Damco remains in expansion mode

Damco continues to improve its financial performance, spokesmen said

By ·

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

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 [email protected]

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!

Article Topics

3PL · Global Logistics · Global Trade · All Topics
Latest Whitepaper
Efficiency improvements in Track/Trace Enhances Customer Loyalty
Consumer satisfaction with the quality of your products is clearly important, but the service you provide before and after the sale is equally important to any business, but often overlooked as benefiting the bottom line.
Download Today!
From the October 2016 Issue
Over the past decade we’ve seen a major trend in regards to safety regulations for freight transport within the United States as well as for import and export shippers—that trend is the “international­ization” of rules and regulations.
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction?
Badcock Home Furniture &more: Out with paper, in with Cloud TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
How API Technology Connects the Transportation Economy
Dynamic decision making is made possible through accurate, actionable data. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.
Register Today!
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...

2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...