DB Schenker reports air and ocean freight growth but revenues down
DB Schenker freight forwarding unit posted growth in volumes in 2016 but revenues were down, figures released by parent company Deutsche Bahn (DB) show.
Air freight traffic increased by 4.5 % on 2015 to 1.18 million tonnes while ocean shipments were up 3.3 % to 2 million TEU. However, revenues declined by 7.3 % to €6.26 billion.
Turnover from DB Schenker’s European land transport division was flat (+0.6%) on the previous year at €6.36 billion.
Contract logistics turned in the strongest financial performance of the company’s three units last year with turnover up 5.6 % to €2.51 billion rising to almost 7% when adjusted for currency effects.
DB Schenker’s global annual revenues fell 2.1 % on 2015 to a little over €15.1 billion but adjusted EBIT rose 3.8 % to €410 million. The EBIT margin remained stable at 2.7 %.
Commenting on the results, DB’s incoming CEO and management board chairman, Richard Lutz, said "all arrows are pointing up at DB Schenker", highlighting that contract logistics had again made gains and increased its revenues.
"In contract logistics specifically, and at DB Schenker as a whole, we are taking advantage of the opportunities afforded by digitalization to put ourselves in a good position for the future.
"First, we are working on the digital logistics center of the future as part of our strategic innovation partnership with the IT provider Cisco. Second, we are putting DB Schenker's European land transport activities on a new footing by partnering with uShip," he said.
"We signed an agreement with the US online freight marketplace in 2016 and have now officially launched our partnership. For the first time, we are connecting land transport carriers and freight online, using just smartphones and tablets and uShip technology."
Meanwhile, DB’s rail freight unit, DB Cargo, which is an independent division and not part of DB Schenker, saw its traffic, measured in tonne kilometre, dip by 3.8 % last year.
Operating losses were reduced by more than half on the previous year to €81 million on revenue down 4.3 % at €4.56 billion.
Separately, DB Schenker is moving its corporate HQ for the Americas from New York to Miami-Dade, in Florida in order to establish regional management functions in one central location, a company spokesperson confirmed to Lloyd’s Loading List.
A new building is currently under construction near Miami Airport and the move will take place in October 2017.