you know, about two months ago. So they are what 342 00:21:41,520 --> 00:21:44,320 Speaker 2: we would call out of their peak season. Where we 343 00:21:44,480 --> 00:21:47,720 Speaker 2: come into play is for companies that are saying, hey, 344 00:21:47,760 --> 00:21:51,880 Speaker 2: my shelves are dry and I need product now, and 345 00:21:51,920 --> 00:21:56,680 Speaker 2: they use a company like ours that has that fixed 346 00:21:56,760 --> 00:21:59,920 Speaker 2: air network and has daily flights that are coming out 347 00:22:00,080 --> 00:22:04,240 Speaker 2: and they can say, I need one hundred boxes coming 348 00:22:04,280 --> 00:22:08,439 Speaker 2: out of Southern China to the United States so I 349 00:22:08,440 --> 00:22:13,040 Speaker 2: can get it onto my shelves prior to Christmas and 350 00:22:13,119 --> 00:22:17,720 Speaker 2: prior to the holiday season. So that's where we're seeing 351 00:22:17,840 --> 00:22:23,119 Speaker 2: that from an air cargo air freight industry perspective, it 352 00:22:23,160 --> 00:22:27,679 Speaker 2: has it got more competitive and prices dropped out of 353 00:22:28,320 --> 00:22:30,879 Speaker 2: Southern China. In Hong Kong, we saw some of the 354 00:22:30,920 --> 00:22:35,840 Speaker 2: lowest rate. We saw rates that were even more aggressive 355 00:22:36,040 --> 00:22:41,480 Speaker 2: than pre COVID era of twenty nineteen, and then in 356 00:22:41,560 --> 00:22:44,719 Speaker 2: a very short period of time, less than fifteen days, 357 00:22:45,119 --> 00:22:49,600 Speaker 2: we saw it get right back up to where where 358 00:22:49,600 --> 00:22:53,520 Speaker 2: it is today. So the market is flex It flexes 359 00:22:53,600 --> 00:22:57,159 Speaker 2: down and flexes up rather quickly, and we've seen it 360 00:22:57,200 --> 00:23:01,800 Speaker 2: be very fluid in nature. From that perspective, you know, 361 00:23:01,880 --> 00:23:05,280 Speaker 2: we'll see that change right after Chinese New Year, so 362 00:23:05,320 --> 00:23:09,639 Speaker 2: you'll see a continuum that will go through uh you know, 363 00:23:09,760 --> 00:23:14,080 Speaker 2: all of January and early February, and then you'll see 364 00:23:14,760 --> 00:23:18,280 Speaker 2: a secondary drop again as you come out of Chinese 365 00:23:18,359 --> 00:23:20,840 Speaker 2: New Year. From that perspective, does that make sense? 366 00:23:21,160 --> 00:23:24,600 Speaker 1: Yeah, that makes perfect sense. And do you do you 367 00:23:24,640 --> 00:23:27,640 Speaker 1: expect rates to you know, when we when we get 368 00:23:27,640 --> 00:23:30,400 Speaker 1: out of the peak, to kind of normalize to pre 369 00:23:30,480 --> 00:23:33,760 Speaker 1: pandemic levels or do you think we're entering a new 370 00:23:33,800 --> 00:23:37,560 Speaker 1: normal because maybe there's not enough capacity out there, which 371 00:23:37,600 --> 00:23:38,119 Speaker 1: I can't believe. 372 00:23:38,119 --> 00:23:39,760 Speaker 2: It just came out of my mouth. I just said that. 373 00:23:41,359 --> 00:23:44,440 Speaker 2: I think I think you're gonna see I don't. I mean, 374 00:23:44,480 --> 00:23:47,440 Speaker 2: people can push to get back down to pre pandemic levels, 375 00:23:47,480 --> 00:23:51,119 Speaker 2: and I think that they're going to find themselves, uh where. 