E-commerce and perishables business helped soften the blow of a drop in airfreight volumes for Kuehne+Nagel (K+N) in the fourth quarter.
Airfreight volumes at K+N dropped 2.2% to 533,000 tonnes in the fourth quarter of 2023 compared to the same quarter in 2022.
Net turnover in Kuehne+Nagel’s (K+N) air logistics division in the fourth quarter was CHF1.9bn, down 27% year on year. Gross profit was down 34% and earnings before interest and taxes (EBIT) was down 52%.
K&N reported full year 2023 net turnover of CHF6.9bn for the air logistics division, down 41% on 2022. Gross profit was down 40% and EBIT was down 61%.
Nearly 2m tonnes of airfreight were handled by K+N in 2023. In its fourth quarter and full-year results document, K+N said business “normalised” in 2023 following the pandemic boom years.
However, it added: “Volume recovery into year-end (was) driven by e-commerce and perishables.”
K+N also noted that in November it completed the acquisition of South African freight forwarder Morgan Cargo, specialised in the transport and handling of perishable goods. The acquisition could help boost 2024 results for the company.
Meanwhile, the Group’s fourth quarter net turnover in 2023 was CHF5.7bn, down 35% year on year. Gross profit was down 18% and EBIT was down 50%.
Group net turnover for the year was CHF23.8bn, down 40% year on year. Gross profit was down 21% for the year and EBIT was down 49%.
“Kuehne+Nagel’s business results normalised in 2023 following the special economic situation in the years 2021 and 2022,” said the company.
K+N chief executive Stefan Paul said: “Kuehne+Nagel closed the financial year 2023 with an overall good performance in a persistently challenging environment. We adjusted our cost base to market conditions by intensifying restructuring measures in the fourth quarter. At the same time, we succeeded in gaining market share in Sea Logistics, especially in the SME segment. We signed two important acquisitions with Morgan Cargo from South Africa and Farrow (customs broker) from Canada. We are making solid progress toward our Roadmap 2026 goals.”
Kerry Logistics Network has acquired a majority stake in French freight forwarder Business By Air SAS (BBA) to strengthen the firm’s position in the Europe, Middle East and Africa region.
Kerry said that BBA specialises in industrial clients covering verticals such as automotive, aerospace and pharmaceuticals and has acted as its agent in France since 2016.
BBA was founded in 1978 and is headquartered in Roissy-en-France, with four other offices in Orly, Nice & Le Havre, as well as an office in Pointe-à-Pitre, Guadeloupe.
“In addition to multimodal freight forwarding, customs clearance and nationwide trucking, BBA also offers a complete suite of supply chain solutions covering express, on board couriers, project cargo, as well as logistics for fine arts, perishables and personal effects,” Kerry said in a press release.
Vic Cheung, group managing director of Kerry Logistics Network, said: “The acquisition is a natural progression in our strategic pursuit of enhancing our IFF service offerings in the EMEA region.
“With France’s position as one of the world’s top exporting countries, the addition of BBA will significantly strengthen our foothold in the country.
“We are looking forward to the synergies created between KLN’s ocean freight capabilities and BBA’s airfreight expertise, and the extension of our service into the niche verticals of fine arts and perishables, which will further boost our global coverage and competency to offer comprehensive and flexible solutions to customers.”
International Cargo Logistics (ICL), has opened a new office in Rotterdam, the Netherlands, as part of a global growth plan, which will see a focus on developing its perishables operations in Europe.
The Heathrow-headquartered forwarder, which this year marks its 20th anniversary, already operates in over 207 countries and has over 50,000 metres of logistics and storage facilities, offering comprehensive supply chain and Customs solutions.
“We are pleased to establish our presence in the Netherlands, leveraging Rotterdam’s position as a logistics hub,” said Yoav Izhari, Chief Executive Officer (CEO), ICL.
“This move aligns with our commitment to better serve our clients by providing localised support and streamlining our operations.”
