DHL reclaims stability with spectacular EBIT growth
At first glance the 3rd quarter figures from Deutsche Post-DHL look spectacular.
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Thomas is a widely respected writer and has been analyzing the global logistics market for over 15 years. He has edited a number of international publications and written for most of the leading trade publications in Europe. He has written several in-depth reports on a variety of subjects including Automotive and Chemical logistics. Thomas has been vital in adding value to Ti’s Logistics Briefing service for the last 10 years and works on many global consultancy projects.
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At first glance the 3rd quarter figures from Deutsche Post-DHL look spectacular.
Although many in the West have little understanding of what ‘Singles Day’ is, its emergence is an important part of the changing structure of global trade.
The infrastructure and services for rail freight between China and Europe continue to develop as demand grows and the route increasingly is perceived as a viable option for large freight volumes.
The intended merger announced last week of Peugeot SA (PSA/PSA Groupe) and Fiat Chrysler Automotive (FCA) is another development in the rationalisation of the internal combustion engine vehicle sector.
Three large logistics service providers that reported their quarterly results over the past week said that they were experiencing tough markets, although their reaction to such markets differed.
There has been yet another enormous deal in logistics property this week.
UPS’ results perked up considerably over the past quarter, reflecting the continuing demand for internet retailing-driven services.
That regular problem facing the transport infrastructure of Western Europe has reappeared; the French rail strike.
The US and China appear to be inching towards some sort of agreement over trade.
Infrastructure, particularly logistics infrastructure, has become highly politicised. China’s ‘Belt and Road’ initiative has made the building of ports, roads and railways an issue of strategic competition between major powers.
The retirement of Kurt Larsen, DSV’s Chairman and one of the two men behind the company’s growth over the past thirty years, does not seem to have tempted the company to reconsider its approach.
The emergence of digital technology has begun to change the fundamentals of the logistics sector. As one of the largest logistics service providers Deutsche Post-DHL (DP-DHL) is wrestling with this change and has unveiled its strategy to deal with its implications.