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DHL forwarding sees airfreight rise but some volumes move to express

DHL reported increases in airfreight revenues, profits and volumes in the third quarter but saw some potential volumes move over to express. The company's forwarding division saw third-quarter airfreight revenues increase by 30.4% year on year to €1.5bn, while airfreight gross profits increased by 28.4% to €321m and airfreight volumes were up 12% on last year to 497,000 tonnes. The company said that volumes were up on demand out of Asia, while performance had also been boosted by higher airfreight rates. "The [forwarding] division helped customers adapt transport routes to changing trade flows and maintain reliable supply chains," the company said in a press release. Overall third-quarter forwarding revenues also improved, up by 23.4% to €5.6bn and operating profits stood at €259m, up 32.7%. The company said that overall growth also reflects the successful pass-through of cost and fuel inflation to customers. Overall market airfreight rates and volumes have been on the rise this year due to higher fuel costs, a surge in demand for the transport of data centre-related goods, overall market strength, the conflict in the Middle East and capacity tightness from certain markets. Express shift The express division reported a 19.2% increase in third-quarter revenues to €7bn, while ebit was up 50% to €1bn, in part because of constraints in airfreight. "DHL Express benefited from a continuing gradual rise in weight transported throughout the network. Capacity constraints in the airfreight market also had a positive effect on earnings of around €100m," DHL said. "The positive earnings performance from increased capacity utilisation was additionally supported by effective cost and yield measures." Time Definite International daily shipment weight was up 9.7% year on year as the express division targets heavier cargo. Earlier this year, Mike Parra, the chief executive of DHL Express for Europe, told Air Cargo News that the shift to heavier shipments has been partly driven by e-commerce platforms moving away from the integrators to lower-cost bulk transport and 'local hero' last-mile networks, resulting in the share of heavier shipments increasing. However, the current geopolitical unpredictability and war in Iran have helped accelerate the change as an increasing number of urgent heavier items find their way into the express network because of the speed, certainty and uncomplicated pricing model on offer. To capitalise on the trend and as part of its strategy to refocus on industrial customers, at the start of the year, DHL Express launched a Heavy Weight Express (HWX) service that can transport shipments of up to 1,000 kg per piece and 3,000 kg per shipment. Forwarding comparison Compared with its forwarding rivals, Kuehne+Nagel saw airfreight revenue rise by 38% year on year in the quarter while volumes were up 10%. DSV saw air forwarding revenues increase by 16.6% despite a drop in volumes of 3%. Earlier this year, DHL Group raised its operating profit outlook for the year thanks to the strong performance of its express division and expectations for a good peak season. The logistics and express giant now expects to post earnings before interest and tax (ebit) for the year of €7bn, compared with its previous forecast of €6.5bn.

Major liners set to resume all Asia-Europe services through Suez

All the mainline operators look set to resume Suez Canal transits for their Asia-North Europe and Asia-Mediterranean services. Taiwan's Evergreen will join its Ocean Alliance partners in doing just that this week, while Yang Ming and South Korea's HMM will join their Premier Alliance partners restarting Suez crossings next month. Linerlytica's report today says Evergreen will send the 16,556 teu Ever Eon and Ever Edit on eastbound Suez transits on the Ocean Alliance's NEU7/CES service on 7 and 11 November, respectively, with the 20,124 teu Ever Gifted on the alliance's MD2 service on 16 November. The Premier Alliance's Asia Mediterranean 1 (MD1) service will resume Suez transits next month, adding a new call at Sokhna to cater for Asia-Red Sea cargo. The revised MD1 rotation will call at Ningbo, Shanghai, Shekou, Singapore, Sokhna, (Suez Canal), Damietta, Ambarli, Izmit, Mersin, Damietta, (via Suez), Singapore, Kaohsiung, and Ningbo, starting with Yang Ming's 11,714 teu YM Trust at Ningbo on 13 November. The revised MD1 will turn in 84 days and will deploy 12 ships of 11,700 to 14,000 teu from Yang Ming, compared with 16 ships on the present Cape route. Shipping lines turned away from Suez and diverted vessels round the Cape of Good Hope in late 2023, after the Houthis began attacking vessels in response to Israel's conflict with Palestine. In recent months, vessel capacity constraints, and competitive pressures following a temporary easing of regional security risks, have convinced shipping lines to resume Suez crossings. Israeli carrier Zim is the only major shipping line sticking to the Cape route, possibly due to its nationality. HMM's spokesperson told The Loadstar South Korea's flagship carrier had assessed the risks before deciding to resume Suez transits. She said: "This matter was decided and agreed upon from a Premier Alliance perspective, following a comprehensive review of market conditions and safety aspects." Linerlytica said: "All three main carrier alliances, along with MSC, are set to make a full return to the Suez by Q1 27, leaving Zim as the only main carrier left on the Cape route." The Gemini Cooperation partners, Maersk and Hapah-Lloyd, have also signalled a full Suez resumption by Q1 27, and launched a new Asia-Mediterranean service that passes through the canal. The shortened sailing times do not augur well for Asia-Europe and Asia-Mediterranean rates, however, with the 1 November price hikes failing to gain traction, and further rate declines are expected in the coming weeks, as supply growth is not outpacing growth in demand. With this, shipping lines are also adding more Red Sea calls to capitalise on rising Shanghai-Persian Gulf rates. Evergreen is relaunching its China-Red Sea service on 12 November to coincide with the resumption of its Suez transits. The OGRD service will call at Qingdao, Shanghai, Ningbo, Shekou, Singapore, Jeddah, Sokhna, Aqaba, Jeddah, Port Klang, and Qingdao. The service will turn in 56 days but will initially only deploy four 7,000-9,000 teu ships, operating on a fortnightly basis starting with the 7,024 teu Ever Superb at Qingdao. MSC has extended its Far East-Indian subcontinent Shikra service to Khor Fakkan in the UAE and Oman's Sohar port, as it capitalises on the high demand and freight rates to the Middle East, despite severe congestion at these ports. The first Khor Fakkan call was made on 18 October, by the 24,346 teu MSC Micol under the new Shikra rotation that calls at Dalian, Xingang, Qingdao, Shanghai, Ningbo, Nansha, Singapore, Nhava Sheva, Mundra, Khor Fakkan, Sohar, and Dalian. The extended service will turn in 15 weeks, using up to 15 14,000-24,000 teu ships. The largest of them will call at the western Indian ports as well as Khor Fakkan and Sohar. These ships will face severe delays, especially at Khor Fakkan, with waiting times of more than two weeks to berth.

Lady Luck and the lifer: Dan Wall's Expeditors is on a tear

Stock value at record $206.23 intraday post-interims. Quarterly revenue up 42%, operating profit up 55%. A freight market delivering disruption, scarcity, and an AI infrastructure boom. Expeditors' new chief executive has produced extraordinary results - however, the real test may be what happens when the market stops helping. There's no polite way to say this, so let's just say it: Dan Wall (pictured below) picked a hell of a time to become chief executive of Expeditors International.