376 00:23:51,240 --> 00:23:54,919 Speaker 2: If they're doing that, it's because they're hurting from a 377 00:23:54,960 --> 00:23:57,560 Speaker 2: standpoint of volume, and they've got an aircraft that is 378 00:23:57,600 --> 00:23:59,919 Speaker 2: flying in the air and they got to cover whatever 379 00:24:00,119 --> 00:24:03,679 Speaker 2: type expense they got on from a lease or fuel 380 00:24:04,000 --> 00:24:07,760 Speaker 2: or insurance, et cetera. We will not chase to the 381 00:24:07,760 --> 00:24:12,480 Speaker 2: bottom from that perspective, because you know, we monitor our 382 00:24:12,560 --> 00:24:14,840 Speaker 2: margins and we want to make sure that we're covering 383 00:24:14,840 --> 00:24:18,280 Speaker 2: our expenses appropriately and that we're providing the highest level 384 00:24:18,320 --> 00:24:22,040 Speaker 2: of service at the same time, which is important from 385 00:24:22,040 --> 00:24:24,440 Speaker 2: that perspective. But I think what you will find after 386 00:24:24,560 --> 00:24:28,119 Speaker 2: Chinese New Year, you'll be somewhere between twenty nineteen and 387 00:24:28,160 --> 00:24:31,560 Speaker 2: where we are today, is what I would safely say 388 00:24:31,560 --> 00:24:32,520 Speaker 2: from that perspective. 389 00:24:33,160 --> 00:24:36,040 Speaker 1: Okay, And then you know, to ensure that you guys 390 00:24:36,080 --> 00:24:40,439 Speaker 1: are generating a certain return on investment, what levers do 391 00:24:40,480 --> 00:24:44,719 Speaker 1: you guys have on the pricing side do you have, 392 00:24:44,920 --> 00:24:48,000 Speaker 1: do you do use search charges, gener rate increases? What 393 00:24:48,040 --> 00:24:50,080 Speaker 1: do you do to ensure that you're getting that ROI? 394 00:24:50,119 --> 00:24:52,200 Speaker 1: And especially in this high inflationary environment. 395 00:24:52,280 --> 00:24:55,040 Speaker 2: Yeah? Sure, yeah, we all, I mean all of us 396 00:24:55,080 --> 00:24:57,280 Speaker 2: pretty much do the same things, right, But I mean 397 00:24:57,720 --> 00:25:02,840 Speaker 2: the question is how disciplined are you in not trying 398 00:25:02,880 --> 00:25:06,720 Speaker 2: to put yourself in a negative gross margin or negative 399 00:25:06,720 --> 00:25:10,639 Speaker 2: gross profit perspective, So all of us implement a general 400 00:25:10,720 --> 00:25:16,280 Speaker 2: rate increase. The general rate increase is basically used as 401 00:25:16,520 --> 00:25:20,760 Speaker 2: a tool to cover inflation. You know, things that you're 402 00:25:20,760 --> 00:25:25,040 Speaker 2: doing for your staff like merit increases, investments that you're 403 00:25:25,040 --> 00:25:28,400 Speaker 2: putting into the network to you know, not only continue 404 00:25:28,440 --> 00:25:33,000 Speaker 2: to sustain your levels of service, but provide better, you know, 405 00:25:33,080 --> 00:25:36,280 Speaker 2: services overall. So if you take a look at that, 406 00:25:36,359 --> 00:25:38,800 Speaker 2: everybody pretty much is on par when it comes to 407 00:25:39,520 --> 00:25:43,480 Speaker 2: general rate increases and it tends to follow that. Then 408 00:25:43,520 --> 00:25:45,359 Speaker 2: you start to take a look at, well, you know, 409 00:25:45,400 --> 00:25:48,880 Speaker 2: what are you doing around efficiencies of scale, using innovation, 410 00:25:49,640 --> 00:25:53,679 Speaker 2: using digitalization, what are you doing in that space? And 411 00:25:53,720 --> 00:25:56,840 Speaker 2: then what are you doing from an efficiency standpoint on 412 00:25:57,160 --> 00:26:00,720 Speaker 2: road so that then you can provide the small amount 