Rotterdam provides ICL with proximity to key transportation hubs, including Amsterdam Airport Schiphol and major seaports such as Amsterdam, Rotterdam, and Antwerp.
“Our presence in Rotterdam represents an exciting opportunity to deepen our connections with existing clients, and foster new business relationships across western Europe,” said Ron Rombout, CEO of ICL’s new Netherlands offices.
“Our expertise, joint with our location in Rotterdam, will allow us to continue delivering exceptional service, while contributing to ICL’s global success.”
ICL will further extend its global reach this year, and plans to expand into South East Asia, starting with a new office in Vietnam.
The CMA CGM Group has completed its largest acquisition since its formation with the takeover of Bolloré Logistics from the Bolloré Group.
This follows the European Commission’s recent approval of the acquisition, which has an approximate purchase price of €4.850bn.
The transfer of Bolloré Logistics Sweden to the CMA CGM Group remains subject to the latter obtaining foreign investment clearance in Sweden.
CMA CGM said this deal is its largest acquisition since its creation in 1978 and constitutes a major step in the CMA CGM Group’s logistics development strategy, complementing its historical maritime transport line of business.
Rodolphe Saadé, chief executive and chairman of the CMA CGM Group, said: “I would like to thank the Bolloré Group for the trustful dialogue we have established over the last few months to successfully finalize this acquisition. Within the CMA CGM Group, we are proud to welcome a French flagship built on years of work and experience.
“The new entity, made up of CEVA and Bolloré Logistics, is the world’s number 5 in its sector. We will now be able to offer our customers a complete range of services and extend our expertise to new businesses.
“On behalf of the CMA CGM Group and my family, I would like to welcome the 14,000 employees who are joining us today. Together, we will combine our talents and accelerate our development!”
Cyrille Bolloré, chief executive and chairman of the Bolloré Group, added: “This is the beginning of a new chapter for Bolloré Logistics’ employees. I am very pleased that they are joining the CMA CGM Group and the Saadé family.
“They will bring unique expertise and know-how, which have long made the pride of the Group and which will be the pride of CMA CGM tomorrow. It is also a great opportunity for our customers around the world and I would like to take this opportunity to thank them for their trust and loyalty.”
A major transport and logistics company, France headquartered Bolloré Logistics is built around expertise covering five services areas: multimodal transportation, customs and statutory compliance, logistics, global supply chain, industrial projects. The business has a presence on five continents and in 111 countries.
The company achieved a turnover of €7.1bn in 2022, and transported 710,000 TEUs of ocean freight and 390,000 tons of airfreight.
Bolloré Logistics’ contract logistics subsidiary, Bolloré Solutions Logistiques (BSL) has just this week announced it has acquired STEF Logistique Santé (SLS) to grow its contract logistics business and strengthen its expertise in the pharmaceutical industry.
With CMA CGM’s acquisition, Bolloré Logistics will now be combined with that of CMA CGM’s CEVA Logistics to create a powerful airfreight forwarder.
Traditionally operating in shipping, CMA CGM has been diversifying its operations in recent years.
Its biggest acquisition in the logistics sphere came in 2018 and 2019 when over a period of several months it acquired a majority shareholding in CEVA Logistics.
Business park Tallinn Airport City and Maru Construction have signed a contract for the design and construction of a new cargo terminal on the southern side of the Estonian airport.
The new €8m terminal will measure 5,250 sq ms, with 1,450 sq m of office space and 3,800 sq m of warehousing. It will also feature loading bays for 57 vehicles and 123 parking spaces.
Work is scheduled to commence this spring and should be completed by summer 2025.
Tallinna Airport founded Airport City at the beginning of 2023 to develop and manage commercial real estate in the immediate vicinity of the airport.
Chairman of the management board of Airport City Teet Raudsep said: “This is a notable milestone in the broader plans for Airport City, as the cargo terminal is the first project we’ll be working on as part of the diverse, long-term development of the business park.
