Our global freight forwarding network keeps our customers freight moving across the world.

Airfreight leads the way for DHL Global Forwarding in Q2

DHL Global Forwarding reported improved revenues in the second quarter of the year as performance was boosted by growth in its airfreight business. The Bonn-headquartered forwarder saw revenues for the second quarter increase by 17.9% year on year to €5.4bn, while earnings before interest and tax (ebit) was up 21.9% to €240m. Revenue improvements in the division were led by airfreight, which was up 30.4% year on year to €1.9bn, while ocean was up by 8% and road 8.5%. The increase in air revenues outstripped a volume increase of 7% on last year to 473,000 tonnes, suggesting that the improvement in takings was driven by higher rates. Indeed, freight rates have been on the up this year as a result of higher fuel prices, the Middle East conflict's impact on bellyhold capacity and a demand surge for AI-related shipments. Airfreight revenues are at their highest level since the fourth quarter of 2022, while airfreight volumes are at their highest level since the second quarter of 2022. Kuehne+Nagel saw its second quarter volumes increase by 2.8%, while DSV was up 10%. The company said that in the first half, overall forwarding revenues had been boosted by volume growth and volatile freight rates. Airfreight volume growth came primarily on trade lanes from Asia and Latin America and was supported by resilient Asia-related trade lanes and hyperscaler demand, the company said. The express division also had a strong second quarter, with revenues increasing by 21.5% year on year to €7.1bn, while international volumes increased 9.4% on last year and domestic was up 5.2%. International express revenues in the quarter improved by 20%, while domestic was up 13.4%. Performance was boosted by constraints in air cargo. "In a persistently volatile market environment, DHL Express benefited from a gradual rise in weight transported throughout the network," the forwarder explained. "Capacity constraints in the air freight market also had a positive effect on earnings of around €150m." DHL Group chief executive Tobias Meyer said: "The strong revenue and earnings performance in the second quarter demonstrates that the consistent execution of our strategic measures is paying off. "Higher productivity and efficiency, combined with the strength of our global network, enable us to capitalise on growth opportunities and translate revenue growth into even stronger earnings growth. "In an environment that continues to be shaped by geopolitical tensions and shifting trade flows, our customers benefit from our global presence, local expertise, and operational flexibility. "This enables us to support them in adapting their supply chains to changing market conditions while ensuring reliable logistics, even in challenging environments."

Airfreight rates fall in July despite fuel price rises

Airfreight rates fell last month despite the restart of fighting in the Middle East pushing up jet fuel prices. The latest Baltic Air Freight Index (BAI00) calculated by TAC shows that average airfreight rates in July fell by 8.8% compared with June's levels. While prices were 16.8% up on last year's levels on 27 July - due to the Middle East conflict, higher fuel costs and the data centre boom - the rate of growth has narrowed from levels earlier in the year. The drop-off in rates also came despite jet fuel prices surging as a result of the escalation of fighting between the US and Iran. According to the IATA/Platts Jet Fuel Price Monitor, the average price of jet fuel in the last week of July was up 22.9% on June's levels and 76.4% ahead of last year. "Of course, jet fuel is not the only input into the running costs of an airline. There is also the very significant cost of acquiring or leasing the aircraft, as well as hiring the skilled personnel to run it, plus various other fixed costs," wrote TAC editor Neil Wilson in his monthly Baltic Exchange newsletter column. "But jet fuel is certainly a key input, typically accounting for one-third or more of a carrier's total expenses. "So why did air freight rates not rise in July as they had done so spectacularly in March after the US and Israel first launched air strikes against Iran? "Sources pointed to a number of factors, including the fact that we were now entering the summer or 'low season' when there is usually a lull in air cargo rates. "That often occurs when the summer holidays start, with more passenger traffic, which may increase demand for jet fuel. But it also adds extra bellyhold capacity, particularly on certain lanes, such as transatlantic routes." He added that carriers were also better prepared for fuel shocks this time round and had increased their use of hedging and had secured jet fuel supply further forward. Wilson added that the European Union's addition of a €3 customs duty on low-value parcels imported from outside the bloc had affected e-commerce demand into the EU. The development is reflected in a drop-off in prices on services from Hong Kong to Europe, where average rates - a combination of both spot and contract - declined to $4.76 per kg from $5.45 per kg in June. Compared with last year, rates on the trade were up 8.4% year on year, which is down on the 25% year-on-year improvement registered in June. By the end of the month, average rates on the trade lane were only 1.6% ahead of last year. The fall in rates to Europe came despite reductions in capacity on Asia-Europe lanes, sources suggested, with some freighters withdrawn for maintenance and others redeployed to other lanes, according to Wilson. Meanwhile, rates on services from Hong Kong to North America fell to $6.69 per kg in July from $7.71 per kg in June. Compared with last year, rates on the trade lane are up by 36.2% compared with a year ago.

Hong Kong Air Cargo launches Hong Kong-Mumbai freighter service

Hong Kong Air Cargo has launched a dedicated freighter service between Hong Kong and Mumbai as part of its global expansion plans. Data from Flightradar24 shows that Hong Kong Air Cargo operated a flight from Chhatrapati Shivaji Maharaj International Airport in Mumbai to Hong International Airport on 6 August. Hong Kong Air Cargo's charter programme for the period of 1 August to 31 August includes a Hong Kong - Chhatrapati Shivaji Maharaj International service. However, Air Cargo News (ACN) reported last month that Hong Kong Air Cargo planned to launch charter flights between Hong Kong International and Navi Mumbai International from August. ACN has requested clarification from Hong Kong Air Cargo on its route(s) between Hong Kong and Mumbai. The launch of flights between Hong Kong and Mumbai comes within two months of Aeroprime Group's appointment as Hong Kong Air Cargo's cargo General Sales & Service Agent (GSSA) in India. Raymond Chen, vice president, commercial spokesperson for Hong Kong Air Cargo said: "The launch of our freighter service from Mumbai marks an important step in our India growth strategy. "Mumbai is a key export hub, and we are pleased with the rapid progress achieved alongside Aeroprime Group. Their support have played a vital role in expanding our footprint, and we look forward to strengthening our network and delivering greater value to customers." Abhishek Goyal, executive director, Aeroprime Group, said: "Launching Hong Kong Air Cargo's freighter service from Mumbai within just two months of our partnership reflects the shared commitment and agility of both teams. "Mumbai is one of India's most strategic cargo gateways, and this expansion enables us to offer customers greater capacity, enhanced connectivity, and reliable cargo solutions. "We thank Hong Kong Air Cargo and our partners for their continued trust and look forward to further expanding the airline's presence in India."