413 00:26:00,800 --> 00:26:04,560 Speaker 2: of increase to your customer base UH and keep them 414 00:26:04,920 --> 00:26:08,719 Speaker 2: within your business. So we've been disciplined as an organization 415 00:26:08,840 --> 00:26:13,960 Speaker 2: around our pricing principles UH and what we do, and 416 00:26:14,080 --> 00:26:18,359 Speaker 2: we're definitely not going to be chasing the competition uh 417 00:26:18,400 --> 00:26:20,760 Speaker 2: to the bottom. You know, we will not chase the 418 00:26:20,880 --> 00:26:24,320 Speaker 2: race of the bottom on pricing because then what ultimately 419 00:26:24,400 --> 00:26:28,240 Speaker 2: happens is that it affects your service levels to your 420 00:26:28,240 --> 00:26:32,560 Speaker 2: customers UH, and you provide something that is not long 421 00:26:32,680 --> 00:26:33,960 Speaker 2: term or sustainable. 422 00:26:34,240 --> 00:26:37,680 Speaker 1: From that perspective, do you do you have to pay 423 00:26:37,720 --> 00:26:43,400 Speaker 1: your employees more in higher security uh, higher risk security 424 00:26:43,400 --> 00:26:46,959 Speaker 1: areas that you're mentioning Israel people wearing bulletproof vests. I mean, 425 00:26:47,000 --> 00:26:49,400 Speaker 1: do they get combat pay? I know that might sound 426 00:26:49,400 --> 00:26:50,200 Speaker 1: like a silly question. 427 00:26:50,359 --> 00:26:53,800 Speaker 2: There is high risk areas and you do you do 428 00:26:53,960 --> 00:27:01,360 Speaker 2: factor that into the overall remuneration that we pay employees. Gotcha? 429 00:27:02,040 --> 00:27:05,560 Speaker 1: So just switching gears a little bit. You know you're 430 00:27:05,640 --> 00:27:08,800 Speaker 1: a long time supply chain person, been been doing it 431 00:27:08,840 --> 00:27:12,359 Speaker 1: for a long time. Is there a book about supply 432 00:27:12,480 --> 00:27:16,399 Speaker 1: chain that you read, either recently or when you're you know, 433 00:27:16,520 --> 00:27:20,919 Speaker 1: a young man starting starting out your career that you 434 00:27:20,960 --> 00:27:21,399 Speaker 1: really like? 435 00:27:21,720 --> 00:27:24,399 Speaker 2: Well, look, I think for me, in the space of 436 00:27:24,480 --> 00:27:29,280 Speaker 2: supply chain four d X, so anything related to the 437 00:27:29,359 --> 00:27:33,119 Speaker 2: four disciplines of execution, I think would be a book 438 00:27:33,160 --> 00:27:37,520 Speaker 2: that I would highly encourage anybody to read within the business. 439 00:27:37,640 --> 00:27:39,760 Speaker 2: And then I spent a lot more time in the 440 00:27:39,760 --> 00:27:43,439 Speaker 2: space of leadership, constantly going back to your first ninety days. 441 00:27:44,240 --> 00:27:46,480 Speaker 2: One of my favorite books is Who Moved? You know? 442 00:27:46,520 --> 00:27:50,320 Speaker 2: Who Moved My Cheese? Great books to look at from 443 00:27:50,320 --> 00:27:55,200 Speaker 2: a from a leadership standpoint, allowing us always to keep 444 00:27:55,280 --> 00:28:01,399 Speaker 2: fresh from from that perspective. And then you know, the 445 00:28:01,440 --> 00:28:05,240 Speaker 2: war for Kindness would be the last book that I 446 00:28:05,280 --> 00:28:09,440 Speaker 2: would say, and it's something that I've actually got right here, 447 00:28:09,480 --> 00:28:13,720 Speaker 2: and it's you know, Building Empathy in a Fractured World 448 00:28:13,760 --> 00:28:18,320 Speaker 2: by Jamil Zaki is another one that I would recommend, 449 00:28:18,600 --> 00:28:21,280 Speaker 2: and that's you know, how to treat people with respect. 