KUEHNE+Nagel reported a year-on-year net turnover increase of 55% in the first half of this year.
The logistics company’s turnover came to CHF 20.6 billion ($30.88 billion) in the half. Its earnings increased year-on-year by 112% to CHF 2.2 billion ($3.3 billion), earnings increased by 113% to CHF 1.6 billion ($2.4 billion), and the group’s conversion rate – the ratio of EBIT to gross profit – was 37.2%.
Kuehne+Nagel International CEO Detlef Trefzger said the uncertainties and obstacles in global supply chains have continued in 2022.
“The COVID-related lockdowns in China, the invasion of Ukraine, the exceptionally strong increase in energy prices and high inflation resulted in an even more challenging business environment,” he said.
“Based on our digital platforms and industry solutions, as well as the tireless efforts of our employees, we were able to deliver efficient, complex logistics solutions for our customers.”
Kuehne+Nagel chairman of the board of directors Joerg Wolle echoed Mr Trefzger saying geopolitical and macroeconomic turmoil is challenging the global economy and especially the logistics industry.
“Even in this challenging environment, Kuehne+Nagel delivers what it promises: a strategically excellently positioned group that impresses with innovative customer solutions based on a global, highly adaptive network,” Mr Wolle said.
“As such, we expect demand for high quality services to remain solid in the second half of 2022.”
In the sea logistics business, the first half of 2022 was characterised by the continuing tense situation in the major seaports – especially in Shanghai and in Europe.
The planning and execution of the individual transports was correspondingly complex and their handling resulted in a high operational workload, the company said.
Container volumes in the first six months of 2022 were 2.2 million TEU, the unit’s net turnover was CHF 9.9 billion ($14.84 billion) and EBIT was CHF 1.2 billion ($1.8 billion). The conversion rate reached 62.2%.
The company said in the first half of 2022, the real-time Sea Explorer platform continued to provide sea logistics customers with comprehensive data to optimise their supply chains. Currently, the Sea Explorer Disruption Indicator, which measures waiting times at ports, is at a high level of 10.4 million TEU waiting days.
In Kuehne+Nagel’s air logistics business unit, the closure of Russian airspace and the lockdown in Shanghai resulted in the immediate rescheduling and diversion of many routes. The operational workload was correspondingly high in the first half of 2022.
Air freight volumes were 1.1 million tonnes in the first six months of 2022.
In the second quarter of 2022, Kuehne+Nagel completed the Cargo iQ recertification with a top rating of three stars. The standard governs the handling of every air freight shipment including necessary operational measures if a shipment deviates from plan.
In road logistics, the company said its networks were fully utilised in all regions over the half-year. Shipment volumes again significantly increased in the first half of 2022.
Since June 2022, Kuehne+Nagel has been using biofuel for the road transport of Moderna’s COVID-19 vaccines between the production site in Spain and the distribution centre in Belgium. As a result, the carbon dioxide emissions of these shipments are almost completely avoided, according to the company.
The the company said its contract logistics unit achieved high utilisation of warehouse space in the first half of 2022 and consistently expanded its range of services for healthcare and e-commerce fulfilment.
