Austria Freight Forwarding Services
Air & Road Freight Between Austria and the UK

DSV set to root out low-margin business as volumes decline in Q3

Air and sea freight volumes at the world's largest freight forwarder, DSV, saw a decline in the third quarter, but revenues grew more than 15% year on year, due to elevated ocean freight rates. According to third-quarter results released today, DSV posted group revenue of DKr71.9bn ($10.8bn), up 10.5% year on year, and an EBIT before special items of DKr5.4bn, up 19.5% year on year. Its Air & Sea forwarding division reported a 3% decline in air freight tonnage and ocean freight teu, but a 15.9% increase in combined revenue, to DKr45.6bn, while EBIT before special items was up 19.8% year on year, to just under DKr4.3bn. DSV also noted that over the first nine months of the year, its sea freight volumes had grown 13%, but attributed the Q3 decline to a mixture of "weaker commercial performance on the APAC-Europe tradelane and the effect of yield management initiatives. It said: "The quarterly decline was greater than expected, but stabilised during the period. "Performance was impacted by weak demand on Middle East-related tradelanes, where disruptions affected activity, while the APAC-Europe tradelane continued to be affected by integration-related commercial impacts in certain countries, particularly in Germany." Chief executive Jens Lund told analysts on DSV's earnings call this morning the firm had spent the quarter "sanitising" its lower-paying and loss-making shipper accounts. "I would say of the 3% decline, about two percentage points were sanitising and the remaining 1% a business decline, certainly in air freight," he said. Third-quarter air freight volumes also fell 3%, year on year, to 560,890 tonnes, although over the nine-month period they were up 15% year on year. The company explained: "Despite a positive volume trend during the quarter, the decline was larger than expected. "Volumes were impacted by yield-management initiatives, conversion from air freight to sea freight, lower-than expected activity in Europe and reduced e-commerce volumes on the APAC-Europe tradelane. "This was partially offset by growth within the technology business in APAC and North America. Middle East-related tradelanes remained weak, due to the ongoing conflict in the region." Mr Lund added that between 20% and 25% of volumes were now running through the Tango TMS inherited through DSV's acquisition of Schenker, the remainder being handled via the CargoWise system. "It's predominantly the larger clients that we have on that [Tango] platform - the more complex ones. "We've not started any roll-out yet - we've said that we want to improve Tango, and it will also co-exist with CargoWise for quite a while, so that we de-risk the roll-out." Meanwhile the Road Transport division was clearly the group's worst performer: revenue essentially flat, at DKr23.4bn; while EBIT before special items decreased 35.1% year on year, to DKr526m, on the back of falling volumes and "a period with operational issues". DSV said: "However, the operational performance normalised at the end of the quarter and focus is now shifting to improving productivity and commercial performance." It added: "While the Schenker integration continued during the quarter, the synergies are expected to be delayed into 2027." In contrast, its Contract Logistics arm saw revenue grow 7.3%, to DKr14.3bn, while EBIT before special items increased 50.3%, to DKr1.7bn, following "productivity and capacity improvements, including consolidation of low-margin sites". Mr Lund said: "Where you have activities in warehouses that basically operate at a very low margin, and sometimes even at a minus margin, all these things are not delivering the return we require - we are basically terminating this volume now. "That's part of the CL improvement - you take some business out that maybe loses money, or has very low margin, and you replace it with business that operates at a normal margin. And look at what an impact it has," he added.

Boeing's 777F now most widely operated freighter globally

Boeing's 777 freighter is now the most widely operated freighter in the world, according to data supplied by the US aircraft manufacturer. The 777F fleet has surpassed 330 airplanes in service and now carries more air cargo per year than any other type of freighter, said Boeing. Due to its high utilisation on long-haul routes, the 777F fleet provides around 40% of global freighter capacity, the company added. "The Boeing 777 Freighter fleet has overtaken the in-service fleet of 747 freighters of all types to become the most widely operated freighter in the world today," said Boeing. In 2025, the 777F undertook 6,250 flight hours, with an average of more than 17 flight hours per day. Additionally, 80% of freighter flights over 6,000 nmi were flown by 777Fs. Last year, the value of global trade carried by the 777F fleet was estimated to be around $4trn, according to the aircraft manufacturer. The longevity of the 777F was boosted in September when the FAA granted Boeing an emissions exemption for the aircraft model that will enable it to continue selling them beyond the end of 2027. The decision by the FAA means that Boeing, which filed its emissions exemption request in December and had requested that the exemption be approved by 1 May, can sell 35 more 777Fs that will be eligible for a Certificate of Airworthiness. The aircraft manufacturer's order and delivery data for 2026 shows that six 777Fs have been ordered this year. On the deliveries front, Boeing's data shows that 20 of the model have been delivered so far this year. There are also a total of 38 unfilled orders to date. There have now been firm orders for more than 450 777Fs and 777-8Fs combined.

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.