450 00:28:21,680 --> 00:28:24,000 Speaker 2: You know, we're a results driven company, but we say 451 00:28:24,040 --> 00:28:27,080 Speaker 2: without compromising, respect focused behaviors. 452 00:28:27,920 --> 00:28:32,560 Speaker 1: Right, Okay, those sound like all good good reads. So 453 00:28:32,920 --> 00:28:35,080 Speaker 1: you know kind of we're going to wrap it up 454 00:28:35,119 --> 00:28:37,240 Speaker 1: here pretty soon. I just you know, wanted to know. 455 00:28:37,400 --> 00:28:39,360 Speaker 1: You know, you have a lot of responsibility, a lot 456 00:28:39,400 --> 00:28:43,400 Speaker 1: of employees reporting up into the organization. You know, what 457 00:28:43,680 --> 00:28:46,200 Speaker 1: keeps you up at night being a leader at DHL 458 00:28:46,240 --> 00:28:48,240 Speaker 1: Express Americas, you know. 459 00:28:48,200 --> 00:28:52,320 Speaker 2: For me is the safety and well being of our employees. 460 00:28:53,200 --> 00:28:57,080 Speaker 2: So you know, there's been over the last I would say, 461 00:28:57,720 --> 00:29:01,400 Speaker 2: you know, two years, and I think back to what 462 00:29:01,640 --> 00:29:06,480 Speaker 2: we ever have seen a war between Russia and Ukraine 463 00:29:07,000 --> 00:29:10,440 Speaker 2: and a war that has lingered for two years. Would 464 00:29:10,480 --> 00:29:12,400 Speaker 2: have never I would have never thought that was going 465 00:29:12,480 --> 00:29:15,040 Speaker 2: to happen. Would you ever have seen you know, what's 466 00:29:15,080 --> 00:29:18,600 Speaker 2: taken place in Israel as of late, where you know, 467 00:29:19,280 --> 00:29:23,240 Speaker 2: young men and women are sitting at a at a 468 00:29:23,240 --> 00:29:28,280 Speaker 2: at a music festival and they came under attack. From 469 00:29:28,320 --> 00:29:32,480 Speaker 2: that perspective, UH, so that that that keeps me up 470 00:29:33,440 --> 00:29:37,400 Speaker 2: at night. A bit of the political uncertainty in certain 471 00:29:37,440 --> 00:29:40,440 Speaker 2: countries and a lot of the political you know, shifts 472 00:29:40,440 --> 00:29:45,600 Speaker 2: and changes that are taking place, keeps me up at 473 00:29:45,720 --> 00:29:51,959 Speaker 2: night from that perspective. So just not knowing what's going 474 00:29:52,040 --> 00:29:56,320 Speaker 2: to happen next, uh and how volatile and how quickly 475 00:29:56,480 --> 00:29:59,880 Speaker 2: things could change for the well the likely you know, 476 00:30:00,160 --> 00:30:04,760 Speaker 2: life and well beings of our employees as well as 477 00:30:04,800 --> 00:30:08,280 Speaker 2: the countries that we operate in. We operate in every country, 478 00:30:09,560 --> 00:30:13,400 Speaker 2: so you know, we're used to we're used to uncertainty, 479 00:30:14,720 --> 00:30:19,800 Speaker 2: but these are at a next level and we continue 480 00:30:19,840 --> 00:30:24,239 Speaker 2: to operate. So we continue to operate in the Ukraine, UH, 481 00:30:24,920 --> 00:30:28,040 Speaker 2: you know, on the the most on the you know, 482 00:30:28,400 --> 00:30:29,880 Speaker 2: close to the border of Poland. 