“What will make Airport City so special is its unique location so close to the runway at Tallinn Airport.”
Margo Dengo, chairman of the management board of Maru Construction, added: “Our mission is to build the sort of tomorrow we ourselves want to live in. For us, that’s based in innovation and sustainability.”
The developers hope the new facility will achieve a LEED Silver certificate for environmental performance.
Luis Muñoz Marín Airport (SJU) operator Aerostar Airport Holdings has invested in new road infrastructure to improve connectivity across the hub’s cargo facilities.
The operator invested $4.6m in the new road connecting cargo facilities at SJU, which currently handles over 90% of airfreight for the island – a major manufacturing hub for the pharma industry.
The new road links Puerto Rico’s main Baldorioty Highway with SJU’s cargo district replacing temporary access.
The road system features speed awareness measures and will help make the road safer and reduce wear and tear to vehicles.
It will also be lit by solar-powered LED lamps and is part of ongoing investment at the airport to “drive quality in the air cargo supply chain”, the operator said.
Elsewhere, Aerostar is also installing new ULD Racks at SJU and is also in talks with a “major freight operator” to develop new cold storage facilities in the cargo district, with work planned for later this year.
Aerostar has also joined the Board of the Puerto Rico Life Sciences Air Cargo Community, which was launched last year.
“The road improvements mark a crucial milestone in our ongoing commitment to elevate cargo operations at SJU,” said Varlín Vissepó, executive of cargo operations at Aerostar.
“We are dedicated to providing a safer and more efficient environment for our cargo operators.
“Our investment ensures immediate benefits in terms of safety and efficiency, and also lays the foundation for additional improvements for the cargo community.”
Adrián Dominicci, executive assistant of strategic sectors, department of economic and commercial development, added: “Puerto Rico is the number one bioscience manufacturing hub in the US by export volume, and the industry is looking to further expand.
“Aerostar’s investment, combined with the commitment of PR Life Science Air Cargo Community members, will ensure just that.”
Construction has begun on DHL Global Forwarding’s new airfreight centre at Frankfurt Airport.
The forwarder expects to inaugurate the air cargo centre in mid-2025. Fraport, the owner and operator of Frankfurt Airport (FRA), has leased the property space to DHL Global Forwarding and is working on the development project with the forwarder.
Tobias Schmidt, chief executive of DHL Global Forwarding Europe, and Anke Giesen, Fraport executive director retail and real estate, led the official groundbreaking ceremony at Frankfurt Airport’s CargoCity South.
The new building on the approximately 55,000 sq m property will take about twelve months to complete.
At this site, the company will primarily handle airfreight for its German and international customers and manage charter flights with its in-house service provider StarBroker.
The new cargo centre and office complex will partly supplement the existing airport location and offer not just additional transhipment space, but also room for the new StarBroker European headquarters of DHL Global Forwarding.
“Located in the heart of Europe, Frankfurt Airport is of central importance as an international hub for our global air freight network,” said Schmidt.
“We’re very pleased that we were able to develop a larger, more sustainable site in close cooperation with Fraport. The newly created space will enable us to handle greater transport volumes for our customers even more quickly and efficiently.”
The new complex includes freight yards, 25 truck parking spaces and some 185 car parking spaces. Upon completion, the hall will have a total of 54 gates and cross-docks with driving and shunting areas and additional, separate outdoor parking for trucks.
“Today’s groundbreaking of this first-class air cargo centre is part of the continuous development of Frankfurt Airport as Europe’s leading air freight hub,” explained Anke Giesen, executive director retail and real estate at Fraport AG.
“This building will meet the strictest ecological and economic requirements for modern freight handling facilities. As such, it will put our future tenant DHL Global Forwarding in the best position to take its airfreight business to the next level. The realisation of this complex project is also a testament to the extraordinarily broad portfolio and proven expertise of Fraport’s real estate development team.”
Gebrüder Weiss has acquired freight forwarder Cargo-Link as part of efforts to expand its presence in North America.
