Kerry Logistics Network Limited (‘Kerry Logistics Network’ or together with its subsidiaries, the ‘Group’ or ‘KLN Group’; Stock Code 0636.HK) recently announced the Group’s interim results for the six months ended 30 June 2024.
Group’s Financial Highlights
* For continuing operations only.
Vic Cheung, Chief Executive Officer and Executive Director of Kerry Logistics Network, said, “In 2024 1H, against intensifying geopolitical turmoil and persistently high interest rates, inflation moderated to a three-year low and the global economy returned to growth after three years of slowing. An array of factors pushed ocean and air freight rates up in late 2024 Q2. Supported by its resilience and agility in providing flexible and cost-effective solutions to customers, KLN Group was able to ride the waves in this highly volatile market and recorded a 10% year-on-year growth in revenue and 5% growth in core net profit for its continuing operations 2024 1H, outperforming its international peers.”
Integrated Logistics
The Group’s IL business experienced a short-term contraction in 2024 1H, reporting a 3% drop in segment profit due to the business decline in key markets, Hong Kong and the Mainland of China, amid sluggish economic recovery and prolonged weakness in domestic demand.
The Hong Kong business recorded an 11% drop in segment profit as a result of changes in the consumption patterns of visitors and local citizens, leading to subdued local spending, particularly in the F&B sector. The decrease compared to the previous year was also due to the impact of certain pandemic-related government grants in 2023.
In the Mainland of China, the IL business recorded a 5% drop as stagnant global demand dampened manufacturing activity alongside falling retail consumption amid economic uncertainties. The IL business in the rest of Asia registered a 9% growth riding on the growth in Singapore, Vietnam, the Philippines and India, as well as the stable performance of Kerry Siam Seaport in Thailand.
International Freight Forwarding
The Group’s IFF business recorded an 18% growth in 2024 1H, supported by the growth in key markets including the US, the Mainland of China and Hong Kong.
Building on its broad customer base, competitive rates and strong capacity, KLN Group outperformed the market on the Asia-US trade routes in 2024 1H, retaining its top spot as the leading NVOCC in the world’s busiest trade lane.
The air freight business under the IFF division recorded steady volume growth during the traditional slack season, thanks to upswings in cross-border e-commerce. Positive results were also brought by the integration and collaborations with S.F. Holding including cross-selling and the joint venture formed to manage the international cargo terminal of the Ezhou Airport in Central China. Kerry Freight Controlled Network, the Group’s Trans-Pacific air freight service to connect multiple Asian locations to the US, has commenced the air charter service from Ezhou, the Mainland of China to the US in 2024 Q2 to capitalise on the growing market demands.
Vic Cheung concluded, “Despite the turbulence in the global freight market and the uncertainties of economic revival, we are optimistic about improvements in our performance for FY2024. Performance in the IFF division is expected to grow in 2024 2H riding on sustained demand, stable volume growth and higher yields in ocean freight as well as the anticipated strong results of the air freight peak season in 2024 Q4. Leveraging our unrivalled network in Asia, the most diversified global solutions and a broad customer portfolio, KLN Group is committed to capturing market opportunities wherever they might arise through prompt action amid a stormy logistics landscape.”
Worldwide Flight Services Holland B.V. (WFS), a member of the SATS Group, is expanding its presence in Amsterdam Airport Schiphol (AMS), with the proposed acquisition of Menzies World Cargo (Amsterdam) B.V., Menzies Aviation’s general cargo handling operations at AMS, the main international airport in the Netherlands.
The proposed acquisition will increase the warehouse capacity and cargo handling capabilities for WFS in one of Europe’s busiest air cargo locations. The additional warehouse will provide incremental capacity for WFS which will enable it to capitalise on its strong local customer relations and service levels, and position itself for growth over the long-term.
“WFS has served Amsterdam Airport Schiphol since 2000 and is now operating at close to maximum capacity. The station expansion at the Dutch ‘mainport’ for air cargo is an important strategic milestone which will give WFS the capacity and capability to deliver long-term value to our stakeholders,” said John Batten, Chief Executive Officer, Europe, Middle East, Africa, and Asia (EMEAA) at WFS.
“WFS operates in Europe’s five largest airports by cargo volume and we are excited to see WFS enlarge its footprint at a time of strong demand for its services. We are optimistic that the business pipeline will soon fill the newly acquired capacity and take WFS to the next stage of its growth. We look forward to welcoming new colleagues from Menzies to help build for the future together,” Mr Batten added.
AMS has the largest cargo storage capacity among Dutch airports, operates more direct cargo flights to more destinations than any other airport in the Netherlands and is well- connected with international road, rail, and canal routes passing through the airport.
The proposed acquisition is subject to certain conditions including local works council consultation.
As the world marked International Dog Day on August 26, WestJet Cargo announced the expansion of its pet transportation services to three major European airports: London Gatwick (LGW), London Heathrow (LHR), and Edinburgh (EDI).
This expansion came in response to the growing demand for secure and reliable international pet travel between Canada and Europe, reinforcing WestJet Cargo’s commitment to providing specialized care for pets during their journey.
