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Hi-tech cargo powers K+N growth as DSV rebuilds volumes

Semiconductor and cloud infrastructure shipments helped drive almost 10% growth in Kuehne + Nagel's third-quarter airfreight volumes, contrasting with falling tonnage at rival DSV, as it pruned accounts and managed Schenker integration effects. K+N handled 619,000 tonnes in Q3, up 9.8% year on year, with growth accelerating from 2.8% in Q2. Air Logistics net turnover rose 38%, to CHF2.4bn ($2.9bn), while EBIT increased 84%, to CHF169m. Its results presentation identified semiconductors and cloud infrastructure as key growth drivers alongside general hard cargo, and highlighted export strength from South-east Asia, excluding China. Gross profit per 100kg was broadly stable, quarter on quarter, while unit costs edged lower. The division's conversion ratio increased to 32.4%, from 22.8% a year earlier. The benefits of hi-tech demand extended beyond airfreight; K+N reported rising demand from the sector in Road Logistics, while recent investment in hi-tech sector growth was also helping improve Contract Logistics earnings. The performance contrasts with DSV, which yesterday reported a 3% decline in both air and sea freight volumes. Growth in technology business in APAC and North America partly offset weaker European activity, reduced ecommerce volumes, and other pressures. DSV also attributed part of its airfreight decline to deliberate yield-management measures. CEO Jens Lund told analysts around two percentage points of the 3% reduction reflected the "sanitising" of accounts. The contrasting performances highlight the importance of maintaining commercial momentum during acquisitions. K+N is reporting volume and market share gains, while DSV is working to stabilise its underlying business as it integrates Schenker. Jefferies analysts described K+N's results as "another beat and raise", attributing the improvement to strong volume growth, yields, and cost control. Their assessment of DSV focused on stabilisation of the underlying business, allowing acquisition synergies to drive earnings growth. Investors nevertheless welcomed DSV's results, sending its shares up 15.1% yesterday to DKr1,381.50, from DKr1,200 the previous day - although they remained well below February's DKr1,900+. K+N's reaction was more muted: its shares were trading 0.7% higher, at CHF231.50, at 10.55am UK time today, following its results and upgraded outlook. Across K+N, Q3 net turnover rose 22% year on year, to CHF7.4bn, while EBIT increased 53%, to CHF435m, and earnings rose 53%, to CHF316m. The group raised its full-year recurring EBIT guidance to CHF1.5bn-1.6bn, from CHF1.35bn-1.55bn, lifting the midpoint by CHF100m. Sea Logistics volumes increased 4.5%, to 1.16m teu, supported by market share gains on ex-Asia and transatlantic routes. Divisional EBIT rose 55%, to CHF172m, with yields improving 5% quarter on quarter. Road Logistics net turnover increased 14%, while EBIT grew 40%, to CHF28m. Contract Logistics EBIT rose 7%, to CHF66m, although new customer projects required upfront investment and the addition of around 4,000 employees. The division had 37 new contracts in implementation. Alongside growth from customers' technology investment, K+N reaffirmed its expectation of an AI-related uplift of CHF100m-150m emerging from 2027. That remains separate from its broader cost reduction programme, which it said was ahead of schedule, and was expected to contribute more than CHF150m in gross savings this year. The presentation provided no further breakdown of the AI applications or measured productivity gains underpinning the target.

