DHL sees strong Q3, prepares for ‘rougher circumstances’

DHL's parent company, Deutsche Post DHL Group (DPDHL), reported strong Q3 earnings, with overall revenue up 20% year over year to 20 billion euros ($9.8 billion) and EBIT up 13.4% YoY to $2 billion. The company noted revenue gains across most of its divisions, according to today’s earnings report: Express revenue increased 21.8% YoY to $7.2 billion; Global Forwarding & Freight revenue jumped 38.2% YoY to $7.9 billion; Supply Chain revenue was up 14.5% YoY to $4.2 billion; E-Commerce Solutions revenue increased 8.2% YoY to $1.5 billion; and Post & Parcel Germany revenue slipped 0.2% YoY to $3.9 billion. Like UPS, DPDHL Group benefited from revenue management and fuel surcharges across its divisions. Excluding currency effects and fuel surcharges, Express's revenue increased 4.3% YoY. Revenue management also benefited Express' revenue per day, which increased 18.5% YoY in its Time Definite International (TDI) product to $8.6 million per day, and was up 3.6% YoY in its Time Definite Domestic (TDD) product to $5.75 million per day. However, Express' daily volumes declined YoY, with TDI down 2.6% and TDD down 10.8%. Facility investments [caption id="attachment_68221" align="alignright" width="362"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] Despite declines in overall volumes per day, DHL Express broke ground for an expanded facility at Munich Airport (MUC) during the quarter in response to growing DHL Express shipment volumes at the Munich gateway. In addition, DHL Express relocated its facility in Indianapolis to a space that is nearly double the size of the previous location. The $7.7 million investment in the DHL Express service center increases shipment capacity and enables faster shipment processing, resulting in faster deliveries for local customers, according to DHL. In a similar move, DHL relocated its facility in San Diego closer to the San Diego Airport (SAN) to a space more than double the size of the previous location. Mixed freight volumes DHL's Global Forwarding & Freight continued to ride the wave of higher freight market rates, although volumes were mixed during Q3. Airfreight volumes declined 10.9%, led by trade routes between China and the U.S., which were attributed to lower demand amid a shift to ocean freight. Ocean freight volumes were up 11.9% while the capacity situation in the ocean freight market eased, according to the group. DHL Global Forwarding & Freight noted that normalization had begun despite higher freight rates. The Supply Chain division noted revenue growth in all regions. Within its verticals, Consumer and Automobility recorded the most significant growth. Meanwhile, the E-Commerce group noted a normalization during Q3 compared with the year's first half. Parcel volume increased 2% while price increases supported revenue. The group expects the Q4 peak season to be similar to 2021’s peak. "We expect and prepare for a seasonal uplift, aware that the peak season could turn out less steep than in previous years,” DPDHL Group noted in today’s statement. “Just as well, we are expecting further normalization in freight markets and generally getting prepared to weather rougher circumstances when and where needed." Overall, DPDHL Group raised its outlook. "Based on the continued strong performance recorded in Q3, we have not seen … a sudden, sharp deceleration materializing,” the company stated. “On that basis, we expect 2022 EBIT to turn out stronger than the lower half of our old guidance."

DHL sees strong Q3, prepares for ‘rougher circumstances’

EFW to open second A330P2F conversion line in China

Expeditors’ airfreight revenue slides 9% in Q3

Related Posts

FedEx tops estimates while warning of trade policy pressure

FedEx’s Richard Smith to participate in main fireside chat at Cargo Facts Symposium 2026

UPS boosts Mexico automotive network

Expeditors’ airfreight revenue slides 9% in Q3

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password