“At WestJet Cargo, we recognized that pets are beloved members of the family, and their safety and comfort during travel were our utmost priorities. By extending our pet transportation service to LGW, LHR, and EDI, we enhanced connectivity for pet owners and ensured that their pets received the highest standard of care throughout their journey,” said Kirsten de Bruijn, Executive Vice President of WestJet Cargo.
WestJet Cargo’s pet transportation service was tailored to meet the specific needs of all pets, including brachycephalic breeds, which required special attention during air travel. The airline strictly adhered to IATA’s Live Animals Regulations, and all pet transport occurred in pressurized, temperature-controlled cargo holds to ensure a safe and comfortable environment. Pet owners were provided with comprehensive pre-flight preparation guidelines, and WestJet Cargo maintained open communication throughout the journey, offering support in the event of any unexpected changes.
Pet owners and specialized freight forwarders could easily arrange transportation through WestJet Cargo’s customer service or online booking system. The service was designed to comply with European regulations, accommodating the specific requirements of international pet travel.
In addition to the new routes, WestJet Cargo had been operating year-round pet transportation services to Paris Charles de Gaulle (CDG) since earlier this year. In response to continued strong demand, some of the routes scheduled to pause later this year were set to resume next year. Looking forward, WestJet Cargo planned to leverage its strong passenger network to further expand its pet transportation services across Europe.
ECS Group, the global leader in GSSA solutions, is pleased to announce the appointment of Zouber Hachemaoui as the new Commercial Director of its subsidiary, EFIS MAROC effective August 5th, 2024. This strategic move is part of ECS Group’s ongoing efforts to strengthen its presence in Morocco and enhance its sales expertise within the region.
Adrien Thominet, Executive Chairman of ECS Group, expressed his confidence in Hachemaoui’s leadership: “This appointment aligns with our strategy to embed strong sales expertise locally, reflecting the standards we uphold across the entire ECS Group network. With over 20 years of experience in the GSA field, Zouber is exceptionally well-suited to lead our operations in Morocco, where he will play a crucial role in driving commercial development and enhancing our partnerships with airlines and freight forwarders.”
Zouber Hachemaoui shared his enthusiasm about joining EFIS MAROC: “It is an honor to be part of such a dynamic and innovative organization. My main objective is to consolidate our network and continue delivering top-tier service to our customers. Morocco and Africa present immense growth potential, and by leveraging ECS Group’s extensive network, we can unlock new opportunities and solidify our position in these markets.”
Under Hachemaoui’s leadership, EFIS MAROC will focus on expanding its reach and providing tailored solutions to its customers, marking a significant step forward in ECS Group’s commitment to growth in Africa.
Launched in February 2023, CargoAi’s CargoWALLET has quickly gained traction and today facilitates cargo payments in over 47 currencies. The freight industry’s fastest growing digital enabler has now appointed global payment expert, Olivier Veyrac as its Senior Vice President for CargoWALLET.
Over the last 18 month, CargoWALLET has been adopted by 5,000+ Airlines, Freight Forwarders, GHAs and logistic service providers. With CargoWallet, CargoAi freight professionals can now pay from 150 countries and in over 47 currencies using local payment methods. The wallet is available to all logistics companies. CargoWALLET is proving particularly attractive to freight forwarders because of its instant-cross-border payment capability. With the wallet, airlines can accept instant payments from all their customers, rather than inconvenient cash payments, long settlement times or having to rely on bank guaranties before accepting a booking.
The integration of CargoWALLET directly with freight forwarders Transport Management System (TMS) is an additional use case permitting faster payment and reconciliation via multiple payment methods.
“Positive customer feedback and the rapid success of CargoWALLET show that the industry is keen on adopting reliable payment solutions,” says Matt Petot, CEO of CargoAi. “CargoWALLET has reached critical adoption in its early version. I am delighted that Olivier Veyrac has joined us as Senior Vice President of CargoWALLET to take it to the next level. Olivier Veyrac has extensive financial technology and technology integration experience, working with companies across the world. Furthermore, his experience scaling global BtoB payments solutions and commercial partnerships will prove invaluable to the success of CargoAi fintech venture.
“CargoWALLET offers the broadest reach by far in the industry with the enablement of over 200 payment methods from 150 countries. It meets the security and confidentiality requirements demanded by the strict banking regulations, making it one of the strongest options in the industry” Said Veyrac, he added: “There is still room for improvement. More new features, more partners, and more countries are my goals for the coming months.”
Cross-border payments via CargoWALLET, have dropped processing times from days to seconds, and reduced bank fees. It also opened up the possibility for some import customers in some part of the world to settle their accounts electronically for the first time. Many forwarders are going one step further and use CargoWALLET as their second bank account, With the addition of Olivier Veyrac, CargoWALLET is set to eliminate every last obstacle in the freight customer payment journey.”
Lovett Industrial has completed the Broadway Logistics Center, a 201,329-square-foot Class A industrial building in Denver’s Central Industrial submarket.
Located at 6795 Broadway, the facility features a 2,250-square-foot Class A office, 32-foot clear heights, a six-inch reinforced concrete slab, 204 auto parking stalls, 57 dock-high doors, 130-foot truck courts, and 50 trailer parks.
