DSV reported a decrease in cargo volumes, dropping from 375,990 tonnes in the third quarter of 2022 to 324,436 tonnes in the same period this year, reports London's Air Cargo News.
In line with its previous assessment of the first quarter, DSV characterized the air and sea freight market in the third quarter as having reduced volumes and notably lower freight rates, particularly in the realm of air freight.
The Air & Sea division's revenue in the third quarter declined 48.7 per cent year-on-year, reaching DKK21,912 million.
The gross profit for the three-month period fell 27.7 per cent compared to the same quarter in 2022, totaling DKK 6,210 million.
Air freight experienced a more pronounced decline than sea freight due to reduced volumes and lower yields, as per DSV's evaluation.
Airfreight revenue amounted to DKK 11,691 million (compared to DKK 22,499 million in the third quarter of the previous year), and quarterly airfreight gross profits decreased from DKK 4,793 million to DKK 3,089 million year on year.
Over the first nine months of 2023, DSV observed a decline in demand for air and sea freight, attributed to broader macroeconomic deceleration, a shift in consumer preferences from goods to services, and a tendency to reduce inventory levels.
Air cargo volumes saw a 19 per cent decline, totalling 968,604 tonnes during the nine-month reporting period. The weakest performance was noted in exports from the Asia Pacific region, particularly within the retail, high-tech, and industrial sectors.
A statement noted that as more passenger planes have returned to the market, more belly-space cargo capacity has become available.
In combination with weak demand, this has led to overcapacity and declining airfreight rates. During Q3, this was partly offset by higher fuel prices.
DSV's airfreight volume development for the January-October period lagged behind the general market level. The company attributed this to its pricing discipline and focus on high-yield cargo.
While DSV acknowledged a gradual improvement in air and sea volume growth in the third quarter compared to the first half of 2023, the forwarder clarified that this was primarily due to the lower comparative figures from Q3 2022 and did not reflect an inherent increase in demand in 2023.
SeaNews Turkey
In line with its previous assessment of the first quarter, DSV characterized the air and sea freight market in the third quarter as having reduced volumes and notably lower freight rates, particularly in the realm of air freight.
The Air & Sea division's revenue in the third quarter declined 48.7 per cent year-on-year, reaching DKK21,912 million.
The gross profit for the three-month period fell 27.7 per cent compared to the same quarter in 2022, totaling DKK 6,210 million.
Air freight experienced a more pronounced decline than sea freight due to reduced volumes and lower yields, as per DSV's evaluation.
Airfreight revenue amounted to DKK 11,691 million (compared to DKK 22,499 million in the third quarter of the previous year), and quarterly airfreight gross profits decreased from DKK 4,793 million to DKK 3,089 million year on year.
Over the first nine months of 2023, DSV observed a decline in demand for air and sea freight, attributed to broader macroeconomic deceleration, a shift in consumer preferences from goods to services, and a tendency to reduce inventory levels.
Air cargo volumes saw a 19 per cent decline, totalling 968,604 tonnes during the nine-month reporting period. The weakest performance was noted in exports from the Asia Pacific region, particularly within the retail, high-tech, and industrial sectors.
A statement noted that as more passenger planes have returned to the market, more belly-space cargo capacity has become available.
In combination with weak demand, this has led to overcapacity and declining airfreight rates. During Q3, this was partly offset by higher fuel prices.
DSV's airfreight volume development for the January-October period lagged behind the general market level. The company attributed this to its pricing discipline and focus on high-yield cargo.
While DSV acknowledged a gradual improvement in air and sea volume growth in the third quarter compared to the first half of 2023, the forwarder clarified that this was primarily due to the lower comparative figures from Q3 2022 and did not reflect an inherent increase in demand in 2023.
SeaNews Turkey