Supply Chain Management Volumes Grow for Damco

By Patrick Burnson, Executive Editor
August 20, 2013 - SCMR Editorial

As it remains poised to extend its reach into emerging markets, global freight forwarder and logistics services provider Damco reports total revenues of $1,531 million for the first half of 2013 and a post tax operating loss of $2 million (Net Operating Profit After Tax).

Underlying EBITA before special items in the first half of 2013 was $24 million, compared to $34 million in the same period last year. This was slightly less than anticipated, caused by higher-than-planned costs to strengthen and prepare the organization for the future in a number of the growth markets.

Year-on-year growth remains healthy with air freight volumes significantly up (+14%), outperforming the market. Supply chain management volumes grew a very solid 10% while sea freight volumes contracted slightly (-1%).

“In weak markets we continue to invest in building the future with special focus on expanding our geographical coverage and rolling out our new global freight management system” said CEO Rolf Habben-Jansen.

“This is needed to enable future growth and to optimize our cost to serve. We will start seeing the benefits from this later this year and expect to see solid year-on-year improvements in the results from Q4 2013 onwards” he added.

Spokesmen said that in the upcoming quarters Damco does not anticipate a major improvement in the market situation.

Evan Armstrong, president of Armstrong & Associates, ranks the company among the “Top 25” freight forwarders, noting that In 2011, the company had a net turnover of $2.8 billion, managed more than 2.5 million twenty-foot equivalent units (TEUs) in ocean freight and supply chain management volumes, and air freighted more than 110,000 metric tons.



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

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

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