Kuehne+Nagel Group demonstrated profitable growth in the third quarter of 2020, following a first half year marked by the coronavirus pandemic. In the third quarter of 2020, container volume rose by 10.4 percent to 1.2 million TEUs compared to the second quarter.
Net turnover for the first nine months amounted to CHF 14.8 billion and EBIT to CHF 790 million. Currency fluctuations had a significant negative impact on both net turnover (-5.7 percent) and EBIT (-5.9 percent) for the first nine months.
Detlef Trefzger, CEO of Kuehne + Nagel International, said: “With our motivated team, we are ready for further growth together with our customers, especially in the pharma & healthcare and e-commerce sectors. Even though we expect considerable uncertainties in the coming months, we are well prepared.”
Improved market conditions in the third quarter of 2020, including the automotive sector and perishable goods, led to a greater than normal seasonal uplift in air Logistics volumes versus the second quarter. Crisis goods, on the other hand, increasingly shifted to alternative transport routes.
At 354,000 tonnes, air freight volume in the third quarter was 12.8 percent lower than in the same period of the previous year, while net turnover increased by 8.7 percent to CHF 1.2 billion and EBIT by 89.9 percent to CHF 169 million.
In September 2020, air logistics opened new pharma hubs in Brussels and Johannesburg with direct tarmac access. The even faster handling of goods and the guarantee of product integrity will provide customers with considerable added value, especially for temperature-sensitive vaccines.
In particular, demand for domestic transport capacities in European countries reached pre-crisis levels. In North America, demand for all product segments – with the exception of pharma & healthcare and e-commerce – remained significantly below the previous year’s level; however, an initial market revival has been evident since September.
The business unit’s net turnover decreased to CHF 796 million in the third quarter and EBIT was down to CHF 12 million. The continued very weak demand for expo and event logistics had a significant negative impact on the result.
Kuehne+Nagel is preparing together with its customers – for the future customs clearance (export and import) between the EU and the UK with a digital solution – Your Easy Brexit Solution.
Market share gains in pharma & healthcare services and in e-commerce fulfillment as well as stringent cost management led to a significant improvement in earnings in contract logistics in the third quarter of 2020 compared to the second quarter.
The business unit is continuing to expand its e-commerce fulfillment activities which are driving a significant proportion of new business wins. In Sweden, for example, Kuehne+Nagel will operate a new distribution center for Amazon.
Source: Logistics Update Africa