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DHL Global Forwarding posts first quarterly volume rise since Q1 2015

DHL Global Forwarding has recorded a two per cent year-on-year increase in air freight export tonnage during the third quarter to 520,000 tonnes, ending five consecutive quarterly demand declines.

However, air freight turnover in the third quarter fell by 8.8 per cent compared to the same period a year earlier and gross profits for the mode fell by 5.2 per cent to EUR220 million (US$241.3 million), reported Air Cargo News.

The improvement in demand also lags behind Kuhne + Nagel's growth of 3.8 per cent, Panalpina's 10 per cent and DSV's 84.5 per cent, although the latter two benefitted from acquisitions.

DHL Global Forwarding was cited as saying: "New business acquired in the first half of the year is beginning to have a positive effect on volumes, although the market as a whole is declining, especially in the technology sector.

"Air freight prices remain under pressure due to large surplus capacities and low fuel costs."

Overall third quarter forwarding revenues fell by 6.3 per cent year on year to EUR3.4 billion and earnings before interest and tax improved to a EUR63 million compared with a EUR337 million loss in 2015 as a result of a decision to write off an IT project at a cost of EUR345 million.

The company said performance during the period was affected by exchange rates, lower fuel surcharges and lower air and ocean freight rates.

Deutsche Post DHL Group chief executive Frank Appel said: "We are taking an increasingly active role in the dynamic development of e-commerce all over the world and are continuing to invest in this segment."