Subscribe to our free, weekly email newsletter!


Damco remains in expansion mode

The global logistics company reported improved operations and year-on-year results in both 2009 and 2010.
By Patrick Burnson, Executive Editor
August 22, 2011

Damco joins several other leading freight forwarders in positive numbers this year.

Damco continues to improve its financial performance, spokesmen said. The global logistics company reported improved operations and year-on-year results in both 2009 and 2010. Furthermore, the company expects “good progress” moving into the second half of 2011 despite increasingly challenging conditions in the global freight markets.

This is consistent with obervations made by industry analysts recently. John Manners-Bell, chief executive with the London-based consultancy, Transport Intelligence (Ti), said forwarders are enjoying somewhat of a golden period,.

“Air and sea volumes are still growing albeit not as rapidly as last year,” he said. “In addition to this, extra capacity brought on by shipping and air carriers has meant that rates have softened, meaning that forwarders’ gross margins will expand. Our research suggests that this should be by around 2 percentage points.”

In the first half of 2011, Damco’s ocean freight volumes increased 11 percent compared with the same period in 2010 - well above the 6-8 percent market average. Supply chain management volumes were 2 percent lower than in the same period in 2010 due to the absence of last year’s restocking and weakening consumer demand in North America and Europe. In the air freight segment volumes also grew 11 percent, substantially ahead of the 2-4 percent market average.

Compared to the same period last year gross profit is up 9 percent to USD 361 million. Damco EBIT before restructuring costs for 1H 2011 grew 14 percent to USD 37 million, backed by increased volumes and improved unit margins.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

When it comes to Congress actually getting its act together on a new long-term federal transportation bill, things remain as status quo as it gets, with the big takeaway being nothing really ever gets done, when it comes to passing a badly overdue and needed bill, rather than these band-aid extensions Congress keeps signing off on.

Truckload and intermodal pricing was up on an annual basis, according to the December edition of the Truckload and Intermodal Cost Indexes from Cass Information Systems and Avondale Partners.

While the official numbers won’t be issued until early February in its quarterly Market Trends & Statistics report, preliminary data for the fourth quarter and full-year 2014 intermodal output from the Intermodal Association of North America (IANA) indicates that annual growth was intact.

Almost all companies today are aware of their labor or material costs... but what about energy consumption? It all comes down to having the energy data needed to determine what actions you must take to improve. The payoff is worth it, as insight into energy data allows you to make more valuable, relevant operating decisions.

With lower energy prices sparking domestic economic gains, coupled with solid manufacturing and industrial production activity, improving jobs numbers, and a GDP number that shows progress, there is, or there should be, much to be enthused about when it comes to the economy and the economic recovery, which has been raised and discussed and dissected from basically every angle possible, it seems. But that enthusiasm regarding the economy needs to be tempered, because big headline themes seldom tell the full story at all really.

Article Topics

News · 3PL · Global Logistics · Global Trade · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA