Logistics Bulletin

Monday 19 August 2019

This week’s Logistics Bulletin reports on a quarter of solid progress in Q2, for Maersk, driven by continued recovery in Ocean, though growth in revenue and gross profit in Logistics & Services still needs to improve, as the Company continue to build capabilities within logistics and services.

On the back of the increases in volume and freight rates, Ocean EBITDA in Q2 increased 25.0% and revenue grew 2.9%. Volumes increased by 1.4%, mainly driven by Intraregional trades increasing 5.4% and East-West volume growth of 0.5%, while North-South was on par with Q2, 2018. The intra-Asia trades saw a growth rate of 14.0%, which drove Intra-regional volume growth of 5.4%, as both intra-Americas and intra-Europe trades delivered volumes on par with Q2, 2018. The East-West volume increase was driven by Europe, impacted by higher demand for refrigerated goods in China.

In Logistics & Services, supply chain management revenue increased 8.2%, as Intermodal revenue decreased slightly. Sea freight forwarding revenue decreased 11.5% with a volume decrease of 6.6%, whilst air freight forwarding revenue decreased 19.0%, with volumes decreasing by 9.2%.

Maersk reported that global container trade grew by around 2.0% in Q2, 2019 compared to Q2, 2018, in line with the Company’s expected full year 2019 growth of 1.0%-3.0%. The soft momentum continued from Q1, reflecting a broad-based slowdown in all the main economies. Negative effects from escalating trade restrictions also weighed on trade growth.

Corporate and market news...

• Maersk reports strong improvements in earnings in Q2
• Agility sees Q2 air freight volumes fall 8% as ocean freight TEUs decrease 2%
• ZTO reports 29.2% growth in Q2 revenues
• Container handling increased 7.5% in H1 at Port of Hamburg
• Japan Post reports 1.7% growth in quarterly International Logistics revenues
• Turners enters general haulage sector with deal for Jack Richards
• Menzies Aviation acquires GTO Global Logistics
• Arrow Transport and Logistics acquires Sydney Sideloaders
• PSA Thailand and SCG Logistics launch joint venture company in Thailand
• AIT Worldwide Logistics expands operations in Mexico
• Suttons working with Border Force in fight against smuggling

Service developments... 

• Panalpina’s healthcare logistics centre in Germany obtains GDP certification
• time:matters extends Sameday Air network in Asia
• Panalpina establishes operations in Oman
• TIANJIN launches Chinese-Russian cross-border trucking solution
• UPS customers to benefit from no residential peak surcharges during holiday season

Outsourcing news...

• Arco extends logistics contract with XPO Logistics
• Fresh Logistics supports product launch for Lucozade Ribena Suntory

Warehouse and distribution centre developments...

• Nike to open US logistics centre
• Dachser set for expansion in northern Germany
• Schneider to open Dallas operating centre in January 2020
• PUMA opens UK logistics centre
• UPS opens high-speed sortation facility in Delaware
• DB Schenker becomes Foundation Partner of Smart City project Aerotropolis
• HARTING opens European Distribution Centre

IT, fleet and environmental developments...

• DB Schenker considers roll-out of exoskeletons
• Bibby Distribution drivers help reduce cut net carbon emissions by 10%
• LLamasoft establishes strategic partnership with JD Logistics
• GreyOrange establishes partnerships to drive growth of AI and machine learning
• Gebruder Weiss provides space for secure parking areas
• Volkswagen launches first car boot delivery service in Spain with NACEX
• UPS invests in autonomous trucking company

Personnel and HR developments...

• Transplace appoints Managing Director for Canada
• GEODIS appoints Industrial Projects Director in Germany
• C.H. Robinson appoints Chief Financial Officer
• UPS appoints Chief Financial Officer

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