DHL Global Forwarding air profits falls 10.6% as sales rise 5.7%
DHL Global Forwarding's second quarter air freight gross profits fell 10.6% year on year to EUR210 million (USD 246 million), drawn on revenues of EUR1.1 billion, which increased 5.7%.
The Deutsche Post-owned forwarder said the overall air cargo market is estimated to have increased by 9-10% during the period.
But air cargo profits declined because of a lag between time rates are increasing and a forwarder's ability to pass these price increases onto customers.
Air freight rates in Asia remained nearly unchanged at a level comparable with the peak season of the fourth quarter of the previous year.
The company said in a statement "Due to our contract structures air freight price increases can only be passed on to customers with a delay.”
"As a result, revenue for the first half of 2017 only rose by 6.3% and air freight gross profit fell despite increased volumes," it said.
Tag Keyword: DHL Global Forwarding , Air Freight , Customers , Revenues