Family-owned Cargo-Link is based in Salt Lake City, Utah, and offers air, sea and domestic forwarding services, as well as customs brokerage.
As part of the deal, Gebrüder Weiss will also gain access to a 22,000 sq ft warehouse attached to the Cargo-Link office, which is located near the Salt Lake City International Airport.
The takeover is part of the Austrian firm’s efforts to grow its presence in North America.
“Salt Lake City is a fast-growing market that values local presence, and the acquisition provides a new regional market entrance,” Gebrüder Weiss said.
Lothar Thoma, member of the Gebrüder Weiss management board responsible for the air & sea business unit, said: “We are continuously consolidating our presence in North America. With Cargo-Link’s services, we are targeting the logistics needs of small and medium-sized companies.
“We will continue to develop Salt Lake City in our network as a starting point for worldwide air & sea transportation with a focus on transpacific and transatlantic transports.”
The company added that it will retain Cargo-Link’s management team and integrate its employees into the newly merged organisation.
Chief executive and owner Scott Ogden has managed Cargo-Link since its inception.
Cargo-Link was founded in 1976 and, with its 15 employees, is mainly active in the sea and airfreight business segments.
Salt Lake City will become Gebrüder Weiss’ 15th location in North America.
Last year, the company added new locations in Laredo, Texas, and Miami.
Gebrüder Weiss has been active in the US with its own country organisation since 2017. Its US headquarters are in Chicago.
Logistics firm World Courier will open three new stations in North America to support growing pharma volumes.
The Cencora-owned company will add facilities in Denver, Indianapolis and San Diego to expand its capacity to store, handle and transport pharma products, including those that require cryogenic storage.
The facility in Indianapolis will be equipped with liquid nitrogen (LN2) tanks and charging capabilities, the company added.
Matt Virgilio, regional vice president of North America for World Courier, said: “As more complex and sensitive pharmaceutical products enter clinical development, the demand for highly specialized logistics continues to increase.
“By expanding our network and capabilities, we are well-positioned to support our partners’ evolving needs and deliver the solutions required to protect products throughout transport — whether it’s a commercially approved cell and gene therapy product or a vaccine in clinical development.”
The company also recently opened a Container Freight Station at its New York facility so that it can store shipments instead of having them remain with the airline while awaiting customs clearance.
“The new facilities in the US and phased rollout of Container Freight Stations are the latest in an ongoing series of investments World Courier has undertaken to enhance and expand its capabilities globally,” the company said.
The company said it is also looking to expand its presence in Denmark and Germany and has recently invested in tracking technology.
Nick Porter, president of World Courier, added: “These continued investments enable to evolve alongside our partners and deliver the specialty logistics solutions needed to support the unique requirements of the products being developed today.”
Kuehne+Nagel (K+N) will operate social enterprise IDA Foundation’s healthcare hub for the Middle East and Africa region, located in Dubai.
The new IDA Foundation hub is located at the K+N facility at Dubai South and will serve as a centralized kitting and global health logistics center for the region and beyond.
The forwarder will provide product handling, including temperature and access-controlled storage, aggregation, and local and international distribution. A dedicated pharmacist will ensure compliance with strict regulations and risk mitigation.
“Expanding our regional hub in the UAE strategically places IDA Foundation to provide fast and reliable supply of health goods to those in need, with a focus on the Middle East and Africa,” said Wendy Eggen, chief executive of IDA Foundation.
The two companies have been working together for a decade, with the forwarder’s emergency and relief logistics business in Copenhagen providing humanitarian logistics for IDA Foundation to distribute health products.
“This alliance is a testament to our shared vision of providing every patient the healthcare product in condition and in the time, they deserve, but also delivering sustainable logistics solutions,” said Lee I’Ons, president, the Middle East and Africa at K+N.
IDA Foundation, an independent social enterprise headquartered in Amsterdam, provides medicine and medical goods to healthcare organizations worldwide in over 130 countries.
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