Rough market sees DHL revenue down 19.3% YoY

As airfreight continues to struggle through post-pandemic normalization, DHL Group today reported $20.8 billion in revenue, down 19.3% year over year. THE BIG PICTURE: The major players in the express , freight forwarding and general air cargo markets saw decreased cargo revenues in Q3. This decline has been mainly attributed to high capacity and low demand. BY THE NUMBERS: DHL’s divisions reported for the third quarter: Express revenue of $6.3 billion, down 18.2% YoY; Global Forwarding, Freight revenue of $4.7 billion, down 44% YoY; Supply Chain revenue of $4.6 billion, up 1.8% YoY; eCommerce revenue of $1.6 billion, down 0.8% YoY; and Post & Parcel Germany revenue of $4.2 billion, up 0.3% YoY. Revenue in the Global Forwarding, Freight division decreased, as the group had expected, due to lower volumes in both air a nd ocean freight and normalizing freight rates, according to the company’s earnings statement. [caption id="attachment_57139102" align="alignnone" width="1024"] (Photo/DHL)[/caption] Revenue growth in the Supply Chain division was supported by new business, contract extensions and growing e-commerce business, according to the company. WHAT THEY’RE SAYING: DHL’s Q3 bottom line was heavily affected by low freight volumes and rates, as well as high fuel prices , according to the company. “Global trade has continued to normalize after the pandemic-related boom and the recovery of the global economy has so far failed to materialize, also against the backdrop of higher interest rates and geopolitical crises,” DHL Group Chief Executive Tobias Meyer said in the earnings statement. FLASHBACK: DHL ranked second on Air Cargo Next ’s Power 25 list of the top 25 airfreight forwarders, based on 2022 tonnage figures. DHL Air ranked at No. 49 on Air Cargo Next ’s Freight 50 list of the top 50 cargo airlines, based on 2022 tonnage figures. NOTEWORTHY: The group has been expanding its global network to support omnishoring strategies, according to the earnings statement. “Strategic investments include, for example, programs of the DHL Supply Chain division in Latin America and Southeast Asia,” the report stated. “By 2028, the company will have committed [$535.3 million in] Latin America and [$374.7 million in] Southeast Asia to strengthen these strategically important logistics markets.” FUTURE LOOK: The group narrowed its earnings forecast for 2023 to $6.6 billion to $7.1 billion as a recovery of the global economy has not materialized yet. The range in the group’s Q2 earnings statement was $6.6 billion to $7.5 billion. “We have planned for different scenarios early on and are therefore well on track to achieve our targets for the year,” Meyer said. “In the current market environment, we will keep a close eye on our costs and continue to invest in growth areas of our global business and our service quality. We are well prepared for the moment when the global economy recovers.” MARKET REACTION: Shares of DHL Grou p (OTCMKTS: DHLGY) were up 2.58% from market open to $40.90 as of market close today. DHL has a market capitalization of $50.6 billion. Editor’s note: All amounts have been converted to U.S. dollars.

Rough market sees DHL revenue down 19.3% YoY

Global Forwarding, Freight revenue fell 44% YoY in Q3

Air cargo demand rises 1.9% in September

My Freighter takes first 767-300F

Related Posts

DHL to grow Central Airlines CMI 777F operation

DHL engages Awesome Cargo for A330-200P2F ACMI

FedEx tops estimates while warning of trade policy pressure

My Freighter takes first 767-300F

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password