The building, which offers flexible leasing options down to 22,360 square feet, is being marketed by Drew McManus, Bryan Fry, and Ryan Searle of Cushman & Wakefield.
The center is situated in an advantageous infill location with low sales tax rates in Unincorporated Adams County. Denver’s North Central submarket, where the project is located, remains strong with a 5.2% vacancy rate and robust leasing activity.
Edge Logistics, LLC, a leading digital freight broker, announced that William A. Kerr has transitioned out of his role as CEO. Kerr founded the company in 2014 and led its growth in the transportation sector, developing advanced transportation management systems and an internal digital marketplace.
This transition follows the sale of Edge to Edge Logistics Holdings, LLC, and is part of the company’s new leadership changes.
“We thank Will Kerr for his years of service and wish him well in his future endeavors,” said Rami Abdeljaber, Executive Chairman of the Board of Edge Logistics. “We are excited to grow the company under our new leadership.”
As part of these changes, Rami Abdeljaber will assume the role of CEO, bringing his extensive experience across multiple industries to drive the next phase of Edge Logistics’ growth.
Rami is a seasoned entrepreneur and executive with a wealth of experience. As President & CEO of Mills Escrow, Janus Logistics, EPRMA Investments, and Black Oak Real Estate, he leads operations and strategic initiatives in financial services, logistics, and real estate. He also holds key leadership roles as Executive Vice President & COO of Russell Transport and Atlas Factoring and as Executive Chairman of Edge Logistics.
With a degree in Accounting and a master’s degree in Business and Accounting, Rami has a strong foundation in mergers and acquisitions (M&A). He has a proven track record of revitalizing challenged companies, driving growth, and enhancing operational efficiency. As an accomplished entrepreneur, Rami is passionate about fostering innovation within his organizations and leverages his diverse expertise to achieve exceptional results. He is always open to exploring new opportunities for collaboration and success.
Freightos, a global leader in freight booking and digital solutions, has announced the acquisition of Shipsta, a prominent freight-tender procurement platform based in Luxembourg. This strategic move aims to broaden Freightos’ service offerings and strengthen its position in the global freight industry.
The acquisition, financed through a combination of €4.5 million in cash and approximately 640,000 Freightos shares, is set to enhance Freightos’ existing spot pricing, quoting, and booking services by integrating Shipsta’s advanced tender procurement capabilities. This segment represents 50-70% of the air and ocean freight market, making the addition a significant expansion of Freightos’ digital freight services.
Key Highlights:
Zvi Schreiber, CEO of Freightos, emphasized the strategic importance of the acquisition: “Shipsta’s platform, customer base, and experienced team will add significant value to our offering by introducing tender management and contract procurement. This move not only strengthens our market position but also aligns with our vision of end-to-end digitization of the freight industry.”
Freightos, known for its global freight booking and payment solutions, operates platforms such as Freightos Marketplace, WebCargo, and Clearit. The acquisition of Shipsta is set to accelerate Freightos’ growth, enhance its service offerings, and drive innovation in freight management.
Christian Wilhelm, CEO of Shipsta, highlighted the potential for growth and enhanced service: “Joining forces with Freightos will allow us to continue delivering exceptional service and efficiency to our customers while driving new efficiencies and innovation in the freight sector.”
The combined Freightos and Shipsta platform will offer a unified digital solution for carriers, freight forwarders, and importers/exporters, significantly improving the procurement and management of freight services globally.
Federal Express Corporation (FedEx) has introduced FedEx Surround®, an advanced solution designed to revolutionize logistics and supply chain management by enhancing shipment control and visibility. Initially available to customers in Hong Kong SAR and Singapore, FedEx Surround® will soon expand to other Asia-Pacific markets, including mainland China, Japan, Malaysia, Australia, Korea, and Taiwan.
FedEx Surround® integrates seamlessly with FedEx’s existing transportation network, offering three levels of service: Select, Preferred, and Premium. This new suite of tools is tailored to support industries such as healthcare, aerospace, and high-tech by providing critical updates and interventions to ensure the integrity and timely delivery of sensitive shipments.
Key Features of FedEx Surround®:
FedEx Surround® leverages advanced sensor technology, including SenseAware ID, which uses Bluetooth Low Energy (BLE) to transmit precise package location data every two seconds. This frequent data transmission, compared to traditional scanning protocols, allows FedEx to track packages hundreds of times, providing an unprecedented level of real-time visibility.
Kawal Preet, President of FedEx Asia Pacific, emphasized the impact of FedEx Surround®: “At FedEx, we are constantly innovating to meet the evolving needs of our customers. FedEx Surround® is not just about tracking; it’s about smartly intervening in real-time to ensure that shipments are actively managed to mitigate risks. This solution is a game-changer for businesses relying on just-in-time delivery and high-stakes shipments.”
FedEx’s commitment to innovation is evident in the strategic use of AI and machine learning technologies within the FedEx Surround® system, which helps predict potential disruptions and enables swift, informed decision-making. The introduction of FedEx Surround® marks a significant advancement in how businesses manage logistics, providing enhanced visibility and control over their supply chains.
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