NewsBite

Three UK Formula One teams dodge scratching from Australian Grand Prix, thanks to DHL Express

DHL Express pulled out all stops at the weekend to overcome sea freight delays to ensure three British Formula One teams could compete at the Australian Grand Prix.

A jogger runs past a forklift driver unpacking Grand Prix team crates on the main straight of Albert Park. Picture: David Caird
A jogger runs past a forklift driver unpacking Grand Prix team crates on the main straight of Albert Park. Picture: David Caird

Australia’s Formula One Grand Prix has returned after three years and a dramatic pandemic-fuelled cancellation in 2020, but three teams almost did not make the starting line.

While international travel has resumed and life is steadily returning to normal, the mammoth logistics exercise of transporting Formula One teams and equipment remains a challenge.

Deutsche Post-owned DHL Express has been tasked with freighting 1400 tonnes of cars, tyres and even broadcast equipment across the globe to Melbourne’s Albert Park and the 22 other Formula One grands prix each year.

Planes, ships and trucks have all been deployed to make the event happen to overcome a Covid-led supply chain crunch. But even among the best laid plans, three British teams found themselves caught in sea freight delays – including in the Suez Canal despite its reopening – from Europe.

DHL Express Australia chief executive Gary Edstein said the three teams – who he did not name but one of which is believed to be Williams – had their equipment rerouted via Singapore where it left a ship and boarded a dedicated DHL air freighter bound for Melbourne.

“That happened over the weekend – about 150 tonnes of equipment,” Mr Edstein said.

“There are bottlenecks right throughout those shipping lands, so we offloaded in Singapore onto dedicated freighters. We had to use a couple of 777s and 767s to get all that equipment down.

“If we didn’t, those three teams wouldn’t be racing on the weekend. So it came down to the wire.”

DHL global head of brand and marketing Arjan Sissing and DHL Australia boss Gary Edstein have overseen the transport of 1400 tonnes of Grand Prix equipment to Albert Park.
DHL global head of brand and marketing Arjan Sissing and DHL Australia boss Gary Edstein have overseen the transport of 1400 tonnes of Grand Prix equipment to Albert Park.

Global supply chains have been up-ended during the pandemic after, with at one point more than 90 per cent of commercial passenger planes grounded. Despite having their own freighters, logistics companies such as DHL and Australia Post still used cargo space in commercial planes to transport freight.

In DHL’s case, pre-pandemic, 70 to 80 per cent of its freight volume was carried via commercial aircraft. Now the situation has reversed, with DHL investing heavily in expanding its own fleet of planes.

“We’ve got 70 to 80 per cent on dedicated freighters now and only about 15-20 per cent on commercial – and we don’t see that changing in the long-term,” Mr Edstein said.

“Three years ago we didn’t really have dedicated DHL air freighters coming through here. Now we’ve got 30 services a week.”

DHL’s global network has also been used to transport 2 billion Covid-19 vaccines to 176 countries, including 40 million to Australia, helping ensure mass public events like the Grand Prix can proceed.

DHL global head of brand and marketing Arjan Sissing, who is in Melbourne for the Grand Prix, says he still gets “goosebumps” when thinking about the 2020 event, which was cancelled as fans lined up at Albert Park’s gates.

“I’m based in Germany and I ordered my taxi on the Monday or Tuesday to pick me up at 8:30am to drive me to the airport,” Mr Sissing recalls.

“I was in contact with our folks on the ground in Melbounre and said “hey, is it still a good idea to come down because it’s quite a trip”. Two hours later, the Grand Prix was cancelled, so I still get goosebumps when I talk about that because it was such a right decision in a dreadful situation.

“We are very happy that now three years later after 2019, we have a full event going on again.”

But challenges remain.

Russia’s invasion of Ukraine – Europe’s biggest armed conflict since WWII – has sent oil prices soaring, includian aviation fuel.

At the same time, airlines around the world are rerouting flight paths following a surge in airspace restrictions stemming from Russia’s invasion of Ukraine.

DHL has suspended inbound services to Russia and Belarus and has banned shipments from those countries after it halted its operations there “until further notice”.

Mr Sissing said “we need to look after our people and ensure they are safe”.

“First of all it’s a very difficult situation. Everyone wants to see this situation, this crisis, ending as soon as possible. That’s point No. 1,” he said.

“We have had some constraints. We can deal with that. It’s nothing in comparison to what is going on the ground there (Ukraine).

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.theaustralian.com.au/business/companies/three-uk-formula-one-teams-dodge-scratching-from-australian-grand-prix-thanks-to-dhl-express/news-story/84f28da9488a2b7f876a17f133481caf