Healthcare and semiconductor shipments, Asia exports and Red Sea disruption helped drive up airfreight volumes for Kuehne+Nagel (K+N) in the second quarter of 2024.
Airfreight volumes at K+N increased 7.3% to 517,000 tonnes in the second quarter of 2024 compared to the same quarter in 2023.
Net turnover in K+N's air logistics division in the fourth quarter was CHF1.8bn, up 9% year on year.
However, despite the increase in volumes and generally robust rates in the market during the quarter, profit for the division was down slightly.
And while overall figures show rising rates in the second quarter of the year, figures were dragged up by markets out China, in particular for e-commerce volumes, and rates in other markets declined.
There can also be a lag between airlines increasing prices and forwarders being able to pass these through to customers, which has an impact on profit levels.
Gross profit was down 4% and earnings before interest and taxes (EBIT) was down 17%.
In total, the division handled more than 1m tonnes of airfreight in the first six months of 2024 or 5% more year on year.
In its half year analyst conference document, the freight forwarder said the air logistics division had maintained market share in the hard cargo segment (ex e-commerce), while Asia exports had driven year on year and seasonal sequential growth.
"Volume growth developed in line with the addressable market and focused on profitable segments such as Healthcare and Semicon," said K+N.
The forwarder added: "Demand for combined Sea-Air Logistics services recorded strong growth in the first half of 2024 as some customers sought to shorten transit times due to the situation in the Red Sea."
Meanwhile, the K+N Group’s second quarter net turnover was CHF6bn, up 1% over the second quarter of 2023. Gross profit was down 3% and EBIT was down 23%.
There were non-recurring restructuring costs of CHF17m in the second quarter.
The company further noted in its analyst conference document for the second quarter and first half of the year that: "Profits still lower than prior year but sequentially higher."
Overall, the figures are above the pre-pandemic level, noted K+N.
Speaking about the first half of the year, Stefan Paul, chief executive of K+N said: “In the first half of 2024, we continued to focus consistently on the initiatives of our strategic Roadmap 2026. The recovery in demand for air freight had a positive impact while the renewed disruptions in the Red Sea created additional complexity in supply chains worldwide. We are well positioned for anticipated higher demand in the second half of the year and we expect to realise further efficiency gains.”
K+N maintained its position as the world’s leading airfreight forwarder in 2023.
https://www.aircargonews.net/business/kn-sees-airfreight-turnover-and-profits-fall-in-first-quarter/
