News Content
DHL, K+N, DB Schenker, UPS remain top air forwarders of 2016
OVERALL air freight demand among the top 25 forwarders globally rose by 5.6 per cent in 2016 compared to the previous year to reach 14.5 million tons.
The overall market is estimated to have increased by two per cent, according to the latest top 25 Global Freight Forwarders list from consultant Armstrong & Associates.
In contrast, overall revenues decreased 8.8 per cent against 2015 levels to US$172 billion as a result of air and ocean freight rate pressure, currency fluctuations and lower fuel surcharges, reported London's Air Cargo News.
DHL Global Forwarding, Kuehne + Nagel (K+N), DB Schenker and UPS maintained their position as the leading four air freight forwarders in 2016, while DSV's acquisition of UTi propelled it up the list.
The largest air freight forwarder was again DHL Supply Chain and Global Forwarding, despite a decline in air cargo traffic of 1.3 per cent year on year to 2.1 million tons.
However, during the first quarter of 2017, the company registered a 12.2 per cent year-on-year improvement in air tonnages to 534,000 tonnes.
DHL blamed the decline in 2016 revenues on lower demand, lower sea and air rates, lower fuel surcharges and currency effects.
K+N, meanwhile, continued to close the gap on DHL, although it still lags far behind its German rival.
The Swiss-based firm saw air cargo traffic increase 4.3 per cent year on year to reach 1.3 million tons.
K+N said that the improvement was down to its industry-specific air freight solutions, such as KN EngineChain, a specialised service package for production and spare parts logistics as well as the maintenance of aircraft engines.
"K+N's leading solution for temperature-sensitive goods, pharmaceutical or perishable products, generated significant new business. The improved margins and operational efficiency led to further growth in profitability," it said in a statement.
K+N benefitted from an end-of-year surge in demand, which saw air freight volumes increase 10.4 per cent in the final quarter of the year.
Third placed DB Schenker pointed out that it managed an increase in air freight demand, of 4.5 per cent year on year to 1.2 million tons.
"In 2016, volumes were driven by perishable goods, industrial intermediates, chemicals and consumer goods, with virtually all sectors recording stagnating or declining development," said DB Schenker.
The fastest grower in the list was Danish company DSV. It climbed seven places to become the ninth largest air freight forwarder, with volumes increasing by 84.7 per cent compared with 2015 to 574,644 tonnes.
The improvement was due to its acquisition of UTi, which finished 2015 as the 15th biggest air forwarder.
DSV said that the market was boosted by certain one-off events in the second half of 2016: disrupted supply chains following the financial collapse of Hanjin and a high activity level, especially in Asia.
The market was characterised by "periods with overcapacity and intense competition, but also peaks with lack of capacity". This resulted in highly volatile freight rates.
Revenue growth lagged behind air freight volume improvements as a result of the volatile market and also because of UTi's strength in air freight compared with sea freight.
Panalpina also saw air freight demand improve by a double-digit percentage as it registered a 10.2 per cent improvement to 921,400 tonnes.
An acquisition was also behind this company's improvement as its purchase of Kenya-based Airflo, which specialises in perishables, compensated for declines in its oil and gas business.
In the first quarter of 2017, air freight demand improved by eight per cent to 233,000 tonnes. If the forwarder were to continue to grow at this rate it would be on the verge of joining the one million tonne club with DHL, K+N and DB Schenker.
Another fast-growing forwarder was GEODIS in 2016, which registered a 10.4 per cent year-on-year improvement in air freight volumes to 330,000 tons.
Again, an acquisition helped fuel growth, as the company acquired forwarder OHL as it expanded its presence in the US.
The overall market is estimated to have increased by two per cent, according to the latest top 25 Global Freight Forwarders list from consultant Armstrong & Associates.
In contrast, overall revenues decreased 8.8 per cent against 2015 levels to US$172 billion as a result of air and ocean freight rate pressure, currency fluctuations and lower fuel surcharges, reported London's Air Cargo News.
DHL Global Forwarding, Kuehne + Nagel (K+N), DB Schenker and UPS maintained their position as the leading four air freight forwarders in 2016, while DSV's acquisition of UTi propelled it up the list.
The largest air freight forwarder was again DHL Supply Chain and Global Forwarding, despite a decline in air cargo traffic of 1.3 per cent year on year to 2.1 million tons.
However, during the first quarter of 2017, the company registered a 12.2 per cent year-on-year improvement in air tonnages to 534,000 tonnes.
DHL blamed the decline in 2016 revenues on lower demand, lower sea and air rates, lower fuel surcharges and currency effects.
K+N, meanwhile, continued to close the gap on DHL, although it still lags far behind its German rival.
The Swiss-based firm saw air cargo traffic increase 4.3 per cent year on year to reach 1.3 million tons.
K+N said that the improvement was down to its industry-specific air freight solutions, such as KN EngineChain, a specialised service package for production and spare parts logistics as well as the maintenance of aircraft engines.
"K+N's leading solution for temperature-sensitive goods, pharmaceutical or perishable products, generated significant new business. The improved margins and operational efficiency led to further growth in profitability," it said in a statement.
K+N benefitted from an end-of-year surge in demand, which saw air freight volumes increase 10.4 per cent in the final quarter of the year.
Third placed DB Schenker pointed out that it managed an increase in air freight demand, of 4.5 per cent year on year to 1.2 million tons.
"In 2016, volumes were driven by perishable goods, industrial intermediates, chemicals and consumer goods, with virtually all sectors recording stagnating or declining development," said DB Schenker.
The fastest grower in the list was Danish company DSV. It climbed seven places to become the ninth largest air freight forwarder, with volumes increasing by 84.7 per cent compared with 2015 to 574,644 tonnes.
The improvement was due to its acquisition of UTi, which finished 2015 as the 15th biggest air forwarder.
DSV said that the market was boosted by certain one-off events in the second half of 2016: disrupted supply chains following the financial collapse of Hanjin and a high activity level, especially in Asia.
The market was characterised by "periods with overcapacity and intense competition, but also peaks with lack of capacity". This resulted in highly volatile freight rates.
Revenue growth lagged behind air freight volume improvements as a result of the volatile market and also because of UTi's strength in air freight compared with sea freight.
Panalpina also saw air freight demand improve by a double-digit percentage as it registered a 10.2 per cent improvement to 921,400 tonnes.
An acquisition was also behind this company's improvement as its purchase of Kenya-based Airflo, which specialises in perishables, compensated for declines in its oil and gas business.
In the first quarter of 2017, air freight demand improved by eight per cent to 233,000 tonnes. If the forwarder were to continue to grow at this rate it would be on the verge of joining the one million tonne club with DHL, K+N and DB Schenker.
Another fast-growing forwarder was GEODIS in 2016, which registered a 10.4 per cent year-on-year improvement in air freight volumes to 330,000 tons.
Again, an acquisition helped fuel growth, as the company acquired forwarder OHL as it expanded its presence in the US.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
