DANISH transport and logistics company DSV's airfreight volumes benefited from strong demand out of Asia in the first quarter of the year, although revenue and profit fell as rates dropped in the market.
The forwarder's airfreight volumes increased 2.3 per cent in the first quarter of 2024 to 335,213 tonnes, compared to 327,712 tonnes in the same period last year.
'The air freight market is impacted by continued high growth in e-commerce volumes from China, driving both market volumes and rates up.'
dsv noted that the airfreight market is dealing with overcapacity but reflected that it expects that retirement of old aircraft will offset some of this excess capacity.
However, airfreight revenue dropped 14.7 per cent and airfreight gross profit fell 22.2 per cent, reports London's Air Cargo News.
Overall, the Air & Sea division recorded an 11.5 per cent decline in revenue for the first quarter. 'Revenue was impacted by higher volumes in both air and sea, but this was offset by lower average freight rates,' said DSV.
Plus, gross profit for the division fell 16.2 per cent, reflecting a normalization of freight rates and yields, said DSV. 'This was caused by lower gross profit yields, partly offset by volume growth for both air and sea,' noted the company.
Across the whole group, revenue declined 5 per cent to DKK38.4 billion (US$5.5 billion) and gross profit declined 8.6 per cent to DKK10.3 billion.
Jens Lund, group chief executive, said: 'We are off to a good start delivering strong financial results in the first quarter of 2024, and I'm particularly satisfied that we are gaining market shares in all three divisions. We do this in a market that is normalizing after a few very volatile years following the Covid pandemic.'
SeaNews Turkey
The forwarder's airfreight volumes increased 2.3 per cent in the first quarter of 2024 to 335,213 tonnes, compared to 327,712 tonnes in the same period last year.
'The air freight market is impacted by continued high growth in e-commerce volumes from China, driving both market volumes and rates up.'
dsv noted that the airfreight market is dealing with overcapacity but reflected that it expects that retirement of old aircraft will offset some of this excess capacity.
However, airfreight revenue dropped 14.7 per cent and airfreight gross profit fell 22.2 per cent, reports London's Air Cargo News.
Overall, the Air & Sea division recorded an 11.5 per cent decline in revenue for the first quarter. 'Revenue was impacted by higher volumes in both air and sea, but this was offset by lower average freight rates,' said DSV.
Plus, gross profit for the division fell 16.2 per cent, reflecting a normalization of freight rates and yields, said DSV. 'This was caused by lower gross profit yields, partly offset by volume growth for both air and sea,' noted the company.
Across the whole group, revenue declined 5 per cent to DKK38.4 billion (US$5.5 billion) and gross profit declined 8.6 per cent to DKK10.3 billion.
Jens Lund, group chief executive, said: 'We are off to a good start delivering strong financial results in the first quarter of 2024, and I'm particularly satisfied that we are gaining market shares in all three divisions. We do this in a market that is normalizing after a few very volatile years following the Covid pandemic.'
SeaNews Turkey
