DHL Express, the world’s leading international express delivery provider and Cargojet Inc. announced on March 29, 2022 that they have entered into a new long-term strategic agreement that will further strengthen the global DHL aviation network.

The five year agreement, with a renewal option for an additional two years, will see Cargojet provide ACMI, CMI, charter, and aircraft dry lease services to DHL to support DHL’s international requirements for Europe and North, South, Central and Latin America, as well as Asia. Cargojet currently utilizes 12 freighters to service DHL’s requirements. DHL intends to add 5 additional B767 freighters during the 2022-23 timeframe to fulfill its anticipated network requirements, building on the rapid expansion of the company’s air network in the last two years. In the Americas, DHL increased its overall aviation capacity by 18% for the 2021 peak season in response to surging demand, particularly in the e-commerce segment. It recently added a new weekly air connection from Vietnam to the U.S., adding 102 tons of additional capacity for customers shipping out of Asia into the Americas region.


Additionally, DHL intends to be Cargojet’s inaugural launch customer for the state-of-the-art Boeing 777F wide body long-range conversion cargo aircraft, which are expected to be deployed in late 2023 or early 2024. The more fuel-efficient freighter will support DHL’s efforts to improve the carbon footprint of its transportation operations while enabling customer growth. Since 2018, DHL has purchased 28 new Boeing 777F to add to the company’s global fleet, many of which serve points between the Americas region and the rest of the world.

In addition, to align interests and strengthen the long-term strategic relationship, Cargojet will issue to DHL warrants to acquire up to 9.5 percent of Cargojet’s outstanding voting shares (on a non-diluted basis as of the date hereof) at a price of C$158.92 per share (based on the 20-day volume weighted average trading price immediately prior to the date hereof) over a period of seven years, with vesting tied to the delivery by DHL of up to C$2.3 billion in business volume during the same term.