Deutsche Post’s weak forwarding arm hits Q1 operating profits

First quarter 2015 airfreight volumes at German logistics giant Deutsche Post DHL rose by just 0.3 per cent to 935,000 tonnes, with group operating profits hit by the “weak performance” of the Global Forwarding and Freight business.
Although the forwarding unit’s quarterly reported revenues increased by 7.6 per cent to €3.8bn, the division’s operating profit experienced a “sharp decline” to €17m in the January to March period versus 2014.
In late April, the company announced that Roger Crook, chief executive of the global freight forwarding arm, had stepped down for personal reasons.
On the latest results, the company stated: “The weak performance of the global forwarding business unit requires a review of the transformation course by the new management.
“This review will be based on the analysis of the pilots as well as the impact of the global reorganisation that has already taken place. The results of this review will determine the further approach.”
DP DHL said that airfreight margins continued to be low compared with historical averages. Airfreight revenue in the first quarter of 2015 grew by 11.9 per cent to nearly €1.3bn.
“In light of the falling oil price, major customers engaged in aggressive competitive tendering in the second half of the prior year. Moreover, a number of new products were introduced to the consumer goods market.
“This caused transport capacity utilisation and rates to increase on the very busy routes from Asia.”
DP DHL Group expects global growth across the entire logistics sector to be “moderate at best” in 2015. 
Source DP DHL:

Share this story

Related Topics

Latest europe news

MSC Air Cargo adds first Malpensa flights following AlisCargo takeover

MSC Air Cargo has conducted its first flight from Milan Malpensa Airport (MXP) following its takeover of AlisCargo Airlines. The…

Read More

Share this story

One Air calls for UK-EU agreement to curb 747 strife

One Air is lobbying the new UK government to establish a bilateral agreement with the European Union (EU) that makes…

Read More

Share this story

OIA expands to Ireland with acquisition of Sandford Freight

US supply chain services company OIA Global has extended its European network to Ireland with the acquisition of Dublin-based multimodal…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.