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UPS’ most recent numbers add to a sense of falling demand across not just air express, but other markets too. For the first quarter 2024, revenue fell 5.3% year-on-year to US$21.7bn whilst ‘adjusted’ operating profit was down 31.5% at $1.74bn.
The start of 2024 has proved to be somewhat unexciting for Kuehne and Nagel. The logistics service provider’s just published Q1 2024 results show that, in the face of some quite volatile markets, the company saw its performance suffer.
Daniel Křetínský has finally made his offer for Royal Mail. The Czech investor who has held 27.5% of International Distributions Services Plc (IDS) shares for several years, has made an offer for the holding company of the Royal Mail and GLS of UK£0.320 per share.
The situation in the Middle East has worsened. There are now threats both to sea and air freight transport across most of the region. It also appears that types of cargo beyond just container cargoes are threatened.
The logistics infrastructure of South East Asia continues to develop, even if its progress is politically controversial. For example, Port Klang, in Malaysia, is embarking on its plan to double container handling capacity from 14m TEUs at present, to 27m TEUs in 15 years time and increase the number of container terminals from 9 to 17.
The situation in the Red Sea may be deteriorating. A series of media reports are stating that the Houthis have launched missile attacks against several different ships in the Red Sea, off the coast of Yemen, and in the Indian Ocean.
There is some evidence that the Red Sea crisis is supporting air freight demand, although many locations beyond Europe and the Middle East are also seeing a stronger market.
Kerry Logistics, now owned by the Chinese express company S.F. Express, has just announced a dramatic fall-back in its sales and profits in 2023.
The crash of a Maersk operated container vessel into a bridge at the entrance to the port of Baltimore has attracted a lot of attention. However, its impact on supply chains in and out of the US is likely to be modest with the automotive sector suffering the worst problems.
It is not hard to understand why Deutsche Bahn wishes to sell Schenker. Deutsche Bahn’s debt increased by €5.2bn to €34bn over the Financial Year 2023, driven by capital investment in German railways.
The Port of Los Angeles is suddenly growing again, with year-on-year growth of container volumes up 60% in February. But not all ports are as buoyant.
The threat of US East Coast dock worker strikes is increasing as the deadline for contract re-negotiations approaches. Shippers are becoming nervous.
