Kuehne+Nagel Q2 airfreight revenues up 43% YoY

Switzerland-based forwarder Kuehne+Nagel’s gross-profit airfreight revenues for Q2 were up 43% year over year to CHF 796 million (US $825.5 million), handling roughly 1.1 million tonnes of cargo in the first half of the year. The forwarder’s gross-profit revenues for air shipments were up 68% YoY to $1.67 million for H1 2022 . Kuehne+Nagel’s other sectors, including sea and road logistics, also saw continued improvement in Q2, with total gross-profit revenues up 36% YoY to $6.12 million, according to today’s earnings report. Net turnover reached $21.4 million, up 55% YoY. [caption id="attachment_57131464" align="alignright" width="467"] Source: Kuehne+Nagel Q2 2022 earnings presentation[/caption] The forwarder’s air segment continued to feel the affects of the closure of Russian airspace and COVID-19-related lockdown restrictions in Shanghai during Q2 , which led to rescheduling and route diversions, according to the company’s earnings supplement. In turn, operational workload was high in the first half of 2022. “We were clearly hit by the Shanghai lockdowns in [Q2] 2022, and only in June we faced a volume reduction in the market and in our networks of minus-19%,” Chief Executive Detlef Trefzger said during today’s earnings call. "This is recovering now, and we see a strong trend toward growing volumes again.” Trefzger further noted that pharma and aerospace volumes are up with double-digit growth. Currently 65% of capacity is coming from freighters, or main-deck operations using the forwarder’s own chartered freighter network, and 35% belly capacity, he added. Upcoming peak season demand Like other forwarders, Kuehne+Nagel expects an upcoming peak season , however, the extent of the peak season is “to be seen,” Trefzger noted. In terms of capacity, he doesn’t anticipate a major change in the next couple of months. “Now is the peak season for passenger planes , even intercontinental, as the summer vacations are kicking in almost everywhere, globally,” he said. “But for the winter season, the belly capacity will be reduced … and still, some of the major markets are not offering a free entry into the country, like China, which also limits the number of belly capacity in one of our strongest or most important markets.” While larger retailers have become more cautious about replenishing their inventory due to supply chain disruptions, small- and medium-sized accounts have started to build up their inventory, Trefzger said. In turn, Kuehne+Nagel anticipates a “positive outlook with small- and medium-sized enterprises. "We also see that inventory levels are a security belt for the retailers to be able to provide services and goods to the customer base in autumn and winter, especially as brand owners are gaining market share,” he said. “So it will be also a shift in the balance of power, especially in the e-commerce market.” Expansions abound Kuehne+Nagel also continued to see positive contributions from its acquisitions, including Apex Logistics , which had an EBIT contribution of roughly $180 million. The forwarder has continued to strengthen its charter network in recent months to provide additional capacity. For instance, in June Kuehne+Nagel launched a weekly charter connecting Hong Kong (HKG), Budapest (BUD) and Liege (LGG) using a 747-400F. The forwarder also launched additional health care charter services — dubbed “MedConnex ” — this month from Brussels Airport (BRU) and LGG to the Americas, Asia and Africa. Kuehne+Nagel ranked No. 1 in Air Cargo World ’s recent Power 25 ranking of the world’s top freight forwarders, based on 2021 tonnage.

Kuehne+Nagel Q2 airfreight revenues up 43% YoY

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