DHL Extends Contract with Cargojet – A Strategic Move to Strengthen the Global Air Cargo Supply Chain

For Vietnam — a dynamic export-driven economy — these changes are not merely news headlines, but both a warning and an opportunity to adjust strategies, upgrade infrastructure, and seek a higher position in the global supply chain.

Starting today, Vietnam Logistics Review (VLR) will sequentially publish a series of articles addressing current key issues in the air logistics sector.

In a global air cargo market under pressure from trade volatility and declining consumer demand, DHL’s early extension of its contract with Cargojet until 2033 signals a proactive strategy to strengthen transport capacity, expand network coverage, and optimize costs. This agreement not only has a significant impact on the North American market but also opens new opportunities and challenges for Vietnam’s air logistics sector.

A step-ahead deal with direct market implications
On August 6, 2025, DHL Express announced the extension of its air cargo contract with Cargojet — Canada’s leading air cargo carrier — until March 31, 2033, with an option to extend for an additional four years. The new agreement is estimated to be worth around USD 2.3 billion, while DHL’s equity stake in Cargojet will decrease from 9.5% to 6.6%.

Notably, DHL made this move four years ahead of the expiry of the current contract. This demonstrates caution in the face of global capacity volatility, as high fuel costs and price competition from low-cost carriers continue to exert pressure.

Cargojet – the “golden link” in DHL Express’s network
Cargojet operates a dedicated fleet of Boeing 767 and Boeing 757 aircraft, covering Canada, the US, and connecting to international hub airports. The airline is especially strong in the “overnight express” segment — next-day delivery — which is DHL’s core business in the North American market.

According to its Q2 2025 report, Cargojet recorded a 7% year-on-year increase in core revenue, defying the overall industry downturn. This success is partly driven by domestic e-commerce growth and tailor-made charter services.

For DHL, retaining a partner like Cargojet is not just about transport capacity; it is also about securing On-Time Performance — a decisive factor in winning and maintaining the trust of premium customers.

Implications for Vietnam’s air logistics sector
Although Vietnam currently has no direct cargo flights to Canada, air freight routes from Ho Chi Minh City and Hanoi via hubs such as Hong Kong, Incheon, and Anchorage serve export demand to North America.

With DHL strengthening its network in Canada and the US, Vietnamese exports — particularly electronics, textiles, and fresh seafood — could benefit from faster delivery times and more stable connections.

However, this also places demands on Vietnamese logistics companies to upgrade cold storage facilities, adopt international-standard packaging processes, and improve airport handling capacity to meet the requirements of major carriers like DHL.

The trend of “locking in” capacity amid global competition
DHL’s long-term contract with Cargojet reflects a clear trend: “locking in” capacity ahead of market volatility. Since the pandemic, the logistics industry has faced severe freighter shortages, with ACMI lease rates doubling compared to pre-2020 levels.

Major carriers are now seeking to own or secure long-term control over their fleets to avoid dependence on the volatile short-term leasing market. This could intensify competition for slot allocations, especially at major airports like Hong Kong, Los Angeles, or Singapore.

Opportunities and challenges for Vietnam
The extension of DHL’s contract with Cargojet until 2033 is not merely a commercial partnership, but also a signal that global logistics giants are proactively preparing for a new growth cycle, despite the current uncertainties.

For Vietnam, it is a reminder that to seize opportunities from international supply chain linkages, the domestic logistics industry must invest more heavily in infrastructure, standardize services, and integrate advanced transport management technologies. If done well, Vietnam can not only remain a point of origin for goods but also become a strategic link in the global logistics network.

By Van Tam