Strong volumes boost Swiss operator’s earnings

Kuehne + Nagel gained market share in all its business units in the first half of the year, recording net earnings of US$267 million, up almost nine percent.

“The entire logistics industry has capitalised on the economic recovery, resulting in rising transport volumes and increased warehouse utilisation,” said Reinhard Lange, CEO of Kuehne + Nagel International.

The Swiss logistics giant recorded particularly strong results in the air and ocean freight sectors.

With sea freight volume growth of approximately 20 percent in the first six months of 2010, Kuehne + Nagel gained market share in all trade lanes, performing well in the export business to South and North America.

The international air freight market experienced surprisingly high growth rates in the first half of 2010. Across all regions and industries shippers turned to this more cost-intensive transport mode to handle orders as fast as possible, the company said in its interim results announcement.

An air freight growth rate of 31 percent marked a record high. Volumes grew in all trade lanes, especially on the routes to and from Asia-Pacific.

“In the first half of 2010 the Kuehne + Nagel Group achieved its ambitious goal of gaining market share in all business units while demonstrating strong profitability,” said executive vice-chairman Karl Gernandt.

“As a result of the previous year’s investments in sales and product development, Kuehne + Nagel over-proportionally benefited from the improvement in global trade. Due to this convincing start, we are optimistic about the further development of our business.

“However, continued credit risks in some southern European countries and the situation in international finance markets still require great vigilance,” he said.
(Source:www.cargonewsasia.com)