Airfreight in Africa booming, thanks to disrupted ocean shipping services

African airfreight is seeing something of a boom from the disruption in ocean freight across the Middle East, but forwarders remain sceptical as to whether it will provoke long-term structural benefits. Hennie Heymans, CEO of DHL Express's Sub-Saharan Africa operations, told The Loadstar the shift from ocean services had left airfreight the only viable alternative to keep goods moving. "When people run into trouble from a seafreight point of view, the alternative becomes airfreight, becomes express, and that is a notable trend across African airfreight's growth momentum at the moment," Mr Heymans told The Loadstar. For DHL Express, the timing has proved particularly useful, coinciding with the launch of its Heavy Weight Express service, allowing its customers to ship consignments of up to 3,000kg, with individual pieces of up to 1,000kg. Expanding beyond smaller parcels, the new service is designed for automotive, energy, engineering, machinery, and pharmaceuticals, Mr Heymans noting the significant cost implications delays place on these sectors. "The timing of the launch worked out quite well, which makes the conversation a lot easier, and a lot more comfortable for those customers seeking these sorts of services," explained Mr Heymans. However, he did not disclose how much additional volume DHL Express had gained as a result of shipping disruption, nor how much of the growth in airfreight was a result of transference from ocean freight over underlying growth patterns. Anecdotal evidence from forwarders active on the African west and south coasts indicates that the continent is experiencing an uptick in demand for capacity, with overall volumes growing, but none was able to tell The Loadstar how the present situation should be assessed. One forwarder said: "There's definite growth in demand for capacity in and out of certain countries around the continent - Nigeria, South Africa, and Ghana are big lanes for us - but if it is specific modes, we can only say that uptick in airfreight bookings is transference." Others believe there are long-term prospects on the airfreight side for the continent's major players, with forwarders noting that the chaos in the Middle East, issues with the US, and looming threats in Asia were leading all to reconsider their supply chain make-up.

Terminal operators and liners eye concession opportunity at Colombo Port

Global terminal operators, backed by container shipping groups, are keenly eyeing fresh concessions at Sri Lanka's Colombo port, according to industry sources. One opportunity up for grabs soon is a rebid for South Asia Gateway Terminals (SAGT), where 30-year concession rights end in 2029. SAGT's ownership has four partners: 42% held by John Keells Holdings; 33% by Maersk/APMT; 15% by Sri Lanka Ports Authority (SLPA); and 10% by Evergreen. According to sources in Colombo, Sri Lankan policymakers are not considering a further extension of the concession term but will seek new proposals. "There are clear signals that SLPA will go in for a fresh tendering attempt," one source told The Loadstar. SAGT, which has three berths with a total quay of 940 metres, and able to handle 2m teu annually, began operations in 1999. The terminal handled 1.8m teu in fiscal year 2025-26, which was down 11% year on year, as the Middle East crisis resulted in a wave of service suspensions, according to available data. Sources said most major liners were upbeat about staking a claim for SAGT, with indications that Maersk will partner with another European liner to jointly pursue the concession rights. The Danish group had previously explored collaborating with an Asian carrier, but the prospect of EU regulatory clearance risks was understood to have derailed that move, sources added. "A joint bid between two European liner behemoths could be a game-changer for Colombo's terminal operations," one Sri Lankan port veteran told The Loadstar. Sources believe Colombo's booming transhipment traffic offers investors a stronger growth proposition, so bidding for any upcoming projects at the port is expected to be heated. Despite the nagging capacity strain and growing competition from Indian ports, Colombo saw combined throughput in H1 26 spike 12% year on year, to 4.4m teu. Meanwhile, until new concessions emerge or become operational, Adani Group's $750m investment in Colombo West International Terminal (CWIT) is seen to be Colombo's primary growth engine. CWIT has officially launched phase 2 operations, doubling its capacity to 3.2m teu, after hitting 2m teu within 18 months of phase 1 operations, claimed to be the fastest growth seen by any operator at the port. "With additional capacity, CWIT would be able to simultaneously berth three ultra-large container vessels, strengthening Colombo's position as a critical transhipment hub on the east-west trade route," said Adani Ports (APSEZ). "Phase 2 is a landmark for APSEZ's international portfolio and sharpens our position across the Indian Ocean's key trade corridors. With expanded capacity, full automation and deepwater infrastructure, CWIT is built to be Colombo's premier transshipment gateway and contribute to export/import cargo in Sri Lanka." In recent years, Adani has markedly expanded its terminal networks beyond India, aiming to become the world's largest port operator handling 1bn tonnes of cargo across markets by 2030 - doubling the 500m tonnes in fiscal 2025-26.