DB Schenker was the star performer for loss-making Deutsche Bahn in the first half of the year despite operating profits and revenues coming under pressure.
The German forwarder registered a 6.6% year on year decline in first-half revenues to €9.4bn, while adjusted earnings before interest and tax declined 16.9% to €520m and airfreight volumes increased by 1% to 576,100 tonnes.
The air volume increase lags behind that of rivals Kuehne+Nagel and DSV, which reported increases of 7.3% and 10% in the second quarter respectively.
The forwarder said that the airfreight market was led by e-commerce demand growth, which it has a low share of the market.
However, the company said its volume growth was in line with the traditional air cargo market.
"In the first half of 2024, the airfreight market can be divided into two different segments: the market including the new e-commerce business from China and the traditional air freight market," Deutsche Bahn explained.
"While the traditional market was only slightly in the growth area in the first quarter of 2024, the market grew by almost double digits when the e-commerce segment was taken into account.
"In conjunction with the extreme regional differences in demand triggered by the e-commerce boom, with the associated imbalances in available capacities, we are seeing freight rates rising globally, albeit with very different characteristics and directions from region to region."
Meanwhile, the company said its EBIT decline partly reflected that freight rates away from the rapidly increasing e-commerce market out of China were on the decline.
"In airfreight, freight rates were constant or declining outside Asia/Pacific, where DB Schenker's share is low," the company explained.
"Expenses fell, particularly in the air freight area, mainly due to freight rate developments, but less sharply than revenue."
Deutsche Bahn also provided a small update on its planned sale of DB Schenker: "The process for a possible sale of up to 100% of the shares in DB Schenker continued as planned in the first half of 2024.
"The outcome is still open. According to the resolution of the Supervisory Board, proceeds from a possible sale of DB Schenker should remain entirely in the DB Group and lead to a significant reduction in the DB Group's debt. A sale will only take place if it is economically advantageous for the DB Group."
Recent reports suggest that Bahri has now dropped out of the running for the forwarder, leaving just DSV and a private equity consortium led by CVC.
The overall Deutsche Bahn Group reported a first half ebit loss of €677m, which it blamed on strikes, severe weather and the need to make infrastructure investments.
https://www.aircargonews.net/business/acquisitions/maersk-withdraws-bid-for-db-schenker/
