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

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Article Topics

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

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA