Global logistics provider, Dachser has released its 2019 business figures which show the company’s consolidated net revenue grow by a solid 1.6 per cent to EUR 5.66 billion. Driving this growth was the Surface Logistics business with net revenue increase of 2.9 per cent to EUR 4.60 billion. In contrast, the Air & Sea Logistics business saw a downfall of 4.1 percent in revenues, mainly attributed to weaker demand for air freight services for automotive customers.
The revenue growth at the Group level contrasts with declining shipment and tonnage figures. Although the number of shipments was down by around 3.7 per cent from 83.7 to 80.6 million, tonnage fell only slightly compared to the previous year, slipping by 1.0 per cent from 41.4 to 41.0 million metric tonnes.
CEO of DACHSER Bernhard Simon said, “When the economic wind turns, quality and reliability count more than ever. That’s why we’re all the more committed to ensuring our employees are well-qualified and motivated and why we’re continuously investing in our network, our processes, and our IT.”
DACHSER’s Surface Logistics business field—which comprises the transport and storage of industrial goods (European Logistics) and food (Food Logistics)—continued to provide stability while driving growth at the company. In 2019, road logistics increased its consolidated net revenue by 2.9 per cent from EUR 4.47 to 4.60 billion. The business line European logistics contributed 3.63 billion Euro (+2.4 per cent) to the Surface Logistics revenue. “Cross-border services remained strong and contract logistics saw positive development throughout Europe. Although the situation on the freight market relaxed in the course of 2019, the shortage of drivers and lack of qualified personnel in Germany and many other European countries continues to be our most pressing challenge,” Simon explained.
DACHSER’s Food Logistics business line achieved the strongest growth in 2019, recording revenue growth of 5.1 per cent from EUR 917 to 964 million. The number of shipments handled declined by 1.7 percent and tonnage saw a slight rise of 0.6 per cent. “Food Logistics has been a reliable pillar of our business model for years,” Simon said, adding that the company’s alliances with its partners in the European Food Network have proven to be extremely stable and fruitful.
In the Air & Sea Logistics business field, revenue declined by 4.1 per cent in 2019, from EUR 1.19 to 1.14 billion; the number of shipments was down by 5.6 percent. “In Air and Sea Logistics, we’re feeling the effects of the business climate, which is very volatile and greatly impacted by the disruptions to world trade,” Simon said. In the company’s air freight business, according to Simon, the effects of the weak demand for transport services from the German automotive industry are particularly evident.
Due to the coronavirus outbreak, Dachser, like many other companies, will have to readjust its targets.
Simon explained, “The final impact on our business is difficult to predict; all we can do is reassess the situation daily and respond accordingly, taking an agile and flexible approach. In view of the current restrictions on business activities, we can’t avoid a downturn in volume in our industrial goods business, especially in Spain and France. However, in terms of our service portfolio and customer structure, we deliberately adopt a very broad position so that we can adapt well to new scenarios. As a logistics provider, we are a key link in the basic supply chain for the food sector, and we expect this business to remain relatively stable.”