DSV sees reduced COVID impact in Q3

Danish freight forwarder DSV Panalpina reported that the negative logistics impact from COVID-19 was reduced during the third quarter across most of its business sectors and that its airfreight tonnage was up 4%. [caption id="attachment_89849" align="alignright" width="450"] DSV teamed with Cargolux on the legacy Luxembourg to Huntsville route. Photo courtesy of DSV.[/caption] Most of the sectors in which DSV operates have stabilized during the quarter except for airfreight, where DSV estimates market activity was 15% to 20% below levels from 2019 due to ongoing capacity constraints. Throughout the pandemi c DSV has ramped up its charter offerings, originally begun by Panalpina, to support capacity on certain high-demand routes. See also: DSV further expands air charter network While other logistics modes have leveled out, DSV forecasted that the airfreight market will likely remain constrained for the foreseeable future, which should support high yields for the mode and benefit DSV via its charter offerings . The forwarder noted demand is strongest for exports from Asia and increasing on other trade lanes, and that eventual need for distribution of a COVID-19 vaccine will apply further pressure to the market. DSV’s airfreight volumes in tonnes were up slightly, by 4% in the third quarter, and up by a significant 51% through the first three quarters of 2020, but DSV attributed most growth to the acquisition of Panalpina and gradual integration of Panalpina volumes into DSV’s system. Year-to-date, DSV’s air and sea sector reported sharply higher revenue and gross profit, up 66.9% and 56.4%, respectively, due to record yields during the second quarter. Across its business, DSV reported a 13.5% year-over-year improvement in gross profits to 7.3 billion Danish krone ( $1.1 billion) during the third quarter. In its statement on the performance, DSV noted that market activity for ocean freight, road and contract logistics largely recovered during the quarter and were down only slightly compared with year-ago levels. A t the same time, higher profits per shipment or activity across modes compensated for volume declines. The forwarder also gave updated guidance on its integration of Panalpina into DSV, stating that integration is ahead of schedule and nearly complete .

DSV sees reduced COVID impact in Q3

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