483 00:30:30,400 --> 00:30:30,680 Speaker 1: UH. 484 00:30:30,720 --> 00:30:35,880 Speaker 2: And we're sending across humanitarian aid, we're sending across uh, 485 00:30:35,920 --> 00:30:40,800 Speaker 2: you know, important documents that are going from embassies either 486 00:30:40,880 --> 00:30:45,120 Speaker 2: into the Ukraine. We continue to operate there. We we 487 00:30:45,240 --> 00:30:49,280 Speaker 2: haven't stopped operating in Israel. UH. And again you know, 488 00:30:50,000 --> 00:30:53,200 Speaker 2: we stand with the people of Israel from that perspective, 489 00:30:53,240 --> 00:30:56,800 Speaker 2: but we haven't stopped operating, and people are really thankful 490 00:30:56,840 --> 00:31:00,560 Speaker 2: for the fact that a company like DHL is still 491 00:31:00,600 --> 00:31:05,479 Speaker 2: continuing to bring goods into Israel that are needed on 492 00:31:05,480 --> 00:31:08,720 Speaker 2: a day to day basis from that perspective, So those 493 00:31:08,760 --> 00:31:11,240 Speaker 2: are the things that keep me up the growth that's 494 00:31:11,280 --> 00:31:14,400 Speaker 2: happening today. You know, the things that I love about 495 00:31:14,440 --> 00:31:18,400 Speaker 2: this job is, you know, creating jobs. I say, trade 496 00:31:18,520 --> 00:31:22,640 Speaker 2: equals jobs. So any chance that we can create new employment, 497 00:31:23,200 --> 00:31:26,360 Speaker 2: any chance that we can see people within our organization 498 00:31:26,560 --> 00:31:30,400 Speaker 2: grow and develop, it's going to help to make the 499 00:31:30,440 --> 00:31:32,800 Speaker 2: world a better place. And you know, we say at 500 00:31:32,880 --> 00:31:38,640 Speaker 2: DHL that you know, we are responsible for making a 501 00:31:38,640 --> 00:31:42,800 Speaker 2: world a better place through our efforts around sustainability, and 502 00:31:42,880 --> 00:31:48,200 Speaker 2: our mission is connecting people, improving lives. So that's that's 503 00:31:48,240 --> 00:31:51,000 Speaker 2: the great thing and what keeps me coming every single 504 00:31:51,040 --> 00:31:52,240 Speaker 2: day to this office. 505 00:31:52,480 --> 00:31:55,040 Speaker 1: All Right, great, I think we're gonna end it on 506 00:31:55,080 --> 00:31:58,320 Speaker 1: that positive note. I want to really thank you for 507 00:31:58,320 --> 00:32:02,040 Speaker 1: your time Mike today, and I really enjoyed learning more 508 00:32:02,160 --> 00:32:06,280 Speaker 1: not only about you, but DHL Express America's so thank 509 00:32:06,320 --> 00:32:06,720 Speaker 1: you for that. 510 00:32:07,480 --> 00:32:10,440 Speaker 2: Thank you, Lee, I appreciate your time and the interest 511 00:32:10,600 --> 00:32:12,959 Speaker 2: in speaking not only to me, but hearing a bit 512 00:32:13,000 --> 00:32:13,800 Speaker 2: about DHL. 513 00:32:14,200 --> 00:32:16,440 Speaker 1: All right, great, Well, I want to thank everyone for 514 00:32:16,520 --> 00:32:19,000 Speaker 1: tuning in and if you liked the episode, please subscribe 515 00:32:19,040 --> 00:32:21,440 Speaker 1: and leave a review. We've lined up a number of 516 00:32:21,440 --> 00:32:23,840 Speaker 1: great guests for the podcast, so check back to hear 517 00:32:23,920 --> 00:32:28,080 Speaker 1: conversations with C suite executives, shippers, regulators, and decision makers 518 00:32:28,120 --> 00:32:31,760 Speaker 1: within the freight transportation markets. Also, if you have any 519 00:32:31,880 --> 00:32:34,600 Speaker 1: ideas for future episodes, please hit me up on the 520 00:32:34,680 --> 00:32:39,160 Speaker 1: terminal or on Twitter at logistics Lee. Thanks everybody, take 521 00:32:39,160 --> 00:32:42,920 Speaker 1: care and be safe.